Goldman Sachs Overhauls Apple Savings Procedures to Cut Down on Withdrawal Delays

[MacRumors]

Apple Savings account partner Goldman Sachs has changed its system to prevent Apple Card customers from running into extended delays when attempting to withdraw money, reports The Information.

When the Apple Savings account launched earlier this year, there were complaints from customers who had long wait times when trying to withdraw money from their accounts. Some people had to wait weeks for money transfers, and in some cases, money disappeared between banks. Goldman Sachs at the time said that the transfers were delayed because of security flags that were meant to help protect user accounts.

Goldman Sachs has since adjusted its system to make it less likely to flag legitimate customer withdrawal requests as problematic. According to The Information, when a customer with a large amount of money attempts to move a small portion of their cash to an outside account, Goldman Sachs will be less likely to flag the transaction.

There is also now a cap on the number of days that a withdrawal should take, and Goldman Sachs is prioritizing communication with customers who have flagged transactions to ensure the communication issues that occurred earlier this year do not repeat.

Goldman Sachs in July provided one-time $100 credits to customers who had experienced poor customer service as a gesture of good will.

The Apple Savings account has been offered since April, and it is available solely to Apple Card holders. The account has a 4.15 percent interest rate on Daily Cash and other deposits.

Article Link: Goldman Sachs Overhauls Apple Savings Procedures to Cut Down on Withdrawal Delays

 

[jooish]

Kind of annoying that Goldman Sachs has savings accounts that pay 4.40% APY, but not for Apple...

 

[jz0309]

good to see

 

[IIGS User]

If your balance is $152.37, you’re kinda hosed.

 

[rKunda]

I had some large, lengthy delays. My credit must have been lost in the mail lol

 

[sw1tcher]

Kind of annoying that Goldman Sachs has savings accounts that pay 4.40% APY, but not for Apple...

Offering Apple Savings customers a higher yield would encourage more people to sign up for an Apple Card and the Apple Savings account which would translate to higher payouts and more losses for Goldman.

If reports are true about Goldman wanting to end their partnership with Apple, why raise rates for the Savings account?

 

[Sheepish-Lord]

Now raise the APY to be competitive again with others like SoFI, Amex, Cit, Marcus, etc.

 

[chrono1081]

Mine always transferred instantly luckily but it sucks for those whose money didn't.

 

[maternidad]

If your balance is $152.37, you’re kinda hosed.

You can have more than one bank account

 

[smithrh]

Look up the phrase "know your customer" for some background on what's going on here - at least some of it.

 

[lkrupp]

Kind of annoying that Goldman Sachs has savings accounts that pay 4.40% APY, but not for Apple...

If you look into this you'll find those higher rates are tied to minimum balances and monthly fees if the balance falls below the minimum. The Apple savings account has no such restrictions. The are typically money market accounts.

 

[Mr. Dee]

The question I am gonna ask is, why even put it in there in the first place? Its a savings account, not a checking account. If your intention was to always pull it out, then you shouldn't have used it in the first place. My savings is meant to stay there and work for me in the long term.

 

[lkrupp]

What I saw in the Apple Discussion Forums were people who deposited a large amount of money in the account and then tried to withdraw most of it the next day for reasons only known to them. Of course this raises a huge red flag in there banking industry about money laundering and the law requires a delay when the transaction is over $10K.

 

[sw1tcher]

If you look into this you'll find those higher rates are tied to minimum balances and monthly fees if the balance falls below the minimum. The Apple savings account has no such restrictions. The are typically money market accounts.

jooish is likely referring to the Marcus by Goldman Sachs high yield savings account offering a 4.40% APY with NO account minimum or monthly fees.

It literally says "No Fees. No Minimum Deposit."

 

[kingtj1971]

The question I am gonna ask is, why even put it in there in the first place? Its a savings account, not a checking account. If your intention was to always pull it out, then you shouldn't have used it in the first place. My savings is meant to stay there and work for me in the long term.

Generally, I agree with you here. But I think there's also the matter of people setting this up more because of the feature where it makes a place for your daily "Apple cash" to fall, when you earn the cash back on your Apple Card purchases.

A lot of people probably liked the idea of their daily cash going into some kind of interest earning account instead of accruing in an "Apple cash" balance that you'd typically have to take extra steps to transfer back into your checking account to use it.

I know I set my Apple savings account up, putting as much money as I could spare into it, because the initial interest rate they advertised it earning was pretty high. They've already dropped it back from 4.65% to 4.15% though. You can get 4.5% from either Citizens or SoFi right now, with a 1 cent minimum balance required. And assuming you can put at least $1000 in, Upgrade Premier Savings pays 5.07%.

 

[newyorksole]

The question I am gonna ask is, why even put it in there in the first place? Its a savings account, not a checking account. If your intention was to always pull it out, then you shouldn't have used it in the first place. My savings is meant to stay there and work for me in the long term.

yeah that kind of baffles me too that people need to constantly move/draw money from their savings lol like uhhh what’s going on y’all???

 

[ikramerica]

The question I am gonna ask is, why even put it in there in the first place? Its a savings account, not a checking account. If your intention was to always pull it out, then you shouldn't have used it in the first place. My savings is meant to stay there and work for me in the long term.

Well, that’s not the only way to use a savings account. You can also put a quarterly payout in for example, then transfer 1/3 every month to checking so that you are earning interest on that money.

But constant transfers are against the spirit of a savings account. If you do too many in a month at Chase, theh gently remind you that a savings account is not intended for more than 6-10 transactions a month.

 

[bwhitta]

These jokers need to exit consumer banking.

 

[sw1tcher]

The question I am gonna ask is, why even put it in there in the first place? Its a savings account, not a checking account. If your intention was to always pull it out, then you shouldn't have used it in the first place. My savings is meant to stay there and work for me in the long term.

Direct deposit paycheck into a high yield savings account because checking accounts offer terrible rates in comparison. Then transfer funds from savings to checking when needed, usually to pay off monthly credit card balance. Why keep funds sitting in a low yielding checking account when you don't have to?

 

[Boeingfan]

There is also now a cap on the number of days that a withdrawal should take

Days? DAYS? Why on earth does it take DAYS to make a withdrawal in the US? Is GS still using Windows 95?

 

[mattoruu]

If you look into this you'll find those higher rates are tied to minimum balances and monthly fees if the balance falls below the minimum. The Apple savings account has no such restrictions. The are typically money market accounts.

What? That’s not true at all. There is no minimum balance requirements and no monthly fees. I have a Marcus (Goldman Sachs) savings account and it’s just a (currently) 4.40% APY (for all balances) with no minimum balance fees.

 

[mattoruu]

The question I am gonna ask is, why even put it in there in the first place? It’s a savings account, not a checking account. If your intention was to always pull it out, then you shouldn't have used it in the first place. My savings is meant to stay there and work for me in the long term.

There is little difference between a savings account and a checking account nowadays. The Federal Reserve lifted the “Regulation D” savings account withdrawal limit years ago (which imposed a six withdrawal per statement period limit for savings accounts).

Regulation D was primarily why people used savings and checking accounts differently. You very specifically needed a checking account because your savings account was arbitrarily-limited by Federal Reserve regulations. But now you don’t necessarily need two separate accounts.

Note: Some savings accounts do still have the six withdrawal limit, but it’s not required by Fed regulation anymore. If your savings account still has the six withdrawal limit, it is because your bank/credit union chooses to have the limit.

 

[ghanwani]

As a reminder, if you got $100, it is likely to be taxable and show up on a 1099.

 

[HDFan]

Days? DAYS? Why on earth does it take DAYS to make a withdrawal in the US?

Bank transfers in the U.S. typically take 2-3 days. You can do a wire transfer in 1-2 days if you are willing to pay a $10 fee, at least at my banks.

 

[Amazing Iceman]

As a reminder, if you got $100, it is likely to be taxable and show up on a 1099.

Still, a gain for the recipient.