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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

#251

Post by ska »

latchkey wrote: post #249
ska wrote: post #239

Earlier quoted context omitted.

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…

Wait a second. I'm only providing examples to better the discussion and now you're calling me disingenuous. I'm not shilling anything. Nor am I saying anything isn't without risk. Putting words into my mouth isn't cool either.

I'm saying you responded to someone explicitly talking about "emergency funds" with examples presented as if they have similar profiles (to savings account) for that use, and they simply don't.

I'll accept "disingenuous" was perhaps premature, apologies - you could also just be confused.

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

#252

Post by lowkey »

azinman2 wrote: post #243
kylehotchkiss wrote: post #173

Earlier quoted context omitted.

Apple's cash back is OK. If you want to play and win the points game, Amex Gold for dining/groceries and Amex Green for all travel expenses can net you some nice travel options in the future. Getting 100,000 points (the rough equivalent of $1000 cash back) can get you some nice business class seats over the oceans to EU and Asia that can be worth 5-10x the cash value of the points.

Only Apple comes with privacy guarantees.

I think this is important to emphasize. The Apple Card is the only credit card available in the US that comes with an explicit commitment not to sell you PII or transaction data.

Privacy guarantees are an undervalued benefit.

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

#253

Post by officeplant »

Simulacra wrote: post #2

How many of you got the card just to have a titanium Apple card, and never used it, or was that just me?

I like tinking it against the table. I got one for the 3% back and financing on Apple products. Kept it for the tink tink noises and for the physical card having absolutely no info on it to steal (and a rotating CCV number)

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

#254

Post by latchkey »

archagon wrote: post #246
latchkey wrote: post #211

Earlier quoted context omitted.

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…

This sounds a lot like becoming a professional investor. Most people don't have time for that (and there are no financial guarantees in any case).

As soon as you get a 'real job', you're immediately pushed on the concept that you're supposed to stuff money into a 401k and let other people manage it for you because you're too busy or this stuff is too hard and others can do a better job at it for you. Sure, that's something that you can do, or you can decide to put the time and effort into learning more about finance and control what you do with your money a bit more. The choice is yours and yes, everything has some level or risk. Even ETF's have buckets of risk/reward.

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

#255

Post by lowkey »

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 completely agree. As soon as the option appears in my app I will be signing up.

Also, external deposits are allowed from a linked bank account.

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

#256

Post by chimeracoder »

philistine wrote: post #242
chimeracoder wrote: post #198

Earlier quoted context omitted.

> 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…

This sounds like the type of situation where money becomes worthless. An asteroid the size of Texas just fell into the Pacific? What will happen to my FDIC insured funds!?

> This sounds like the type of situation where money becomes worthless. An asteroid the size of Texas just fell into the Pacific? What will happen to my FDIC insured funds!?

Yeah, I would be more worried about the USD itself becoming unstable than about the FDIC not paying out insured deposits.

And at that point, Apple would have far bigger concerns than the brand risk of people losing their Goldman-held savings.

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

#257

Post by latchkey »

ska wrote: post #251
latchkey wrote: post #249

Earlier quoted context omitted.

Wait a second. I'm only providing examples to better the discussion and now you're calling me disingenuous. I'm not shilling anything. Nor am I saying anything isn't without risk. Putting words into my mouth isn't cool either.

I'm saying you responded to someone explicitly talking about "emergency funds" with examples presented as if they have similar profiles (to savings account) for that use, and they simply don't. I'll accept "disingenuous" was perhaps premature, apologies - you could also just be confused.

Gold was the first example I used, but you have now latched onto DeFi because well... omg, not that horrid crypto thing on HN!

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

#258

Post by maxerickson »

paxys wrote: post #223
slg wrote: post #118

Earlier quoted context omitted.

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.

Apple has approximately $50B in cash on hand. The US government can print a trillion+ on a whim. So if there's a banking crisis I'm going to trust the FDIC to bail me out over Tim Cook (and there's a pretty strong recent precedent of exactly that).

It's most likely $50 billion in cash equivalents, not cash. They probably have essentially 0 cash (some comparatively meaningless amount).

They are highly liquid instruments, but in a bank run, Apple likely wouldn't be any more able to convert them to actual cash than any other party.

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

#259

Post by ska »

latchkey wrote: post #257
ska wrote: post #251

Earlier quoted context omitted.

I'm saying you responded to someone explicitly talking about "emergency funds" with examples presented as if they have similar profiles (to savings account) for that use, and they simply don't. I'll accept "disingenuous" was perhaps premature, apologies - you could also just be confused.

Gold was the first example I used, but you have now latched onto DeFi because well... omg, not that horrid crypto thing on HN!

That's not what I said, or meant.

Both gold and crypto are poor vehicles for original commenter's need.

My comment about defi was just because you characterized the stock market as "gambling" (somewhat unfair, but certainly can be), but for somehow failed to annotate defi as an alternative that is "even more so gambling"...

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

#260

Post by scubbo »

latchkey wrote: post #211
scubbo wrote: post #159

Earlier 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…

I think you're comparing apples to oranges. Even Crypto's most ardent supporters would not disagree that prices are volatile - which means that it doesn't suit my stated requirement that there's never a bad time to liquidate the investment (if my roof springs a leak right as WhateverCoin takes a nosedive, I'm shit out of luck). I will admit that I've never invested in gold, but if you're talking buying actual literal physical gold then I can't imagine that it can be liquidated as quickly as would be necessary; and, whether you're talking about buying literal gold or an abstract investment tied to Gold, I'd be very surprised to hear that it has an appreciation rate that beats HYSAs - and hey, if it does, I'm extremely grateful to you for pointing out an alternative investment strategy to diversify with!

To be clear, my requirements are:

* Near-instantly liquidatable (a day is maybe ok, hours is better).

* Value is not volatile - explicitly, extremely high likelihood that, whenever I need to extract value from it, the value will not have significantly lowered (I assume there's some economic theorem which states that this puts an upper bound on the interest I can expect to earn).

* A distant third is "combats inflation as much as possible", but I recognize that a lower interest rate will be earned because of the first two requirements.

EDIT:

> 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.

I suspect we may have our priorities crossed. I'm not trying to hold liquid funds that try to combat inflation - I'm trying to hold liquid funds that have a strong guarantee of non-volatility. I agree with you that if the constraint of volatility is relaxed, then there are many better (higher-rate-of-return) options than a HYSA.

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