Apple Savings Account Interest Rate Increased to 4.25% APY

[Eric Idle]

It's decent, and I like Apple Pay, Apple Card, and the Apple Savings account. But there are money market funds paying 5.30% and even higher. In the world of finance, 100 basis points is an enormous spread -- enough to make enormous profits.

Heck, anyone servicing this account could simply take these deposits, buy one-month T-Bills at the open market auction, and pocket a very healthy profit for executing a kindergarten-level trade requiring zero skill, and nearly zero risk.

Yeah! For those who have $100,000 in cash, they could earn an entire $83 for that month. Those who have $10,000 can earn $8.3 dollars leveraging that extra 1% in interest rate.

 

[Eric Idle]

I’m assuming this is why Apple ditched them.

Wrong. Goldman Sachs is ditching Apple.

 

[Robert.Walter]

Wrong. Goldman Sachs is ditching Apple.

Wrong. GS is ditching consumer banking

 

[AAPLbuyback]

Isn’t the 5% is after expenses?

No

 

[Robert.Walter]

Laughable. What part of GS deciding being Apple's bank is not worth doing can't you understand?

The part where GS decided being in its own bank, Markus, is not worth it and has decided to bail on that Mr smarty pants.

 

[unibility]

Any one care to gander why this is happening especially when Apple and Goldman Sachs partnership will end sometime in the future?

 

[splifingate]

Any one care to gander why this is happening especially when Apple and Goldman Sachs partnership will end sometime in the future?

Banks create money from the monies we store in their accounts; they really want to keep us holding our monies in their accounts (e.g., banks are enticing us to store monies in accounts of their holding, and--given the fact that other 'banks' are offering 1%+ more on our prospective holding--ours are attempting to entice us to not withdraw said monies by increasing our 'return').

I opened my first Savings Account in 1982 . . . the rate-of-return was 5.2%

My current "Bank" offers a ~1.3% return on their regular 'Savings Account'.

All this perkage&posturing has more to do with "now" than with "future".

 

[stephenschimpf]

Any one care to gander why this is happening especially when Apple and Goldman Sachs partnership will end sometime in the future?

This has happened several times over the last year or two. I get a message from one online bank telling me my rate has been increased, and soon thereafter if not the same day, other banks tell me my rate has increased as well. Not all the rates are the same, but when one bank raises your interest rate, the others follow.