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

[Amazing Iceman]

Yeah, just think of uncle Sam’s share and don’t spend all of it.

That would require a second savings account just for Uncle Sam.
I don’t understand this:
Why the name “Uncle Sam”?
Usually Uncles give tips to their nephews.
This uncle is a Scrooge that takes money from his nephews

 

[Boeingfan]

Lots of extra admin burden on both sides of a transaction for handling cash. Plus greater risks of loss and mistakes.

Don’t you have any credit cards down there with no fees that provide rebates or loyalty rewards? If there are and you’re not taking advantage of that, you are doing finance very wrong.

I’m sure they can handle the ‘burden’ otherwise they shouldn’t be in business. Credit cards are an American institution which means you always live in the red, when in fact to do finance right you should live in the black and within your means. No credit cards here, no debt thank you very much.

 

[PrayForDeath]

Investing in US treasuries makes far more sense than these accounts

• ~5.5% return rate
• Exempt from state/local tax

 

[3304614]

Do you actually get a cash discount? If not then doesn’t seem worth it.

Not a cash discount per se, but specifically no extra fees. If the bill says (for example) ¥35,000, then ¥35,000 is exactly what I would pay in cash. If I were to pay with credit card then I would also have to also have to pay the +3.3% (or however much) in credit card processing fees. Someone has to pay Visa’s credit card processing fees (and that someone is always going to be me, lol).

And I see someone else’s (Robert.Walter’s) reply to Boeingfan where Robert suggest that there an extra admin burden or a risk of loss or mistakes associated with cash. I don’t know how it works in Australia with Boeingfan, but in Japan there are entire national processing systems involved with certain types of bills and cash payments. Once you pay in cash (at one of the 100,000 or so locations that you can pay in cash), there is an instant digital record of it (as well as an instant physical record of it). You can get certain bills from anywhere in Japan and pay for it in cash at any of the previously mentioned 100,000-ish locations.

And all of this is so very quick. From start (handing over the bill) to finish (getting a physical record of your payment back), that could take just 20-25 seconds or so. (IDK, I’ve never timed it.) Maybe even quicker if you wanted to try to ‘speedrun’ bill paying, lol.

Please note that with any of these bills that I am specifically talking about, I could quickly scan into an app and pay for it at home using whatever non-cash payment method. That’s definitely an option and it’s a similar process. Although you don’t get a physical record of your transaction — in that case it would be fully-digital.

I don’t want to make it seem like it’s cash or nothing. There are definitely many other payment methods. It’s just that cash payments (for the specific type of bills I’m describing) are super easy and incredibly convenient to do in Japan (and with no extra fees). It’s also basically the only time that I do use cash in Japan, lol. For everything else (whenever possible) I’ll use credit card, Apple Pay, Suica, PayPay or whatever other digital payment method.

 

[Baritone_Guy]

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?

Or don’t use a chequing account at all and keep the money in the high interest account?

You can pay bills form it too.

 

[Wanted797]

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.

You realise there are millions of customers and not everyone is in the same stage of life as you?

At some point you will withdraw from the account. Maybe even multiple times. Even outside people waiting people save for specific things and things come up.

 

[3304614]

Apple should have teamed up with a FinTech like SoFi not some old bank for boomers

Apple is getting an absolutely great deal partnering with Goldman Sachs. Such a great deal that consumer banking has cost Goldman Sachs over $3 billion dollars. Not all of Goldman’s consumer banking is Apple, but overall Goldman Sachs is taking a huge L on its ill-conceived push into consumer banking.

The problem with Goldman Sachs is that it isn’t an old bank (at least not an old consumer bank). It’s a relatively new entrant into consumer banking and really has no experience (and has no idea how to make money in consumer banking). If it was an old consumer bank with decades of experience, it probably wouldn’t have made such a bad deal with Apple in the first place.

There was talk/rumors recently about American Express buying the Apple portfolio from Goldman Sachs. But… American Express doesn’t want Goldman Sachs‘ trash deal with Apple, lol. Apple is getting everything they want from the deal and Goldman… can‘t do anything about it.

Also, SoFi didn’t have a bank charter until last year (it wasn’t an actual bank until then). Until then SoFi was doing what Apple is currently doing. SoFi partnered with a number of actual banks to offer cash management accounts to SoFi customers.

 

[seattleboi1982]

I find it annoying i am unable to withdraw money from savings into Apple cash card.

 

[ProfessionalFan]

I find it annoying i am unable to withdraw money from savings into Apple cash card.

What would be the purpose of doing that?

 

[nonns]

Lots of extra admin burden on both sides of a transaction for handling cash. Plus greater risks of loss and mistakes.

Don’t you have any credit cards down there with no fees that provide rebates or loyalty rewards? If there are and you’re not taking advantage of that, you are doing finance very wrong.

Lots of extra fees on the use of credit/debit (1.5% in 2021 for Visa and 1% on debit card cards too). Do you believe that those costs aren't passed on to the consumer by retailers? The card fees will surely end up like a tax on cash transactions as well as on electronic transactions.

 

[kingtj1971]

Apple was never 4.65%

Ok, that may be true. I was going by memory.... But I'm pretty sure they initially offered a higher rate than 4.15%, didn't they?

 

[HDFan]

My British friend calls the American use of antiquated checks “quaint”.

Checks are still used but are on the way out.

Analysis | Paper checks are dead. Cash is dying. Who still uses them? — The Washington Post

Don’t be the guy who holds up the line at Safeway to spell out “sixteen dollars and forty-four cents.” And maybe think twice before fishing out a twenty.

apple.news

 

[kingtj1971]

I’m sure they can handle the ‘burden’ otherwise they shouldn’t be in business. Credit cards are an American institution which means you always live in the red, when in fact to do finance right you should live in the black and within your means. No credit cards here, no debt thank you very much.

Historically, in America? Credit card companies VISA and MasterCard were both non-profit organizations established by the banks to make it easier for people to do transactions.

As they transitioned into for-profit businesses, you saw the merchant fees on transactions climb, and all of the gimmicks to earn points or cash-back rewards began.

What I'm seeing now is a trend for the smaller businesses to push-back on the fees, by telling people they offer discounted prices for using cash. I think that's great, because it helps remind people what it costs a store to run your credit card and ensures cash customers aren't paying more than necessary to subsidize costs they incur when taking card payments.

 

[ShadowJade]

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.

My Savings changed my spending habits. I used to charge 100% of my existence on Card and pay it off every night from my checking account. I have lifetime cash back of $3,806.09. Now I charge my $4,000-$5000/month, get the cash back into the 4.15% savings. Every week I deposit 1/4ᵀᴴ of my balance into the account and get the 4.15% on that. I pay balance due in full on the last day of the month. Now, granted, I also have a decent chunk in there towards my kids college, but I have gotten $390.32 in interest since opening it on 4/27/23. So while I do use it sort of like a checking account, I am above $4100 in free money from the 2 services. The savings account is giving me nearly $95/month right now.

 

[ShadowJade]

You still haven’t provided a sound basis for your ‘backwards’ comment. The world still produces and accepts cash, and there are certainly no fees to use cash but at many many retailers to use a card there is a fee, so it makes zero sense to pay those fees when there is a fee free option. Payments and refunds in cash are instant, fee free, use zero electricity, and don’t need the internet. I’m going to keep using it for as long as it’s around and continue to enjoy jumping the queue when the card terminal is down.

I respect people living with cash, but when I am getting 2-3% on tap-to-pay, my peers paying cash are losing out on that money…kinda like paying a fee to use cash (less in your pocket). My 825 credit score and over $4,000 in cash back+4.15% in the savings is reason enough for me not to use cash.

 

[Boeingfan]

I respect people living with cash, but when I am getting 2-3% on tap-to-pay, my peers paying cash are losing out on that money…kinda like paying a fee to use cash (less in your pocket). My 825 credit score and over $4,000 in cash back+4.15% in the savings is reason enough for me not to use cash.

I believe credit scores are a cartel of private companies to coerce you to use the products they want you to use. And financial institutions will never let you be better off than they are, so when the electricity is out, when the card networks are down, cash finishes first. Plus, at least here in Australia, you will pay less with cash than you will on card because there are no card fees, which far and away voids any interest accrued by cards.

 

[Mr. Dee]

My Savings changed my spending habits. I used to charge 100% of my existence on Card and pay it off every night from my checking account. I have lifetime cash back of $3,806.09. Now I charge my $4,000-$5000/month, get the cash back into the 4.15% savings. Every week I deposit 1/4ᵀᴴ of my balance into the account and get the 4.15% on that. I pay balance due in full on the last day of the month. Now, granted, I also have a decent chunk in there towards my kids college, but I have gotten $390.32 in interest since opening it on 4/27/23. So while I do use it sort of like a checking account, I am above $4100 in free money from the 2 services. The savings account is giving me nearly $95/month right now.

I'm on average 34 a month but I plan to put some more in there around spring after taxes.

 

[k1121j]

I respect people living with cash, but when I am getting 2-3% on tap-to-pay, my peers paying cash are losing out on that money…kinda like paying a fee to use cash (less in your pocket). My 825 credit score and over $4,000 in cash back+4.15% in the savings is reason enough for me not to use cash.

Yep but in the grand scheme of things you are paying for it in the end. Those merchants costs are passed along to consumers. Credit cards cause the majority of inflation in my opinion. They government needs to provide a way that’s free to pay and accept money electronically.