201–210 of 306 posts
I just opened my account and transferred my balance from Marcus. Took me 2 minutes, vs trying to sign up for a higher yield at a different bank.
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> At what point does an investment with Apple actually become just as safe if not safer than the FDIC? Apple would have to be backed by something other than the dollar for this to be remotely possible.
They’re backed by iPhones.
When will Apple Card be available outside the US? I would use it if it was available in Europe… Sometimes Apple is too US centred.
This is below current market rates for savings accounts (edit: for online-based high-interest savings accounts). Current highest rate for a no-minimum FDIC-insured account is from UFB, which is 4.81% APY: https://www.fool.com/the-ascent/banks/the-highest-savings-ac...
Is UFB a reputable bank? I've never heard of them, but that rate is hard to pass up.
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They are also illiquid for 3 months. A savings account is for more liquid savings
I could be wrong, but I thought you could sell T-Bills fairly easily on the secondary market. You might take a bit of a haircut, so it's obviously better to hold onto until maturity, but I think in a pinch you can get most of the money back.
This is below current market rates for savings accounts (edit: for online-based high-interest savings accounts). Current highest rate for a no-minimum FDIC-insured account is from UFB, which is 4.81% APY: https://www.fool.com/the-ascent/banks/the-highest-savings-ac...
Is UFB a reputable bank? I've never heard of them, but that rate is hard to pass up.
I feel somewhat confused; my current Wells Fargo saving account APY is 0.01% where did I go wrong? Seems like I might be shifting my money to a new home. Edit: In the very least it will educate many uninformed folks like myself they are getting shafted at their current banks. Double edit: Thank you for all the helpful links and information!
I just took a double-look at the Betterment high-yield savings account they'd offered to me previously (I already have an account there for investments), which I'd dismissed because it seemed convenient to keep my savings and checking in the same place (Chase), and it's 4.2%! I've been getting 0.01% at Chase! Needless to say I'm going to be trying it out! Thanks Apple! Edit: It looks like they have a checking account…
There is some small risk that if betterment folds, those funds aren’t protected. It’s afaik never been really tested in court. FDIC would protect only the underlying bank - not betterment. It’s a very small risk though. But a real bank doesn’t have that risk.
A lot of these small investment companies like betterment or wealth front are on pretty shaky financial grounds - so it could come up sooner than expected.
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Fidelity and Vanguard have "core" positions (all money goes into these) that are yielding 4.4-4.7%. They're money market funds so are covered by SIPC insurance. If you're looking to open up something for your kid, might as well just open one up for yourself as well.
You wrote: They're money market funds so are covered by SIPC insurance. If I understand your post correctly, this is not like FDIC insurance. Money market funds can always lose money and are not SPIC insured like FDIC insurance. (Please correct me if wrong.) What does it mean to "lose money" in money market funds? Most money market funds are buying very short-dated debt (about 90 days or less) -- like commercial pape…
It's interesting that they will not accept any transfer-in, even reject a transfer, if the balance exceeds $250,000. This must be because of the FDIC insurance limit, and hence protects the consumer's savings. Quite the opposite of what some banks are trying to do: offer accounts that try to provide FDIC insurance over 250k by spreading your money among other banks. From the footnote 1: https://www.goldmansachs.com/t…
https://www.betterment.com/cash-portfolio#:~:text=FDIC%20ins...).
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I just took a double-look at the Betterment high-yield savings account they'd offered to me previously (I already have an account there for investments), which I'd dismissed because it seemed convenient to keep my savings and checking in the same place (Chase), and it's 4.2%! I've been getting 0.01% at Chase! Needless to say I'm going to be trying it out! Thanks Apple! Edit: It looks like they have a checking account…
> is there any reason not to just move over completely? Technically Betterment is not a bank, but it sounds like these cash accounts are backed by accounts at banks There is some small risk that if betterment folds, those funds aren’t protected. It’s afaik never been really tested in court. FDIC would protect only the underlying bank - not betterment. It’s a very small risk though. But a real bank doesn’t have that r…
Is it possible they'd try to claim first-dibs on your funds that are living in other banks if they went under and had to pay back shareholders?