Earlier quoted context omitted.
Especially when, as I’ve learned, so few places allow touchless/Apple Pay payments.
While the point remains that Apple Card’s rewards are inferior, I find that almost everywhere except Home Depot/Walmart/Lowes/Kroger/Winco accepts Apple Pay.
Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
231–240 of 306 posts
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#232Decent but there are plenty of higher yield savings accounts out there
Do you have some you can provide?
CIT has two options:
Savings Connect [1]: 4.50% APY, no minimum balance, no fees
Platinum Savings [2]: 4.75% APY, min. $5000 balance to qualify for APY, but once you qualify 4.75% APY on whole balance (not just balance above $5000)
I use the savings connect personally and am considering whether or not I want to open a platinum savings account.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#233Earlier quoted context omitted.
I'm getting 4.25% from Vanguard's "Cash Plus" account[0], which is also FDIC-insured (up to $1.25M). I don't use Apple Pay so can't comment on 3, but I'll happily take an extra 0.10% interest at the cost of only being able to use it as a savings account - though I do recognize that others might disagree! [0] https://investor.vanguard.com/investment-products/cash-inves...
Compared with inflation, you're still losing money holding dollars.
Yup, but you're losing less than most other liquid options.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#234Earlier quoted context omitted.
A product available only to iPhone users doesn't strike me as low-margin.
Apple's margins aren't Goldman's. https://9to5mac.com/2023/02/16/apple-card-future-goldmans-sa... > In January, a report indicated that Goldman Sachs had lost over $1 billion through its partnership with Apple for the Apple Card. Despite this, however, the company says that it remains committed to its partnership with Apple and expects it to be lucrative in the long run.
Related to that Goldman Sachs seems to be taking everything they are learning from Apple and applying it to Marcus, their growing consumer banking brand, and Marcus certainly seems low-margin targeted.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#235Earlier quoted context omitted.
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.
This fund owns 3 month or less T-Bills. There's zero credit risk and effectively zero duration risk. It's an automated Bond ladder of US T-Bills. Though you can save 0.05% in management fees by laddering them yourself
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#236Earlier 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…
This is a dumb question, but how does an individual buy those? Through any regular brokerage?
I just buy shares of VUSXX from Vanguard. Currently 4.63%. But really, if you have money to invest, you should have a real stock and bond portfolio that's going to beat any savings account.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#237I 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!
Bank accounts are one of the lowest "customer churn" services out there. People typically open a bank account and use it for years and years (which turns into decades on decades). Until someone like Apple comes in with a one click UX to open a bank account and set everything up, existing banks have no incentive to make existing clients happier because they're extremely unlikely to move banks (or even to open a better…
And everyone hates messing with payroll, even if your employer has a good system it's an opening for problems.
My previous employer had at least two different Ceridian installs, one was for W2s and the other was for regular payroll, they used different passwords, half the time they'd expire out by the time you logged in and you'd have to get HR to reset it, etc. And even if you want to go back and mess with it, when does it take effect? A lot of people don't have a cushion sitting in a bank account and can't afford to have a paycheck disappear and then spend a couple days pairing their credit card payment to the new bank account etc.
That's why you can get those $600 promos or whatever if you open a new checking account and turn on an auto-deposit. Most people will set it and leave it.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#238It'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…
At what point does an investment with Apple actually become just as safe if not safer than the FDIC? Neither is realistically going to fail, but with the debt ceiling once again rearing it’s head, I have more trust in the leadership of Apple not doing something stupid than I do in the US government not doing something stupid. Governmental incompetency and dysfunction seems like a bigger risk than insolvency of Apple.
Don't buy Apple Stock instead of keeping some cash in a bank account.
* If you need cash in an emergency it's possible that Apple stock will be negatively effected by the same emergency.
* Anything that causes FDIC to fail will negatively impact Apple Stock, causing you to lose a lot of the value you were trying to protect against that exact situation.
* Cash in a bank account is more liquid than a stock. It's common for the sale of a stock to result in usable cash after 3 business days. I can withdrawal from a savings account 24/7. If you have an unplanned and urgent situation cash is fantastic.
* The odds are higher than the US Government stays solvent over the next 120 years than Apple does. Governments are designed for more long term stability than companies.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#239Earlier quoted context omitted.
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 comb…
Both gold and crypto have wildly different profiles than cash in a high interest savings account, so much so that suggesting them as a plug in alternative is at best disingenuous.
Not that that's always way you want! But most people need some sort of emergency fund, and very few things are liquid enough and stable enough to meet this need well. Laddered CD's, etc. can work but are fiddly. Cash accounts are king here for a reason.
On the long term investment side: sure cash accounts are a bad idea. On the other hand, the idea that the stock market is "gambling" but defi lending isn't is - idiosyncratic.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#240It'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... ).
Interactive Brokers offers 4.33% for cash above $10k. They have a very easy model of "benchmark minus 0.5%": https://www.interactivebrokers.com/en/index.php?f=46385
Insurance is $2.75M but IBKR isn't a bank and isn't subject to the same problems in the same ways (e.g. bank runs).