Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Here's How the Apple Card's New Savings Rate Compares to Competitors
- Thread starter MacRumors
- Start date
- Sort by reaction score
Good point and it kind of makes me wonder how much good FDIC really is anyway beyond the psychological effect. If a major bank fails to the point of needing the FDIC, it probably won't be the only one. It would just be like a bank run for the banks themselves. I don't think the FDIC can cover everyone, probably not even close.
Based on what happened in March last year, it's safe to say that, for all practical purposes, all deposits are now insured with no limit.
Based on what happened in March last year, it's safe to say that, for all practical purposes, all deposits are now insured with no limit.
Valid point. And if any of the big boys even sniffed a collapse, you can rest assured the government would save the day. These banks are too important too fail.
The savings account is fully handled by Golden Sachs and its FEIC insured. Apple just has their name on it.
Savings are savings, and investments are investments. The two don't mix.
About time… but inevitable. Even though overall fed funds rates should start coming down 25-50 bps by end of Q2’24, BANKS will have to still offer high rates to keep deposits strong. The rates will actually RISE for the next several months as more absolute dollars move to lock in treasuries/bonds for 12-18 month time horizons. The outflow from banks has already started and they will be desperate to keep those deposits.
CD rates, which DO lock in the APY, will stay here at 5.5-5.75% for the next several months, same reasoning. So, one can lock in 12-15 month CD’s for that portion of assets that should be in fixed income, or keep savings in a HYSC but be ready to have that yield start to fall a bit, 25-50 bps by the fall.
CD rates, which DO lock in the APY, will stay here at 5.5-5.75% for the next several months, same reasoning. So, one can lock in 12-15 month CD’s for that portion of assets that should be in fixed income, or keep savings in a HYSC but be ready to have that yield start to fall a bit, 25-50 bps by the fall.
Based on what happened in March last year, it's safe to say that, for all practical purposes, all deposits are now insured with no limit.
Ha yeah exactly. The Fed has basically gotten to the ”what even is money, maaan?” stage.
Maybe for online-only banks. Bank of America is currently offering 0.01% or thereabouts on their savings accounts. And most brick and mortar banks are in the < 1% range. They are looting their depositors.
Yeah Bank of America is like the abuser in a relationship, and all their customers are abused that don’t know that life could be better elsewhere, and they really can just take their money and leave.
We saw an example of this with the Silicon Valley Bank collapse. Their FDIC insurance saved thousands of startups from losing everything. They actually covered more than the $250k for some overleveraged VC firms which is both scary and comforting at the same time. https://fortune.com/2023/06/23/fdic...s-it-bailed-out-silicon-valley-bank-collapse/
I wonder if Apple will implement a 30% tax on everyone’s monthly interest. Oops. I better stay silent - don’t want to give them any ideas.
Two other options that currently have a better rate even than those two:
FNSXX - Fidelity INVT MM INSTL (depending on where you buy, there is not a huge minimum, eg. WF. https://fundresearch.fidelity.com/mutual-funds/summary/31607A109 )
FIMM - Fidelity TREASURY PRT CL I (ditto, e.g. BofA/ML https://institutional.fidelity.com/...ment-portfolio-institutional-class-frgxx.html)
Better rates, liquidity is daily, savings accounts can be useful for a few things, but an extra percentage point adds up.
Now is not the time to have savings in short term vehicles. Savings rates are going to drop (probably a lot) as the fed cuts interest rates this year. If you have money not needed for expenses, put it in CD's or treasuries. Buy them from a brokerage so they can be sold without penalty in the secondary market should an emergency arise.
I've used Bank of America since 1999. I also have investment accounts with Merrill. With my combined accounts across both institutions, I qualify for Bank of America's second highest rewards tier. I don't use them for savings because of the laughable interest rates, but for everything else they are great. I get an average 3.15% cash back (unlimited) on every credit card transaction. I pay no fees. All ATM transaction fees are immediately refunded. Customer service is very friendly and all US-based.
Granted, these perks require one to have a certain amount of cash with Bank of America, but the bar to start earning perks isn't terribly high ($20K combined three month average across all accounts, credit card balances, and investments). I moved my IRA to Merrill so that I would qualify. I'll admit that I haven't shopped around in ages because I'm quite happy with Bank of America's service and perks.
As others have noted, chasing the highest interest only makes a material difference if you have a high balance. A few extra dollars per year isn't worth it. An extra thousand, on the other hand...
In my opinion, there's no tangible advantage to using Apple's savings account over any other. There is one big disadvantage, however. The fact that I cannot use my financial planning software (Banktivity) to download transactions is absurd. Now I have to open Wallet on my iPhone, tap my way to the statements, tap the statement, tap the transaction download button, tap the file type, select the save location, tap the save button... and then I switch over to my Mac, open Banktivity, select Import, find the saved file on iCloud and import it. 🤯
My other accounts...I don't do anything. They just download automatically every day.
There's nothing special or innovative about Apple Card or Apple Savings. They're both mediocre offerings that exist solely to further monetize Apple's fanbase.
In my opinion, there's no tangible advantage to using Apple's savings account over any other. There is one big disadvantage, however. The fact that I cannot use my financial planning software (Banktivity) to download transactions is absurd. Now I have to open Wallet on my iPhone, tap my way to the statements, tap the statement, tap the transaction download button, tap the file type, select the save location, tap the save button... and then I switch over to my Mac, open Banktivity, select Import, find the saved file on iCloud and import it. 🤯
My other accounts...I don't do anything. They just download automatically every day.
There's nothing special or innovative about Apple Card or Apple Savings. They're both mediocre offerings that exist solely to further monetize Apple's fanbase.
Last edited:
Yeah the amount offered through most banks is...well...crap, to say the least. Heck, it might be a few steps below crap 😂
With the t-bill rate so comparable to many higher yield savings accounts I'd rather just have the money liquid personally.
I question the regulations that allowed a lot of things to happen that led to that in the first place.
Yes that's true, they treat their high money accounts fairly well. But then everyone does. They go a little too far on the other end, though.
What bank doesn't though? Especially a big national/international bank. Unfortunately that's America for you, right? The less you have, the more you pay. If I have an overdraft on my checking account, that $35 fee vanishes. I can afford the $35 fee. But the low money account holder gets stuck with it and, for that person, $35 hurts. It's not a fair system at all. But show me a bank that doesn't operate this way.
Last edited:
Something about having gold and making rules. I wonder how old that expression really is. Probably variations of it back to ancient Assyria when the banks were invented.
I seem to recall the Assyrians were legendary for cruelty, and banks. Probably not a coincidence.
Most in CD and MM funds though sorry if that wasn’t clarified.. yes, many big money center banks will still R&P low information checking and savings account holders.