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

My Robinhood account has a 5.25% APY, I think Robinhood Gold costs $5 a month and with a little over $1000 in the brokerage earning interest it about covers my charge which unlocks a bunch of other features. I sort of like that my interest covers this charge because for someone like me with fairly little savings, $5 as interest income isn’t going to make a huge impact financially on me.

That said I like that Apple is keeping their financial products competitive and it makes me feel better about having an Apple Card.
 
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This 4.5% interest they pay you for your money, is annually right? I mean, they pay you the 4.5% of the money on your account once per year.

I guess this is limited to USA, right? Do you know about anything similar on Europe? Because Spanish banks give very little for your money…
 
Populus said:
This 4.5% interest they pay you for your money, is annually right? I mean, they pay you the 4.5% of the money on your account once per year.

I guess this is limited to USA, right? Do you know about anything similar on Europe? Because Spanish banks give very little for your money…
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They pay the interest monthly, but yes its an ANNUAL APR, so it X (account value) x Y (annual % APR) / 12 paid monthly.

In the end, it ends up being a tiny bit MORE due to compounding.
 
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Karma*Police said:
Take a few minutes to open a new account with one of the banks that offer higher interest and leave the bare minimum in Apple savings. Otherwise, you’re literally losing money.
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Not necessarily-
do the other banks have monthly or annual fees?
Do they have a minimum balance?
or limits on withdrawals or any other restrictions?
Some banks also require a checking account - which may have its own requirements, minimums and fees.

Interest rates is not the only factor to consider here.
 
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tivoboy said:
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.
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Just bite the bullet and put your money in Fidelity Government Cash Reserves money market account. 5%, free checking with no limits, deposit checks online, debit card that picks up all fees at any ATM that has a MC/Visa sticker on it. Not FDIC, but only invests in short term (90 days max by law) government issues. Fund has been around for decades, through downturns, recessions including the Great Recession, and never broke the buck. It will always outperform any savings account, and principal is at less risk than a bank savings account (banks fail and it can take months for the FDIC to reimburse what the bank stole from you).
 
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victorvictoria said:
Just bite the bullet and put your money in Fidelity Government Cash Reserves money market account. 5%, free checking with no limits, deposit checks online, debit card that picks up all fees at any ATM that has a MC/Visa sticker on it. Not FDIC, but only invests in short term (90 days max by law) government issues. Fund has been around for decades, through downturns, recessions including the Great Recession, and never broke the buck. It will always outperform any savings account, and principal is at less risk than a bank savings account (banks fail and it can take months for the FDIC to reimburse what the bank stole from you).
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My surplus $$ already sits in the FMPXX. It’s been earning 5.4%

FMPXX - Fidelity ® Investments Money Market - Money Market Portfolio - Class I | Fidelity Investments

Analyze the Fund Fidelity ® Investments Money Market - Money Market Portfolio - Class I having Symbol FMPXX for type mutual-funds and perform research on other mutual funds. Learn more about mutual funds at fidelity.com.
fundresearch.fidelity.com
 
ghanwani said:
No thanks. I'll keep buying t-bills which offer a higher yield and are not subject to state income tax.
1-mo treasury is currently at 5.54% and no state tax!

Plus you should be wary when you have a computer company peddling a financial product. Maybe they should fix their snorkeling goggles so Netflix will allow people to swim with them? Or fix their phone and laptop displays so they don't cause eye strain and headaches? Or fix Siri so that it actually works on HomePod?
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How do I buy these treasury bills, mr. not-giving-advice? I’m just looking for a how-to, Not advice-to.
 
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I LOVE THESE FINANCE / WEALTH MANAGEMENT ARTICLES!!!!

Ok. I don't really love the articles per se.

What I love are the comments and posts that follow these articles! I get such great ideas and info to assist me in managing my cash. Yes, I vet every detail to ID what is best for me and my short / long term asset accretion goals. But some vehicles you all mention are new / news to me.... since I can't investigate 100% of the options that are out there, reading about what you all have found to work well is a benefit and a great time saver.

I really wish that MR would do a monthly finance / wealth-creating round-up ... or set up a dedicated finance / wealth page or forum for the readers who have used Apple (ie: stock, HYSA, etc.) to manage & grow their cash. Some years ago, I found a site on which Tesla owners and investors had done this -> talked about their various strategies for using Tesla to grow their wealth. Was very interesting.

Thanks!
 
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Corefile said:
SPAXX has a 7 day yield of 4.98%. Apple card is garbage.
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I get where you're coming from, but those aren't FDIC insured and even the best 'money management' solution with automatic deposits and withdrawls ends up feeling a little sketchy sometimes. I say that as someone who happily does this with a fidelity account lol.

If I deposited my paychecks into an account like this and never thought about it, I'd probably actually be making more money. In my fidelity setup I'm not automatically buying, because I like to maintain a buffer of money in case I need to withdraw some right away. The automatic transfer system doesn't always work perfectly in that case.

I also have accounts at jpmorgan/chase. In a way I like that one even more because I can buy the vanguard stuff instead of buying what fidelity offers. And I still get a B&M bank with a teller and atm machines I can deposit cash into. That's nice.
 
Churchman said:
What I love are the comments and posts that follow these articles! I get such great ideas and info to assist me in managing my cash. Yes, I vet every detail to ID what is best for me and my short / long term asset accretion goals. But some vehicles you all mention are new / news to me.... since I can't investigate 100% of the options that are out there, reading about what you all have found to work well is a benefit and a great time saver.
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Always check the fine print on a given account and consider your own needs and weight the pros and cons. For many people, the Apple account will be a great fit because it doesn't have the added rules that some of the higher interest accounts add (required number of deposits, requirements on a certain number of debits for the best rate, potential monthly service charges, etc.). CDs, treasury notes & bills, and other vehicles are good for any money that you're fine keeping parked for a bit.
 
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CharlesShaw said:
I’ll take it. Thank you, Goldman Sachs. The fine print at the very bottom of the Wallet App makes it clear this is a Goldman Sachs account, so it will be interesting to see our options when the partnership ends.
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In all likelihood, they'll sell their accounts to the highest bidder, similar to what they did with their "Marcus" consumer credit division. They ended up selling those accounts to a company in Missouri named SST, who has a less-than-reputable looking website. (and yes, that is no SSL!)

no thanks. I'll keep buying t-bills which offer a higher yield and are not subject to state income tax.
1-mo treasury is currently at 5.54% and no state tax!
US Treasury Yield Curve Chart
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I was coming to say the same thing. TreasuryDirect.gov makes this super easy to do. 5.5%+ on 4 week bills at the moment. These banks are doing the exact same thing and paying you a whole percentage point less, or worse.
 
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Karma*Police said:
Take a few minutes to open a new account with one of the banks that offer higher interest and leave the bare minimum in Apple savings. Otherwise, you’re literally losing money.
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You're not "literally losing money." You didn't have the money to begin with. You're just not making as much money as could otherwise.
ghanwani said:
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.
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Yep. This reminds me of a recent conversation when I deposited cash at a "traditional" bank. I keep accounts open there with the bare minimum to avoid fees to be able to deposit cash and move the money. They were trying to sell me on using more of their products. I said why on Earth would I use you for anything else‽ You offer laughable interest on everything (the same 0.01% on checking and savings). Hell, my amex checking offers 1% interest, and all my savings accounts offer way more.
 
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chewbaka said:
These aren’t savings accounts. Yes good for parking cash. But a HYSA is better for your emergency fund or short term savings.
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Nonsense.

We keep a tiny float 50-200$ in our CU checking acct. The minimum 5$ in our CS savings acct.

All other incoming cash goes straight to Apple gs HYSA. Once a month on 25th (formerly on 20th but then GS sped up ACH pushes) before our bills are due (I’ve timed all our payments for the 27th of month) we move the necessary lump sum to the CU ckg acct to cover.

Been doing since the GS hysa opened and it works perfectly.
 
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How can interest rates be so high in the US? In Italy if we get 0.5% is already good.
 
This is just a start for Apple in finances, believe me. The card and ApplePay are first steps into the market of finances and then it already got some leasing, so it can become one of large financial companies (like Sony Insurance for example), if it chooses so and with the diversification, it probably will.
 
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StoneJack said:
This is just a start for Apple in finances, believe me. The card and ApplePay are first steps into the market of finances and then it already got some leasing, so it can become one of large financial companies (like Sony Insurance for example), if it chooses so and with the diversification, it probably will.
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At some point Apple will expand their adjacent products to definitively enter finance, automotive and medical. It’s the only way they will be able to continue growing.
 
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Robert.Walter said:
At some point Apple will expand their adjacent products to definitively enter finance, automotive and medical. It’s the only way they will be able to continue growing.
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absolutely. They will move into autoindustry as soon as they find someone as reliable as Foxconn to assemble cars for them (Kia won't do it), and I bet they are studying finance industry a lot (Goldman won't do it). As for medical, that's a great idea.
 
StoneJack said:
absolutely. They will move into autoindustry as soon as they find someone as reliable as Foxconn to assemble cars for them (Kia won't do it), and I bet they are studying finance industry a lot (Goldman won't do it). As for medical, that's a great idea.
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This won’t happen on Tim Cook’s watch and once he leaves Apple is going to disintegrate very rapidly. Product lineup is already mediocre and once Tim leaves, operations will be over as well.
 
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