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Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
271–280 of 306 posts
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#272Earlier quoted context omitted.
Absolutely right, and I salute the impulse to educate folks that taking financial responsibility and autonomy is something that is possible and profitable! (While still disagreeing with you that crypto fits the requirement-profile of an emergency fund :P )
I just wish I had realized it earlier. I'd have never put any money into a 401k or the stock market. Worst performing asset class that I can imagine. Maybe some people are happy with the results they've gotten, but there is really a lot more you can do if you are willing to put the energy/time into it.
On the other hand, I'm reminded of this article I recently read: https://www.theguardian.com/technology/2022/nov/04/how-i-los...
You could easily argue that this guy made poor decisions with his money, but it's also all too easy for investors to attribute their success to skill, not just a few lucky bets.
In the long run, my understanding is that few things will consistently outperform plain old index funds.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#273Earlier 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).
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Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#274Earlier quoted context omitted.
> Both gold and crypto are poor vehicles for original commenter's need. Why is gold a poor vehicle? > My comment about defi was just because you characterized the stock market as "gambling" If humans could predict the future, we wouldn't have gambling. That's what makes the stock market a gamble. Can you offset that with derivatives, like options? Sure! That said, you're showing your naivety around DeFi with your res…
> Why is gold a poor vehicle? Physical gold is too usually too illiquid. Digital gold solves that, but in general the short term volatility makes it imprudent for emergency funds. > Lending/borrowing isn't a gamble beyond the underling risks involved. This is called burying the lede, I believe. The underlying risks include significant structural risk on the institutions and vehicles themselves, not comparable at all…
> Digital gold solves that, but in general the short term volatility makes it imprudent for emergency funds.
It depends on what you define as an emergency fund. If your view is that the macro economy (especially in the US) is not going well (heading into an inflation emergency), having divested into something other than dollars is the correct play here.
> not comparable at all to conventional banking
That's the point though. At least for me, I've long ago lost faith in conventional banking (aka: tradfi). This is why I put the time and effort into deep learning about DeFi.
Today, DeFi is relatively tiny and cannot support the larger asset markets. My hope is that it grows. As someone who found the internet in 1991 and watched and participated in that early growth, I don't see a reason why it can't happen again for something like DeFi.
Ignore the 'crypto scam' aspect of it all. There is a lot of positive things in 'being your own bank'. Early adopters of this risk are definitely reaping windfalls from it. Making a more general statement and not pointed at you directly, it is easy to sit on HN and shit on crypto and much harder to spend time listening to what some latchkey is trying to gently guide you towards, without being a shill.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#275Earlier quoted context omitted.
Or you can be SVB and take a lot of a haircut. Putting money you "need in a pinch" in an asset where you could take a haircut to get an extra percent or two of interest is a risk. A risk you can mitigate but still a risk.
SVB's haircut was from LONG TERM bonds. Not T-Bills.
I was about to say; if the bonds were going to mature in less than three months, I doubt that the haircut would have been nearly as substantial; I don't know that it would have been enough to save them but at it wouldn't be as cartoonishly awful as it was.
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#276Earlier quoted context omitted.
I just wish I had realized it earlier. I'd have never put any money into a 401k or the stock market. Worst performing asset class that I can imagine. Maybe some people are happy with the results they've gotten, but there is really a lot more you can do if you are willing to put the energy/time into it.
On the other hand, I'm reminded of this article I recently read: https://www.theguardian.com/technology/2022/nov/04/how-i-los... You could easily argue that this guy made poor decisions with his money, but it's also all too easy for investors to attribute their success to skill, not just a few lucky bets. In the long run, my understanding is that few things will consistently outperform plain old index funds.
Yea, that article is 100% about gambling.
Doing the research and buying a house/condo in the right area, at the right time, can easily outperform an index fund. It is probably harder to do than just plumping money into an index fund, but it is a good example here for how you can allocate your funds in a less 'conventional' way.
Nobody said that making money was easy. =)
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#277I'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…
Are there any good options to get decent APY on Eur or USD deposits in Europe?
IBKR pays interest on cash accounts with APY dependent on currency and amount of money invested: https://www.interactivebrokers.com/en/accounts/fees/pricing-...
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#278Earlier 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.
Amex Green?
https://www.americanexpress.com/us/credit-cards/card/green/
Amex is sometimes used to abbreviate American Express.
(Personally I have a American Express Blue Cash Preferred card for the 6x on groceries, streaming services, 3% on gas.)
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#279Earlier quoted context omitted.
In their terms it sounded like if they close your account for whatever reason, you can still go directly to the banks and recover your funds. They did say the funds would be temporarily uninsured at certain points while in transit (deposit/withdrawal, redistribution, etc) but that seems like a relatively small risk Is it possible they'd try to claim first-dibs on your funds that are living in other banks if they went…
Basically yes. Typically when companies/banks do this sort of pass through banking, the money isn’t actually held in a personal account at the host bank. It’s usually held in one giant account that had a “managed on behalf of many” type structure. This is legal from an FDIC perspective, but it’s held in the not-banks name (aka betterment). So if betterment goes into debt, it’s a grey area if they could use that money…
> Typically when companies/banks do this sort of pass through banking, the money isn’t actually held in a personal account at the host bank. It’s usually held in one giant account that had a “managed on behalf of many” type structure.
Here's what their terms say:
> Upon Betterment’s instruction, Betterment Securities, acting as your agent, will open one or more Demand Deposit Accounts (“DDAs”) at Deposit Banks. Betterment Securities, as your agent, may also open one or more linked money market deposit accounts (“MMDAs”) at the Deposit Banks as indicated on the Deposit Bank List. Deposit Accounts are non-transferable.
> ...if you decide to terminate your participation in the Program, you may establish a direct relationship with each Deposit Bank by requesting to have your Deposit Accounts established in your name at each Deposit Bank, subject to each Deposit Bank’s rules with respect to establishing and maintaining deposits accounts.
This makes it sound like separate bank accounts are opened for each customer, though possibly not in the customer's name initially (with Betterment Securities acting as the customer's "agent"). So maybe better than thought?
Re: Apple Card’s new high-yield Savings account is now available, offering a 4.15 p
#280Earlier quoted context omitted.
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.
It comes down to time frame. If you need the money in a short time frame, stocks/bonds are not going to have a high confidence interval in having the same or more value at the time you need it. So, say, saving for a car 3-5 years from now, probably better off putting it in high-yield savings.
But a retirement dream home 20 years from now, throw it in stocks and bonds according to an asset allocation[0] you're comfortable with.
[0] https://investor.vanguard.com/tools-calculators/investor-que...