Apple Card Savings Account Receives Another Rate Increase

[jav6454]

There are 100 other services that will guide you out of cc debt, same as Apple, it's just not as handy and it's not built-in.

True, but like you stated, it's not as built-in. In other words, these other services, while they do offer help, they aren't interested in it being easily available.

Like I said, banks thrive on having you owe them money. These cards aren't made for you to use them as Charge Cards.

 

[jav6454]

Amex CEO didn't seem too interested in partnering with Apple when he was asked about it during the Goldman Sachs U.S. Financial Services Conference last month.

Amex CEO talks co-brand partnerships after Apple reports

The card issuer’s premium designation isn’t compatible with all potential card issuing partners, Amex CEO Steve Squeri said Tuesday.

www.paymentsdive.com

Also, AMEX isn't likely going to be a partner anytime soon as, from prior reports here in MR, it seems Apple also made a partnership with MasterCard.

 

[Apple_Robert]

I like seeing this kind of news. 😎 Come on 5%.

 

[bigboy29]

Would be grateful if you could jot out the math and how to steps behind your comment. It is interesting and a short primer could save a bunch of us from figuring it out wrong. Thanks.

Essentially, it goes like this; the process might be a bit weird if you never did it, but the overview is:

• Add / fund the trading account with some money (at whatever trading platform is you use)
• Once cash is settled (available for trade):
  • Look for Fixed Income trading category
  • Starting every Tuesday around 1PM central (when new ones are issued), go and check new issuance of treasuries. In Fidelity, this will be under Fixed income > New Issues > Treasury
  • Very short-term Bills will usually be in a form of what is known as "zeros" meaning - they pay 0 interest at maturity, but you buy them with a discount instead. In other words - you bid on let's say 15 bills that mature end of January 2024. Seeing that each bill is $1000 in value, you are bidding on $15,000 of bills. When the auction settles (this takes a few days) - you will see $15K of bills deposited into your account but you would have paid 15K-the interest (so you just bought $15K for let's say $14,940)
  • End of January 2024, bills will mature and the system will "sell" your bills and deposit $15K as cash into your core cash account.
  • So at the end of that one month, you have your $15,000 + $60 (the discount). It is this $60 that represents the yield of ~5% over one month.
  • Rinse and repeat. Right now, I just looked and bills maturing 02/22/2024 can be had with the yield of 5.364%.
  • If you extend your investment period and want to go up to notes that mature in few years or whatever, they will usually not be zeroes, but you will buy $15K in notes with $15K of cash and will then get interest (also known as coupon) deposited into your account semi-annually (typically)

 

[GDF]

The timing is a bit odd, since the Fed is expected to start cutting rates as early as March. But there are other accounts that pay more than 4.35%, so perhaps Apple wants to attract as many deposits as possible for a future credit card partner.

I would not be so sure they will cut rates yet. Today’s jobs report could eventually cause another rate increase. So hard to predict in this environment. Food prices also need to come down or inflation could rear its ugly head again, especially if gas prices were to go up too.

 

[JBGoode]

Please Apple don’t raise again. Every time you do, it is news and endless posts about every place that pays more

Who's forcing you to stop, read, and make this post? You're the only one to blame if this upsets you.

 

[Dlwnova]

Not sure why everyone is so excited about this rate or even 5% rates. After taxes you’re under 3%. There are other ways to have liquidity and a better rate while keeping more in your pocket and not giving it to the government. Let’s not even discuss inflation and you’re losing money, just not on paper. But hey…you do you. <insert eye roll>

 

[crazymac]

Wealthfront is my goto at 5% APY plus I can move money to different banks within a day or two. Apple Card is my backup during travel or I need to separate my expenses for my wife. 😉

 

[Nihilvor]

Not sure why everyone is so excited about this rate or even 5% rates. After taxes you’re under 3%. There are other ways to have liquidity and a better rate while keeping more in your pocket and not giving it to the government. Let’s not even discuss inflation and you’re losing money, just not on paper. But hey…you do you. <insert eye roll>

I'm not sure that most people are paying 40% in taxes on their interest gains. It's certainly not one of my problems.

If you're in that high of a tax bracket, you're better off with investing in something like SNSXX, but that might be what you were referring to anyway.

 

[GDF]

Not sure why everyone is so excited about this rate or even 5% rates. After taxes you’re under 3%. There are other ways to have liquidity and a better rate while keeping more in your pocket and not giving it to the government. Let’s not even discuss inflation and you’re losing money, just not on paper. But hey…you do you. <insert eye roll>

Still better than letting it sit in the bank for almost 0%.

What do you recommend that is better? 5.5% is really good that some of these banks offer and just so easy to do. The other stuff just seems confusing.

 

[Rafagon]

And it has increased again!

To 4.5%!