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Apple Card to Offer Savings Account for Daily Cash
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Yes. I get everything you are saying. But I have my emergency in a low APR savings account as it's convenient and through my bank along side of my checking account. Stupidly I know but I've been comfortable with this. $40,000 gets me about $8.00 a year interest. With this account Apple is announcing I could potentially earn over $800 a year pluuuuussss have all my apple cash automatically added to it.
Yes I could have another high yield savings account through American Express or some other bank but it was never comfortable and convenient for me. This I feel will be.
I have other investments not related to my emergency savings such as mutual funds and 401K, as well as my home by the way.
Yeah exactly. I mainly just keep it there because it makes it easy for me to glance how much Daily Cash I'm earning. There's really no reason to move it to my bank account either, it's just gonna sit there too. ¯\_(ツ)_/¯
I missed the detail that if you are an Apple Card user they will allow you to move outside funds into this new Apple Card / Cash "high yield savings" account, that makes it a reasonable choice if you are in the market for such an account. I do agree for the interest to be meaningful it needs to likely hold more than just ones yearly Apple Cash, but like you said you would be funding it with $40k you have as emergency funds elsewhere in a lower yield savings account so that makes sense. As for me I already have numerous investments held at Vanguard, one of which is my emergency fund in a well performing Money Market so this doesn't help me all that much. Smart move getting that $40k into something that generates reasonable interest if only to prevent inflation from robbing it so quickly of its value.
the risk is very, very close to zero with money market accounts and the fees at a brokerage like vanguard are extremely low (single digit basis points) so I am still outperforming to the tune of my extra couple cups of coffee ;-) like you said. for me it makes sense because I have numerous other investment accounts at vanguard so having everything in one place is logical. I missed the point that someone else brought up that you can move OUTSIDE funds into this new Apple Card / Cash high yield savings account so if you have an existing emergency fund in a low yielding account or plan on funding this account with money beyond just the Apple Cash from your Apple Card purchases I think it makes sense, I just keep coming back to the point that if the only thing going in this account is your Apple Cash from Apple Card purchases it won't move the needle on ones financial life in the way Apple implied.
I have been thinking recently that I need to do something. My savings account is still nearly 0%. My investments are well below 0%. I'll see what this account looks like.
My top 3 cards are the Apple card, when it pays 2%, my Citibank DC card (2% back), and my Amazon Prime card (5% back on Amazon purchases). All are cash back. I got rid of my AA card when I finally used up most of my miles. Much less travel, so I value flexibility in airlines more.
It is actually worst than that. The $1400 is in there probably only averages 700 during the year, so $14 in interest.
Putting your cash back into the savings account, if done automatically, is just a way to encourage savings by people who may not otherwise save money. I've seen debit card rewards where the cash back goes into a savings account.
I'm cynical (and I love Apple, just look at my signature below my post) but I can't help but feel Apple knows that by encouraging more and more use of their Apple Card and associated accounts it just leads to more and more purchasing of Apple products when its just a click away to use your accumulated Apple Cash + latte's worth of interest to buy the latest and greatest widget, hopefully from Apple. If people save and don't touch their money then it leads to improved financial health but I can't help but feel encouraging you to save in such an easily visible and *accessible* vehicle like Apple Cash / Apple Wallet / Apple Savings Account is a recipe to spending for many folks. Having my emergency fund tucked away at a place like Vanguard, a site I intentionally don't view or use daily, and needing a few days to access the funds there all serve as a reminder of what I am doing with that part of my finances, vs. the Wallet app which just like a real life wallet isn't a place you hold much more than your credit cards and some petty cash.
Marry me, get US citizenship, and then we can even have a joint Apple Card account. 👬🏻💞💳💦I love Apple Card updates. Love to be a part of one someday.
This is Goldman Sachs attempt to take online savings accounts from niche to mainstream by linking it with their credit card and the iPhone’s Wallet App. The account will surely be the Marcus by GS high yield savings account product that currently yields 2.15%. By making account creation just a couple of clicks away on the iPhone they are very likely to see their number of accounts increase by orders of magnitude.
It is a move by an investment bank to go after the savings account market that traditional banks have had all to themselves. Others like Amex are also going after this market, but the iPhone linkage by GS is pretty clever. Hopefully it will lead to higher interest payouts for all savings accounts as the competition increases and traditional banks try to defend their deposits.
It is a move by an investment bank to go after the savings account market that traditional banks have had all to themselves. Others like Amex are also going after this market, but the iPhone linkage by GS is pretty clever. Hopefully it will lead to higher interest payouts for all savings accounts as the competition increases and traditional banks try to defend their deposits.
Apple and GS have to get more serious in this area if they want to start holding significant customer assets that customers will want to track. They have shown signs of this with Mint already being able to and I think Personal Capital saying they will be able to track Apple Card soon but I agree this is the weakest point by far.
The savings account perked my ears. Along with Apple Cash and a Savings account, we’re on the cusp of being able to ditch banks and go exclusively Apple.
If it’s possible to direct payments via Square or CashApp to this savings account, then you wouldn’t need a bank. The remaining wrinkles is the inability to accept eTransfers and cheque deposits if that’s how you get paid. As a business run on Square, this could be a solution to banking.
Now, I just wish Apple Card would launch in more countries.
If it’s possible to direct payments via Square or CashApp to this savings account, then you wouldn’t need a bank. The remaining wrinkles is the inability to accept eTransfers and cheque deposits if that’s how you get paid. As a business run on Square, this could be a solution to banking.
Now, I just wish Apple Card would launch in more countries.
Yea even a mil at 2% is $20k a year. If I already had a mil, $20k would be pocket change. Now real life me would gladly take $20k
Does TMo penalize you for autopaying with CC though? VZW will kill the AP Discount unless you use their card or Debit/Bank Account. Unless AC is also an exception I don't know about.
Pocket change? Someone who spent their whole life saving up a million dollars for retirement with certainly disagree with that. Heck, 20K a year after the house is paid off and the kids are on their own wouldn't be a bad retirement in a lot of places.
Yea I think the more important this is having money saved since the interest over those five years is around $20. But even $960 is toast from a minor emergency
Yea it would be the money you saved that would mean more than the interest. Interest is just a tiny bonus.
I agree is principle. But in the scenario we were discussing, you could possibly live a comfortable retirement on just the interest.
Plus you could just finance the device and keep the money in the account and use it to pay the installments and make a little interest. And if you want to upgrade, you can empty it to pay the phone off and trade.
No penalty. Apple Pay is an option for their auto pay system and I just confirmed in my history that I get 3% Daily Cash for my entire monthly bill amount.
How do people find a way to complain about free things even? If it is higher than 0% (current rate), it is a positive no matter how "small" it is.