Here's How the Apple Card Savings Account's Interest Rate Compares to Major Competitors

[msackey]

Apple savings is very un-Apple in its clunky implementation. To be able to use the money, it first needs to be transferred manually into Apple Cash. People have been conditioned to the checking/savings distinction, but there is no reason it needs to be like that anymore. The result is very inconvenient to use.

This also leads to the big problem that ultimately led me to closing the account with prejudice. GS, in its ultimate wisdom, decided that I wasn’t authenticated enough on my phone to withdraw funds from the savings account to Apple Cash. All transfers would fail with no explanation. I had to call the middling customer service so that they could verify my info and send a verification code via text message to my… phone!

The first time this happened, I assumed it was a glitch. The second time, exactly one year later, I figured it was policy. I have better things to do than to spend time with GS customer support once a year, and there is no efficiency advantage to the savings account (see first point) so I closed the account.

Apple Savings is terrible.

Apple Savings might be clunky (not sure) but you don't have to move the cash to Apple Cash to use it. You can link it to another bank account to withdraw cash.

I don't know enough about banking to say whether there is or isn't a reason to distinguish checking vs. savings, except that banks do make that distinction and still do.

 

[MrMojo1]

Have a local bank with an online savings account that pays 4.5%.
Some US Tbills are still paying ~4.5~4.6% and it's not subject to any applicable state income tax.

 

[Martin Bland]

Apple Savings might be clunky (not sure) but you don't have to move the cash to Apple Cash to use it. You can link it to another bank account to withdraw cash.

I don't know enough about banking to say whether there is or isn't a reason to distinguish checking vs. savings, except that banks do make that distinction and still do.

That still requires manually transferring money out of the account. I should be able to spend directly from the account. Where is Apple’s value add compared to the competition?

Many of the competitor products listed in the rate comparison chart work as regular checking accounts. Clearly, it’s possible to have a high yield checking account.

 

[blinker]

Apple Savings might be clunky (not sure) but you don't have to move the cash to Apple Cash to use it. You can link it to another bank account to withdraw cash.

I don't know enough about banking to say whether there is or isn't a reason to distinguish checking vs. savings, except that banks do make that distinction and still do.

Apart from the fact that savings accounts generally pay higher interest than checking, a checking account offers unlimited withdrawals, while many savings accounts limit the number of withdrawal transactions you can make per month (six is the most common).

 

[DrJR]

Bitcoin is an unrelated financial instrument. They have nothing to do with each other. Comparing bitcoin to a savings account makes no sense. I have to ask you what makes you think there is a valid comparison? It’s like comparing garlic to peaches. They are both food, but that’s as far as it goes.

They are both financial vehicles, one producing far, far greater returns. It was a funny. 😄

 

[DrJR]

My mom left me her Hummel collection, so I figure I'm set for retirement.

I have beanie babies if you want to trade.

 

[Martin Bland]

Apart from the fact that savings accounts generally pay higher interest than checking, a checking account offers unlimited withdrawals, while many savings accounts limit the number of withdrawal transactions you can make per month (six is the most common).

The six withdrawals per month limit was a regulation that was lifted in 2020.

There are many checking accounts that pay interest rates as high as savings accounts. Look at the comparison chart for examples, like Fierce.

 

[rhett7660]

Have a local bank with an online savings account that pays 4.5%.
Some US Tbills are still paying ~4.5~4.6% and it's not subject to any applicable state income tax.

Right, but T-Bills usually are for a period of time and can be subject to fees if pulled out early.

 

[rhett7660]

Apple Savings might be clunky (not sure) but you don't have to move the cash to Apple Cash to use it. You can link it to another bank account to withdraw cash.

I don't know enough about banking to say whether there is or isn't a reason to distinguish checking vs. savings, except that banks do make that distinction and still do.

Right but it is called a "savings account" not a checking or spending account. If I want to use my savings account money from my bank, I have to first move it over to my checking account. Not a big deal, same thing happens here. I am sure there are banks out there that give you a savings account atm card, this isn't one of them.

 

[iamgalt]

I keep a safety net 1 years expenses in savings. It’s easy to withdraw and it’s a sure thing will be there and won’t decrease in value unless USA totally flops and then only oil and food will have value.

Ammunition will have some solid value.

 

[MrMojo1]

Right, but T-Bills usually are for a period of time and can be subject to fees if pulled out early.

TBills are short term from a few weeks to a few months.
Many people don't pull the money early, similar to CDs, which defeats the purpose of investing in them.
It's really a Non-issue for most investors as you pick the investment timeframe that you want and leave it there to mature.
Don't invest if you think you need the money sooner than later.
Research is essential for all investors. There are No guarantees in investments just like there are No guarantees in life.

 

[Tagbert]

Pfft! You should invest in NFT's before they become popular again. Get in on the ground floor while you can.

that’s why I put my money in cat video NFTs. Just waiting for the turnaround.

 

[rhett7660]

TBills are short term from a few weeks to a few months.
Many people don't pull the money early, similar to CDs, which defeats the purpose of investing in them.
It's really a Non-issue for most investors as you pick the investment timeframe that you want and leave it there to mature.
Don't invest if you think you need the money sooner than later.
Research is essential for all investors. There are No guarantees in investments just like there are No guarantees in life.

Right, but this is still not a savings account. They are different animals.

 

[MrMojo1]

Right, but this is still not a savings account. They are different animals.

That's not the point as others have also mentioned 'alternatives' to savings, like Bitcoin or even Vanguard accounts, which are mutual funds.

 

[Baritone_Guy]

SPAXX with fidelity is at 4.25% 7-day and doesn't have any brokerage or transaction fees.

You're right that it's not an FDIC-insured account, but it's ridiculously stable and safe. I use it as median between my regular savings and my investments. Well, I was, but a 0.1% delta translates to ~$15/10,000 in annual gains, so I don't concern myself with it too much.

I am seeing 4.47%

SPAXX - Fidelity ® Government Money Market Fund | Fidelity Investments

Analyze the Fund Fidelity ® Government Money Market Fund having Symbol SPAXX for type mutual-funds and perform research on other mutual funds. Learn more about mutual funds at fidelity.com.

fundresearch.fidelity.com

 

[keenast12]

what about Robinhood cash...currently at 4.25 % APY...?

 

[HouseLannister]

People still have savings accounts???

People still have money to put in savings accounts??? Didn’t you see all the M4 products just released???

 

[svish]

Current rates are in line with the expected rates. Apple might continue with these rates for a while. However the rates will be reducing over the next few quarters as Fed reduces the rate.

 

[sloheim]

Bread Financial still can't make the list at 4.65%....?

 

[mdatwood]

Some US Tbills are still paying ~4.5~4.6% and it's not subject to any applicable state income tax.

This is the way. It's super easy to open a brokerage account, puts your savings there, and buy SGOV. It's mostly state tax free and will closely track the best t-bill rate. Once brokerage accounts became super easy to open and mostly zero trading fees, there is very little reason to use traditional savings accounts.

 

[grover5]

Cryptocurrency is a way more stable investment than any stock or bank. I don't know who you gave your money to

I don’t think you understand this conversation.

 

[mpetrides]

Apple savings is very un-Apple in its clunky implementation. To be able to use the money, it first needs to be transferred manually into Apple Cash.

The clunkiest aspect of the whole Apple Card experience is the fact that the only way to access the full functionality of the system is on an iPhone. Not on an iPad. Not on a Mac. I leave my iPhone on the kitchen counter to charge at night but have my iPad mini in the bedroom with me. If I want to check my Savings balance or transfer funds to an external bank account, I can't do it on my iPad because the Apple Wallet is not available on the iPad—it's only available on iPhone. WTF??? Why???

This stupidity is the reason why I only ise my Apple Card for purchases from Apple—because I want the 3% cash back.Were it not for that, I would never use my Apple Card.

 

[victorvictoria]

People still have money to put in savings accounts??? Didn’t you see all the M4 products just released???

Yeah, I saw them. Unfortunately, my M1 MB Air, my wife's M2 MBP and our two M2 Mac minis are already far more capable than we need!

 

[thettareddast]

Yeah, I saw them. Unfortunately, my M1 MB Air, my wife's M2 MBP and our two M2 Mac minis are already far more capable than we need!

I studied math and M1+M2+2*(M2) = M7

 

[Apple_Robert]

Apple Card doesn’t have the highest rate but, it is a seamless process to have cash back automatically put into Apple Savings.