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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

#141

Post by slg »

58028641 wrote: post #130
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.

Isn’t Goldman Sachs actually handling that money?

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.

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

#142

Post by koolba »

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) which would easily be made up by the additional interest and tax savings.

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

#143

Post by skizm »

bobleeswagger wrote: post #126
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.

> 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.

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

#144

Post by r00fus »

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…

I wonder if the $250k transfer limit can be exceeded by having a joint account? FDIC limit is $500k for couples jointly owning an account.

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

#146

Post by __turbobrew__ »

rchaud wrote: post #111
footpath wrote: post #107

Here are two manually curated lists of the currently highest yielding FDIC-insured deposit accounts in the US: https://phatwalletforums.com/topic/109/best-nationally-avail... https://www.doctorofcredit.com/high-interest-savings-to-get/ 4.15% is good, but there are better options, including with big banks like Bank of America (4.50% currently, though with an initial deposit requirement of $100k).

Good lord. $100k minimum for a 4% yield? In Canada you can get that at any bank with $100 in your account.

Yea I don’t think “any bank” will give you 4%. Just checked CIBC and there are a number of conditions and also the bonus interest only applies for the first 4 months on your first account: https://www.cibc.com/en/special-offers/smart-savings-bonus-i...

TD is not even close to offering 4% https://www.td.com/ca/en/personal-banking/products/bank-acco...

And RBC only gives higher interest rates for 3 months https://www.rbcroyalbank.com/investments/psi/hisa.html

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

#147

Post by scubbo »

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 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...

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

#148

Post by aheckler »

TradingPlaces wrote: post #135
chrisjc wrote: post #132

Earlier quoted context omitted.

> I’m moving a bunch of cash over once I set it up Perhaps I'm misreading the article, but isn't this just for Apple earned rewards, not as a general savings account?

Maybe you’re right on rereading. Unclear at a minimum.

One of the screenshots shows an "Add Money" button, so at first glance it seems like you can add funds. Also from the linked page:

> To build on their savings even further, users can deposit additional funds into their Savings account through a linked bank account, or from their Apple Cash balance.

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

#149

Post by repler »

chrisjc wrote: post #132
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 Perhaps I'm misreading the article, but isn't this just for Apple earned rewards, not as a general savings account?

No, you can add money directly to it from another bank account - such as the one you pay your apple card bill with.

You can also transfer your current rewards balance to the savings account.

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

#150

Post by cragfar »

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…

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.
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