I don’t watch Cramer or the other blowhards. I look at numbers. If inflation continues cooling as it has the last 2 quarters it’s a matter of when not if the FED lowers rates. Personally I’m in the higher for longer camp for what it‘s worth.
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Apple Savings Account Interest Rate Increases to 4.50% APY
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I don’t watch Cramer or the other blowhards. I look at numbers. If inflation continues cooling as it has the last 2 quarters it’s a matter of when not if the FED lowers rates. Personally I’m in the higher for longer camp for what it‘s worth.
No one seems to know what they’re going to do. I kept hearing something would happen by March, but now I’m hearing six months. Who knows? 🤷♂️
Very interesting that Apple / GS has moved up their rate 3 times in last 2 months, after not moving it up at all since inception. Most other banks that moved up over time did so in relative lock-step with the fed increasing the fed funds rate (maybe with a little lag). The last increase in the fed funds rate was in July 2023 - generally no other HYSA has increased its interest rate since then. But Apple has done so in Dec and Jan, after it's been widely reported that Goldman is looking to move on from its partnership...
Maybe a lot of ppl have been pulling their money after the Goldman announcement, so this is a way to try and entice ppl to stay (or join?)
Maybe a lot of ppl have been pulling their money after the Goldman announcement, so this is a way to try and entice ppl to stay (or join?)
Has there been any indication of Apple Card being available in countries outside of the U.S? (Australia)
absolutely zero indication or speculation.
there may have been something buried in some code indicating that some financial product may be going to Canada or U.K., but I could be totally making that up.
I’m glad you put in the Edit - fair enough. There are so many people who will read a sentence or two about others’ successes and invest without any clue about risk, rewards, timeframes and how the market really works. In a careful and considered approach to investing that all of the greats such as Buffet and educated financial professionals espouse, the fact X or Y has gained 27% in 3 years is, at best, useless information.
At the end of this article, it mentions that Apple allows users to deposit up to $250,000 - I was just curious if there is actually a limit in place that either Apple or Goldman Sachs has set because I’ve never heard of a bank actually putting a hard limit on the amount of funds that a user can deposit and was curious if you are referring to the amount insured by FDIC (which, set in 2008 is also $250,000)
I just did a quick inflation calculation on www.bls.gov/data/inflation_calculator.htm and $250,000 in 2008 is worth $364,777.77 today so hopefully FDIC increases this amount so that more funds are not only insured, but Apple Savings account users are also allowed to put more money into their Apple Savings (If Apple/Goldman Sachs are in fact setting limits that are tied to the FDIC threshold)
I just did a quick inflation calculation on www.bls.gov/data/inflation_calculator.htm and $250,000 in 2008 is worth $364,777.77 today so hopefully FDIC increases this amount so that more funds are not only insured, but Apple Savings account users are also allowed to put more money into their Apple Savings (If Apple/Goldman Sachs are in fact setting limits that are tied to the FDIC threshold)
In Apple/GS terms they do set a limit of $250K which purposefully lines up with the FDIC. Anything above $250K and they send you a check.
Interesting
I’ve never heard of a bank doing that so this is the first time that I’ve seen a bank set any kind of limit on the amount of funds that can be deposited
It could be for technical/security reasons but they probably have figured that anybody that needs to deposit more than that will just go with a higher-yielding savings account anyway
Well, I’ve actually had the account open for 6 years and I just shared the past 3 years because 3 years ago was the last time I put any money into it. But I’m taking another look and I’ve had an annual rate of return of 8.1%. Compounded over 6 years, the total return has been 58%
Now look, anyone who does investments like this has to be in it for the long haul. Have patience and diligence, no panic buying or selling. I forget it’s even there sometimes. Treat it like a slow cooker. Set it and forget it. But the S&P 500 is up nearly 1000% since 1994, so it has a pretty good track record.
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Pretty difficult without partnerships with an investment firm that has global reach and even then it’d be difficult for most of the areas outside of the big 4.
Inflation has fallen back down to 3.4% to 2023, which is a fairly normal rate. But companies keep using "inflation" as an excuse for raising prices because the average consumer has no clue that things are back to normal in the financial sector. Interests rates are high, sure, but being at like 2% forever was not sustainable. Rates are SLOWLY falling back to a more "normal" level soon as well.
That's for long term use and subject to market volatility. Unless you have over $1M+ invested, and as you come towards retirement age 65+, you put savings in more steady returns like the Apple Savings account.
Inflation rate used by economists is very different from consumer prices. What we pay for everyday essentials such as food, housing, energy (heating/cooling), and transportation has gone up and continues go up at a faster rate than in the past. For middle class Americans, consumer prices have risen to a higher percentage of their net income after taxes. I'm happy with the Apple Savings account because it is very easy to add money, and take out, providing a good rate of return.
This past year I became much more aware of my savings, because… it’s Apple Savings, and naturally, everything about Apple gets more attention. Media coverage of rate increases, increased visibility of my balance in the Wallet App, and Daily Cash deposit notifications all contributed to the dopamine hits from saving money.
To be honest, if the FDIC only insures $250K then I wouldn’t keep more than that because it would unsecured. Additionally, anyone that has more than the FDIC amount either has investments or a separate account. Sometimes having too much liquidity is a problem.
Apple Savings should be just one of the places you keep your money, and always keep enough money in your Apple Savings to cover a few months of your Apple Card bills. Let's say, hypothetically, your regular bank unbanks you and denies you many of the ways you go about paying for your life. You can still pay your Apple Card bills by first transferring to Apple Cash and then paying your bill from that.
That's pretty good!
I keep six months of earnings in liquid savings and currently have it in a 360 savings account at 4.35%. While the .15% is nice, I don't think it's worth transferring.
Everything beyond six months is moved to my investments.
I keep six months of earnings in liquid savings and currently have it in a 360 savings account at 4.35%. While the .15% is nice, I don't think it's worth transferring.
Everything beyond six months is moved to my investments.
You do understand that the actual inflation rate is only 3.7%, don't you? And the unemployment rate under the last administration peaked at 14.8%. Time to look at actual, legitimate economic statistics from the federal reserve, the US treasury, and the bureau of labor and statistics for once.
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