You'd have been way better off with a passive index fund. Any of them.
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Here's How the Apple Card's New Savings Rate Compares to Alternatives
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It depends where you live.
If you are in PA, then its 0.02 because PNC sucks ass.
If you are outside PA, its higher.
Out of loyalty and laziness I’m staying put. Heck, if Apple hadn’t made it so easy to move them, I’d probably still have my emergency funds in the savings account that earned me about $1 in 2022.
Chasing yield on savings accounts generally just isn't worth the time, especially for small rate differences. Time/effort would be much better focused on making sure you're taking advantage of IRAs, 401k contributions, etc.
I don't think you realize how much money someone would have to have in their high yield savings account to earn an extra $100 per month.
For instance, to earn an extra $100 per month between a high yield savings account with an APY of 4.15% (Apple Savings' old APY) and one with an APY of 4.35% (Apple Savings' new APY), the account would have to have at least $600,000 in it.
The math:
$600,000 x 4.15% = $24,900/yr or $2,075/mo
$600,000 x 4.35% = $26,100/yr or $2,175/mo
I wouldn't classify someone who has $600,000 in a savings account as "someone who is really struggling." 🤣
So ChromeAce's statement ("The amount of money you’d have to deposit to make any meaningful difference in your life based on fractions of percentages of fluctuating interest rates") stands.
I'd like to have it so my wife and I didn't have to have separate savings accounts and both of our Apple Cash deposits could just go into a single one.
...which you can't do anyway since there's a $250K limit.
And even if you could, if you had that much cash available, there's probably much better things to do with it than store it in a HYSA.
I’ll stick to the Apple Savings account because of the convenience and ease of use. 4.35% is perfectly okay with me. It’s mountains over the bank savings account I closed and moved to Apple Savings.
Exactly, my major savings are in a retail securities investment account because the return puts 5% savings accounts to shame, even after paying my fiduciary advisor’s fee. And I can get a distribution in a couple of day. My advisor also told me he can issue a Mastercard to the account if I want immediate access. My Apple Savings account is mainly a cash slush fund.
I get 4.35% at Capital One currently with the FDIC insurance. Sure, you could be right about it not mattering but I still like that peace of mind. I don't think going from 4.35 to 5.01 and losing FDIC insurance is worth it.
Considering most of my money is earning the same 4.35 at the current bank (Capital One) I see no reason to move more to Apple. If they want to increase their savings numbers, they are going to need to beat the competition. I'd move over for 5% or up.
I wasn’t talking about $100 a month. I was talking about an extra $100 a year. To some people, that extra hundred might matter. But an extra hundred a month is great too!
You reminded me of something someone I know said recently - “A hundred dollars is not of consequence.”
But a hundred dollars multiplied my ten, becomes a thousand dollars, so is THAT of consequence? Where is the line, exactly? And don’t those hundreds contribute to it?
Everyone values things differently.
Such as? I’m asking because I genuinely love hearing preppies ideas and suggestions. It’s easy to say there are better things you can do. I want the specific things.
Also, you are not limited to 250,000. You are INSURED to 250,000. And if that was really a concern, you could open multiple accounts, keeping all under that threshold.
That's the same mindset that caused my grandparents to keep their money under their mattress! Of course, it could have had something to do with losing all their money when the banks failed during the Great Depression. But with a national debt of $34 Trillion, if there was a large scale run on banks now, even if the FDIC printed enough money to cover your loss, the resulting inflation would render your money almost worthless.
Six of one, half dozen of the other in my mind.
It really is wild. I’m getting about 2.3% with Scotiabank but that seems like nothing compared to the US.
? Vanguards Cash Deposit account pays 3.7%. Their new savings account isn't accepting new clients.
People might want to consider Raisin (https://www.raisin.com/en-us/) The rates are better than what is shown in the article, and you can deal with smaller businesses if you wish.
OK I’m confused. Last month I eared $113 in my Capital One HYSA. I don’t have anything close to $600K in that account. Isn’t the math dividing the APY by 12 and then multiplying that by the account balance?
I have a checking account and credit card with Capital One. Having a HYSA there too is just easy considering the rate is competitive. Capital One allows me to set up an automatic savings plan that takes a percentage of my direct deposit paycheck each month and move it to my savings account.
How is an extra $100 a year (i.e. an extra $8.33 a month) going to help someone with buying extra groceries or get them a free month of internet or utilities?
You wrote: "In the opposite situation, of someone who is really struggling- that extra $100 or what have you could mean some extra groceries, or maybe a free month of internet or utilities. You never know."
Where can I get internet or utilities for $8.33/mo?
Come on, just admit it, you meant an extra $100/month.
Maximum balance in an Apple Savings account (what we're talking about here) is $250,000.
How to apply for a Savings account - Apple Support
When you open a Savings account, your future Daily Cash is automatically deposited to your account. You can manage your Savings account in the Wallet app, where you can easily track your account balance and interest earned over time.
5. The maximum balance allowed for a Savings account is $250,000. Any deposit you make in excess of the limit may be declined or returned to you.
Gotta love when someone is so confident while being incorrect. You may want to re-read the Apple Savings terms. It has an account limit of 250k.