With that kind of cash just get yourself some local Municipal bonds... you can get 4.50 - 5.00 % bonds right now and any interest is totally tax free..... In addition when rates inevitably go down next year your bonds will be worth a premium if you sell them.... Any money made on the sale of the bonds is capital gains and will be taxed though. tax free is only on the interest earned.
I think the 5 years talk is not for regular bills which will be paid by monthly income, nor for emergency funds (for emergencies only!), but for future large expenses like a car purchase, down payment, kitchen remodel, etc. You might not want to invest that expecting to pull it back out in 1-3 years, because it could be tanked when you want to use it. That type of sinking fund is a great match for a high yield account like this. OR if you want to split the difference on risk-aversion, you can use a conservative Roth IRA for slightly higher returns. Pull out the contributions when you need them, and leave the earnings there for some tax-free retirement income. That's still a small gamble though.
www.treasurydirect.gov
It isn't there. It is under your Apple Card "..." menu.
The APY is 4.15% the rate is 4.07%. The difference is the effect of compounding. Basically every day you earn 0.0113% interest (4.07 / 360), but with compounding over a year the yield is 4.15%.
The rate is good compared to most, but for those with high balances the CitBank 4.75% is still significantly more. Would be great if they offered a higher tier apy for those with a higher min balance.
Apple today announced that the long-awaited Apple Card Savings feature is available starting today with an initial APY of 4.15%. The savings account has no fees, no minimum deposits, and no minimum balance requirements.
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The feature allows Apple Card users to open a high-yield savings account from Goldman Sachs in the Wallet app on their iPhone and start earning interest on their Daily Cash balance. Users can also earn interest on personal funds deposited into the savings account through a linked bank account, or from their Apple Cash balance.
To open a savings account in the Wallet app, users will tap on the Apple Card, tap on the circle with three dots at the top of the screen, tap Daily Cash, and select Set Up Savings. Once the account is set up, all Daily Cash received from that point on will be automatically deposited into it and start earning interest. If they prefer, users can choose to have Daily Cash added to their Apple Cash balance instead at any time.
Apple Card Savings allows a maximum balance of $250,000, and balances are insured by the FDIC. To access funds stored in the account, users can transfer money to their Apple Cash balance or to a linked external bank account. There are no fees for withdrawals.
Apple Card Savings requires an iPhone with iOS 16.4 or later and is available to U.S. residents who are 18 years of age or older. Apple has published a support document with additional information about the feature.
Article Link: Apple Card Savings Account Available Starting Today With 4.15% Interest Rate
I think you are the one mistaken. Using a credit card has saved me a ton of money. Renting a car, my Costco card gives me insurance for free. My Costco card adds 2 more years of warranty to any product purchase with 1+ year manufacturer warranty. I once saved $660 on a dead max book Pro that was 2.5 years old because it was bought with a Costco Visa card. I have already made over $600 in Apple Cash via cash backs. I have paid $0 in interest or fees.
Wait why is it any different than AMEX? Can’t you link your credit union account inside Apple Card/Savings settings and then initiate the ACH transfer?
Yes, just add your account in Apple Card/Savings settings, then do Add Money and select that bank account to initiate the transfer.
Sigh. The interest rate isn't "down to 4.07%". You're confusing the annual percentage yield with the interest rate. A 4.07% interest rate compounded daily yields a 4.15% annual percentage yield.
You're right, if you're worried about your credit score. I think someone like him would fall under the Dave Ramsey philosophy, who says (in most instances) to screw credit scores. Something like:
