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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

#181

Post by rybosworld »

cragfar wrote: post #150
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.

On Fidelity, not every account type has access to those high yielding core positions (I don't know why).

But you can choose to invest your cash directly into the high yielding money market funds by placing a trade.

The relevant tickets are FDRXX and SPAXX.

Do note that this is different than changing your core position.

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

#182

Post by judge2020 »

kylehotchkiss wrote: post #174

The rate is great! But how long before US switches back to a 0 interest rate policy and this plus wealthfront cash aren't paying nice rates anymore?

Most likely never. And for the immediate future, the Fed is forcing a recession with these high rates, since the influx of cheap money caused inflation and that's the main thing people want the US Government to 'fix'.

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

#183

Post by diebeforei485 »

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…

Makes sense. Interest and Daily Cash goes into the checking account (Apple Cash).

And Apple isn't catering to small business here.

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

#184

Post by adam_arthur »

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…

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...

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

#185

Post by ceejayoz »

jedberg wrote: post #176
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…

My guess is that it has little to do with FDIC and a lot more to do with them not wanting to pay so much interest on that much money.

No. They love savings accounts. It's money they can use in relatively risk-free ways that get them more interest than they're paying out.

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

#186

Post by cragfar »

ska wrote: post #162
cragfar wrote: post #140

Earlier quoted context omitted.

The larger banks simply can't offer high interest rates due to the amount of their deposits. For example, JP Morgan Chase has yearly net income of ~$50 billion. The size of their interest bearing deposits is 1.6 trillion. So every 1% rise in savings account rates costs them $16 billion a year.

Your two statements don't match up. Sounds like they can offer at least 3% more, no?

Yes they do. Do you think a company is going to set themselves for a best case scenario of breaking even? Or just take a 25% hit to profit unless they absolutely need to?

I just look at Wells Faro, and they have $900 billion in interest bearing deposits. With NI of $16 billion, just going up to 1% will wipe out 55% of profit.

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

#187

Post by rchaud »

petesergeant wrote: post #134
rchaud wrote: post #93

Earlier quoted context omitted.

One click setup isn't going to do it. If Apple is providing banking-type services, they're going to need to have support available at the Apple Store. If they don't, banks will beat them every time. Customer support for noney is not something that can be left to a chat window.

Having trouble squaring that with Wise, Revolut, Monzo, Starling, etc. I also don’t think I’ve ever visited Barclays — where I have my primary UK current account — in person ever, other than setting up the account ~10 years ago

Monzo is the only one in the list that has a banking license, i.e. legal right to take deposits and make loans. Not everyone is a digital native, even today. So when it comes to money matters, there will be a time when interacting with a virtual assistant is not going to do.

I don't visit my bank either in most cases. However, I can if I need to. That's a different kind of peace of mind compared to a e-bank that has no customer-facing physical location.

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

#188

Post by 2OEH8eoCRo0 »

whywhywhywhy wrote: post #138

Still feel this product is beneath Apple, just feels like very standard banking with an Apple brand lazily plastered over it.

They make expensive products and they make a credit card so that anybody can "afford" them. They also want your user data.

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

#189

Post by exabrial »

thoughtpalette wrote: post #9
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?

The 2% back on all touchless/apply pay integrations is what sold it for me.

Does the 2% reward only work with tap-to-pay? So no walmart or home depot?

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

#190

Post by runjake »

downWidOutaFite wrote: post #106
runjake wrote: post #56

Earlier quoted context omitted.

Bankrate is always a decent source for info. Best high-yield savings accounts in April 2023: https://www.bankrate.com/banking/savings/best-high-yield-int...

Used to be a decent source until they started letting ads take over their content. In your link you have to get past the "Featured" section and "Offers from banks you may use" section to see the actual content. Many times I've needed an extra click to get past the ads, or been completely unable to.

Thanks for that info. I use uBlock Origin, and I'm not ever seeing these ads, so I was not aware!
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