Apple Card Savings Account's Balance Limit Increased to $1 Million

[3304614]

Lol. You people are so cute to think “it’ll never happen here!” Hilariously sad.

It‘s not that it’ll never happen here. It’s that it has already happened here. We had multiple bank runs in the United States less than 12 months ago. And the FDIC insured balances were all covered. All of them. And even some of the non-insured balances were covered.

The FDIC insurance worked. The FDIC insurance worked so well that you have seemingly already forgotten, lol.

 

[Earendil]

Half of you need to RTF article, and the other half of you need to stop correcting people and tell them to RTF article. Just an idea

 

[Robert.Walter]

Lol. You people are so cute to think “it’ll never happen here!” Hilariously sad.

You people are so cute thinking it will always happen here. And if it does that you’ll be like The Postman or a character in The Stand. Hilariously ridiculous.

 

[svish]

Good to see an increase in limit. Don't know how many will be keeping larger amounts in Apple savings account.

 

[JoeG4]

I figure this is like the average user's casual bar hopping budget for the year around these parts, right?

lol jk

 

[Surf Monkey]

Why do you (and others) keep saying “Apple Cash”?

And that’s a rhetorical question. I know why. It’s because you have mistaken the Apple “Savings” product (provided by Goldman Sachs Bank USA) with “Apple Cash” (provided by Green Dot Bank).

This article is about “Savings”, not “Apple Cash”.

Either way. Point stands.

 

[treacher]

This is great news. Apple users are high-value, so 1 million is nothing to us. I think most of us have that easily. It's almost like a college degree, extremely common. Thanks for raising it to a more realistic amount.

 

[legatoboy]

What brilliant genius is keeping $1 million in Apple Cash?? Weirdly, this kind of sounds like a money laundering scheme to me.

Apple Savings Account. Savings account.

 

[MacCurry]

I'm not sure why someone would go over 250K when we don't know what institution is going to take over your account.

Right now it's GS, which will likely be bailed out by the US government if it went under. Keep earning the safe 4.5% until the transition happens, then move the $1M USD somewhere else.

 

[Hopefully Smarter]

three finger louie is offering up to $2 million and he won’t burn down your bodega.

 

[webkit]

This nonsense is worthless when shtf. When the bank run happens, no one is going to be covering deposits

It's not nonsense. There have been over 500 U.S. bank failures in the last 20 years with FDIC often covering costs/losses through its Deposit Insurance Fund. Two that got a lot of attention a year ago were the failure of Silicon Valley Bank and Signature Bank.

 

[VisceralRealist]

It‘s not that it’ll never happen here. It’s that it has already happened here. We had multiple bank runs in the United States less than 12 months ago. And the FDIC insured balances were all covered. All of them. And even some of the non-insured balances were covered.

The FDIC insurance worked. The FDIC insurance worked so well that you have seemingly already forgotten, lol.

Exactly.

What's cute is people thinking that the government won't protect its wealthiest citizens. Lol. That's like the one thing you can actually always count on.

 

[Onelifenofear]

Can you just not open multiple accounts to be covered?

 

[fredn]

That's one million. How about the 2nd Million?

 

[Surf Monkey]

Apple Savings Account. Savings account.

Point stands.

 

[skeptech]

I know it’s hard to envision a use case where someone would need to keep up to a million in cash, but there are situations where it makes sense. I currently have $800K spread out over 4 high-yield savings accounts with one of those being a maxed out Apple Savings account. I am in a state of transition and want that money available to me inside of a week’s notice for a possible real estate purchase, should the right one come along.

It’s not a long-term solution, but I need the money to be highly liquid and available.

The Apple Savings account is not "highly liquid and available" because it has very significant transfer limits:

Apple Cash Transfers
You may deposit or withdraw funds from your Account into or from Apple Cash. Transfers must be at least $1.00 and can be no more than $10,000. You may transfer no more than $20,000 per rolling 7-day period. We may place additional limits on the amount and frequency of transfers for the security of your Account.

See https://www.goldmansachs.com/terms-and-conditions/Deposits-Account-Agreement.pdf

 

[aidler]

The Apple Savings account is not "highly liquid and available" because it has very significant transfer limits:



See https://www.goldmansachs.com/terms-and-conditions/Deposits-Account-Agreement.pdf

I believe „Apple Cash“ is different from the „Apple Savings Account“ we are talking about here.

 

[JBGoode]

Point stands.

Does it? It’s a savings account that can be funded from any bank, not just Apple Cash. You don’t really have a valid point, just some weird conspiracy theory.

 

[Surf Monkey]

Does it? It’s a savings account that can be funded from any bank, not just Apple Cash. You don’t really have a valid point, just some weird conspiracy theory.

I do have a point. Here it is:

Putting a million dollars into a savings account is a highly questionable move that most people with a million dollars wouldn’t do.

As to the “conspiracy theory” perhaps you need to read my post for content. I said WEIRDLY and it SOUNDS LIKE. I did NOT assert that it IS a money laundering scheme. Just that it WEIRDLY SOUNDS LIKE ONE.

I think most people reading the thread can deduce the meaning of my comment without jumping to the extreme conclusion that I’m accusing Apple of money laundering.

This place. I swear.

 

[AF_APPLETALK]

Remember, the FDIC insurance limit is $250K per depositor at a given institution. If you care about this insurance, never put more than $250K in one account. You can have multiple fully insured accounts at a single institution, as long as the name (or combination of names) differ.

Good point.

I personally use Betterment high yield. It has a higher yield (by .25%) than this, and they guarantee up to 2mil by spreading the deposits across several partner banks.

I guess this offering is good for convenience, but it's not great compared to what you can get elsewhere.

 

[nylonsteel]

i just feel better having that 1 million in a stock trading account vs. 4.5% savings account
the 4.5% is taxable
too bad fdic doesnt cover to a nice round number like 1 million

 

[supergt]

FDIC insurance is largely irrelevant for the biggest banks like Goldman Sachs that are simply too big to fail. If a bank like Chase or GS fails and deposits aren’t guaranteed, we will have much bigger problems than worrying about money to buy stuff. Think end of civilization type problems.

 

[aricG]

Am I missing if and how the account will be insured beyond the FDIC standard $250,000 on accounts?

 

[3304614]

FDIC insurance is largely irrelevant for the biggest banks like Goldman Sachs that are simply too big to fail. If a bank like Chase or GS fails and deposits aren’t guaranteed, we will have much bigger problems than worrying about money to buy stuff. Think end of civilization type problems.

JPMorgan Chase is too big to fail. But Goldman Sachs Bank USA (the Goldman Sachs subsidiary that provides the “Apple Card” and “Savings” products) definitely isn’t too big to fail. Goldman Sachs Bank USA is relatively small (compared to JPMorgan Chase and its ilk).

It would be news Goldman Sachs Bank USA it failed, but (since the deposit limit was only JUST raised above the FDIC limit), if it were to fail today (for example) almost all accounts would be covered. It just wouldn’t be a huge deal (in terms of FDIC insurance).

And even if JPMorgan Chase did fail, it wouldn’t be the end of civilization. We have recent history as our guide with the 2007-2008 financial crisis. The 2007-2008 financial crisis was awful for the world economy (and for all of us who have to function in that economy), but civilization (such as it is) still exists.

We also have the even more-recent failure of Credit Suisse (just last year). That was a massive failure. And yet… civilization is still around.

 

[3304614]

Right now it's GS, which will likely be bailed out by the US government if it went under. Keep earning the safe 4.5% until the transition happens, then move the $1M USD somewhere else.

That’s not what barkomatic was referring to. At least I don’t think it was.

I think what barkomatic was referring to is that Goldman Sachs is actively looking to get out of consumer banking. Goldman would like to sell its consumer banking division. But we (of course) have no idea who Goldman will sell its consumer banking division to. It could be sold to a bank that you already have an account with.

Let’s say that other bank is called “ABC Bank”. And let’s say you already have an ABC Bank single-owner savings account that is exactly at the $250,000 FDIC limit. If ABC Bank were to acquire your $250,000 single-owner savings account from Goldman, then that would put you over the FDIC limit through no fault of your own. You were insured at two separate banks for $500,000 total, but now you are only insured for $250,000 total at the one bank.

I think that was what barkomatic was getting at. But if I am mistaken, please excuse me for my mistake.