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Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

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Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#211

Post by latchkey »

scubbo wrote: post #159
latchkey wrote: post #157

Earlier quoted context omitted.

Compared with inflation, you're still losing money holding dollars.

This is a factual but unhelpful comment. I (and many many other people) have a need for an emergency fund that is liquid at short notice. Storing _all_ my wealth in investment vehicles (and possibly needing to liquidate it at an inopportune time) would be foolish. The devaluation due to inflation can be considered the "convenience cost" of such a fund. (There's also the consideration - and, to be clear, I'm not suppo…

It is a helpful comment because a lot of people don't think about things in the terms that I'm outlying. In the same way that people don't think about how getting paid a salary in USD is the same as buying dollars.

Your response suggests that the only way to protect yourself is by holding cash and taking the loss as some sort of convenience cost. I'd say that there are other ways to hold liquid funds that try to combat inflation beyond just gambling in the stock market. To preempt a request for an example, gold is a popular method. And I know HN hates this, but the current bull market in crypto, is another. For that, I'd suggest more than just buy/hold and really delve into the lending/borrowing markets in DeFi.

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#212

Post by somsak2 »

foxyv wrote: post #209
gurjeet wrote: post #63

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…

Betterment is offering 4.2% in their Cash Reserve right now and they are FDIC insured up to $2 million. https://www.betterment.com/cash-portfolio#:~:text=FDIC%20ins... ).

Wealthfront offers the same, but with 4.3% and $3m insurance

https://www.wealthfront.com/cash

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#213

Post by atourgates »

post_break wrote: post #156

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.

It's interesting that both Marcus and Apple's HYSA are operated by Goldman Sachs, but Apple's gets a higher interest rate.

I wonder if that's part of their deal with Apple, and if/how Goldman Sachs is incentivized to offer a better rate to their Apple-associated product then their own in-house brand.

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#214

Post by thisarticle »

shmatt wrote: post #59
danpalmer wrote: post #42

I'm surprised that Apple Card (credit and savings) aren't available outside the US yet. A financial product that is only available to iPhone users seems like a reasonable business, but if it's only available in one market it's limited and you can't build much else on top because it's slicing the market to granularly. I realise that international financial products are hard, but isn't that the reason why Apple is dele…

Not too many options that are high spending countries with plenty of iPhones but also a regulation wild west and people willing to pile on hundreds of thousands in high APY debt like the US a true sweet spot Less than half of French people even have a single credit card

> people willing to pile on hundreds of thousands in high APY debt like the US

That’s a pretty unfair characterization of CC borrowing in the US. I’m sure there are some instances of that but most people have either a minimal amount on CC or none at all.

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#215

Post by [deleted] »

etrautmann wrote: post #168
cragfar wrote: post #150

Earlier quoted context omitted.

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.

+1 here. This seems like the best option for fixed income assets right now.

[deleted]

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#216

Post by Larrikin »

hakunin wrote: post #114

So far each new Apple financial product makes me research and re-evaluate my options. When they announced their credit card, I got into "cash back" (thankful that I did), and ended up always getting good percentages back on every purchase. Apple Card was a jumping off point for further research. (For those curious, I ended up with Bank of America Premium Rewards at Platinum Honors tier + Amazon 5% card, Target 5% car…

I personally fully expect Ally to continue being competitive as they have a history of matching rates competitively.

Sometimes there are gimmicky rates that are nice to take advantage of for a bit, but they usually have some annoying requirements to get the high rate and limit the amount you can get.

If Apple isn't losing money on a temporary rate to get some customers then Ally will have it's rate go up, as it's one of their main competitive advantages.

Also, the Chase cards are usually better to get as the opening bonuses are among the highest out there, making them far more advantageous to get for overall straight cash back. Ideally you get the less useful cards like target and Amazon after getting their line of cards. Discover and Chase often times will have Amazon and target for five percent on their quarterly cards as well.

Chase points on one of their Sapphire travel cards are also extremely valuable. Some of their travel partners can have offers that reduce the hotel prices down to fifty percent or more of the cash price. And the guaranteed increase in point value for plane tickets is also very nice. Never been able to justify the cost of their more expensive Sapphire, but the Sapphire preferred usually pays for itself after just one trip.

The one thing to be wary of is their 5/24 rule, but usually that only hits churners.

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#217

Post by slg »

chimeracoder wrote: post #198
slg wrote: post #141

Earlier quoted context omitted.

Yes, but it is still Apple's brand on the line. Which of the following has higher odds? 1. GS going under and Apple bails out its customers who hold these accounts. 2. GS going under and the US government bails out everyone. Both are as close to 100% that this conversation is effectively meaningless. I just think it is an interesting hypothetical.

> Both are as close to 100% that this conversation is effectively meaningless. I just think it is an interesting hypothetical. The first has almost 0% chance of happening. Apple will never bail out its customers for insured deposits, as that money is guaranteed by the FDIC. Why would they effectively "donate" money for free to the FDIC? The only universe in which that happens is the one in which the FDIC somehow is i…

>The first has almost 0% chance of happening. Apple will never bail out its customers for insured deposits, as that money is guaranteed by the FDIC. Why would they effectively "donate" money for free to the FDIC?

Yes, this was a hypothetical based on a situation in which these accounts weren't protected by FDIC, either by design or some problem with the FDIC. Apple isn't going to donate money to the federal government. But I could see it donating money to its customers as an attempt to retain the value of its brand.

>The only universe in which that happens is the one in which the FDIC somehow is insolvent and the federal government abandons the FDIC and the cascading effects of the latter (which would almost certainly create a national if not global financial crisis that makes 2008 look quaint) somehow don't affect Apple enough that they could use their additional cash on hand to pay their entire banking liabilities. Which is pretty unlikely, given that most non-banking companies don't have cash reserves that large that they can dip into at a moment's notice. Even Apple, the world's biggest company, has "only" $50B in cash on hand as of last quarter, which sounds like a lot but would not be enough to weather that kind of a crisis and still be able to make depositors whole even if they felt that it was their responsibility.

The FDIC might not have the money to cover a failure as big as Goldman Sachs and the cascading effects (a quick Google search says the FDIC has $128b in the insurance fund and GS has $110b in consumer deposits, so it seems close at the moment). The big question is what would the US government do in response to a failure this big. Would a polarized and split Congress want to or even be able to compromise on a rescue plan? What if the issue is specifically at Goldman Sachs due to corruption or some other crime rather than an issue with the overall economic environment? Like I said, the odds of this situation are extremely low, but so are the odds of Apple accepting the destruction of their brand.

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#218

Post by koolba »

TradingPlaces wrote: post #171
koolba wrote: post #142

Earlier quoted context omitted.

> I’m moving a bunch of cash over once I set it up US 3-month Treasuries are paying 5.125% and are State tax free so if you're not planning on touching the money in the near term that's an even better position. They're about as liquid as securities get so if you do need to sell them for cash there's not going to be any meaningful hit to their valuation. At most it'll be a couple bucks of transaction fees (if that) wh…

They are also illiquid for 3 months. A savings account is for more liquid savings

US treasuries are marketable securities. The 1-month and 3-month ones the most liquid asset on the planet. Also US treasuries have the unique property of being explicitly 100% guaranteed by the US government so no $250K limit to worry about.

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#219

Post by shagie »

koolba wrote: post #142
TradingPlaces wrote: post #124

This is the best savings account out there, imo 1. The rate is 0.25 percentage points higher than Goldman’s own Marcus account. Apple extracted 0.25% in rent from Goldman and gave it to their customers. 2. FDIC insured through Goldman, and the max deposit is the FDIC limit, $250k. 3. Easily usable in Apple Pay, so almost like a high interest debit account. I’m moving a bunch of cash over once I set it up edit: unclea…

> I’m moving a bunch of cash over once I set it up US 3-month Treasuries are paying 5.125% and are State tax free so if you're not planning on touching the money in the near term that's an even better position. They're about as liquid as securities get so if you do need to sell them for cash there's not going to be any meaningful hit to their valuation. At most it'll be a couple bucks of transaction fees (if that) wh…

Got two weeks on the current rate for the I bonds at 6.89% - https://www.treasurydirect.gov/savings-bonds/i-bonds/

Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p

#220

Post by citizen_friend »

adam_arthur wrote: post #184
koolba wrote: post #142

Earlier quoted context omitted.

> I’m moving a bunch of cash over once I set it up US 3-month Treasuries are paying 5.125% and are State tax free so if you're not planning on touching the money in the near term that's an even better position. They're about as liquid as securities get so if you do need to sell them for cash there's not going to be any meaningful hit to their valuation. At most it'll be a couple bucks of transaction fees (if that) wh…

Can just put money in SGOV for a minimal fee (0.05%) which invests in T-Bills for you. Slightly lower yield due to timing issues, but close enough and no micromanaging individual treasuries. Nobody should be moving money around different savings accounts for yield... use products designed to make it easy. https://www.blackrock.com/us/individual/products/314116/isha...

bond funds have principal risk. If you buy an individual bond and hold the duration, you don't care about rate changes, you just sell and don't buy again.
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