Here's How the Apple Card's New Savings Rate Compares to Alternatives

[orangeadrenaline]

Oh?

I haven't looked into for a while. Any suggestions? I'm not looking to manage everything myself.

Many firms make you feel like you cannot manage your own money to scare you into keeping your money with them. Depending on your goals, there are investment options at places like Vanguard and Fidelity where you select one fund to put all of your money into. Immediately you will be invested in thousands of companies with no thinking or tinkering required. Chances are, you will outperform the expensive firms and save a ton of money.

 

[Chazak]

This is pure silliness. 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 is so large that you’d be better off in a mutual fund.

Silliness? A mutual fund compared to a high yield savings account? That's apples to oranges. Two completely different instruments and vastly different risk and liquidity profiles. They are not comparable in much of any way other than to say both are a kind of investing.

If you know a mutual fund (highly rated) that guarantees a minimum return of 4.35% and is open end ed and fee free with the same risk profile as a HYS a lot of people, myself included would want to take business there.

 

[orangeadrenaline]

Silliness? A mutual fund compared to a high yield savings account? That's apples to oranges. Two completely different instruments and vastly different risk and liquidity profiles. They are not comparable in much of any way other than to say both are a kind of investing.

If you know a mutual fund (highly rated) that guarantees a minimum return of 4.35% and is open end ed and fee free with the same risk profile as a HYS a lot of people, myself included would want to take business there.

Savings accounts and mutual funds do not guarantee return. Banks change savings rates on a whim. Also, there’s no such thing as mutual fund ratings unless it’s from a group like Morningstar that acknowledges the expense ratio is a better indication of rate of return than their own ratings.

There are money market mutual funds that are composed of 90%+ of US treasury bonds and considered as safe as FDIC accounts. These accounts are currently earning 5%+. They track with the federal reserve rate movements. Review money market mutual funds from Fidelity and Vanguard as a start. Note that the 7-day SEC yield numbers are after any fees. Good luck in your learning.

 

[Chazak]

Savings accounts and mutual funds do not guarantee return. Also, there’s no such thing as mutual fund ratings unless it’s from a group like Morningstar that acknowledges the expense ratio is a better indication of rate of return than their own ratings.

There are money market mutual funds that are composed of 90%+ of US treasury bonds and considered as safe as FDIC accounts. These accounts are currently earning 5%+. They track with the federal reserve rate movements. Review money market mutual funds from Fidelity and Vanguard as a start. Note that the 7-day SEC yield numbers are after any fees. Good luck in your learning.

Unfortunately for you, you missed the irony and the point.

 

[orangeadrenaline]

Unfortunately for you, you missed the irony and the point.

Okay?

 

[Rogifan]

Their math is not off. You are just saying total interest income and they are not. They are saying how much you'd have to have for the 20 basis point difference to result in $100 per month between the two rates.

Ah, makes sense now.

 

[Robert.Walter]

Duplicate.

 

[Robert.Walter]

Unfortunately for you, you missed the irony and the point.

Could you please explain these then please? They barely moved the needle on the point and irony scales. TY.

 

[ChromeAce]

Silliness? A mutual fund compared to a high yield savings account? That's apples to oranges. Two completely different instruments and vastly different risk and liquidity profiles. They are not comparable in much of any way other than to say both are a kind of investing.

If you know a mutual fund (highly rated) that guarantees a minimum return of 4.35% and is open end ed and fee free with the same risk profile as a HYS a lot of people, myself included would want to take business there.

Guarantees? No such thing. Savings account interest is never locked in.