The reason for using Apple Card is the convenience and elegance of the app use and paying your bill. The savings rate is fine, even if other are a few bps higher. The difference is minuscule. Higher dollars are put into mm funds anyways.
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More Than $10 Billion Deposited in Apple Card Savings Accounts
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ProfessionalFan
macrumors 603
I don’t find the wallet app any more convenient or elegant than the capital one app or other similar apps.
Mlrollin91
macrumors G5
Odd, mine is 4.3. Guess mine hasn't received the further increase. It was 4.15 last week.
k1121j
macrumors 68010
I would not say loosing money.. Its more like not making as much as they would like to, aka corporate greed.
ProfessionalFan
macrumors 603
Greg McBride
macrumors regular
If you withdraw into your Apple Cash account, it's immediate. Then, a transfer from Apple Cash to your bank is usually one day without any fees. Sometimes the transfer from Apple Cash to my bank hits the same day. That's the workaround that I've been using with no unreasonable delays in accessing my money.
sw1tcher
macrumors 604
Goldman makes plenty of money off those deposits. They make more than they pay out in interest. It's called net interest income
Goldman will make over $2 billion off those deposits this year while paying less than $500 million in interest to Apple Savings account holders.
In Q1, Goldman's net interest income was $548 million.
In Q2, Goldman's net interest income was $548 million.
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ProfessionalFan
macrumors 603
Capital One was at the same 4.15 also before going up more again. Doesn’t point to anything.
Tokenfreak
macrumors 6502a
WarmWinterHat
Suspended
Capital One has been at 4.3 for some time. It'll raise again in the next few days.
Mr. Dee
macrumors 603
I recently upgraded to iOS 16.5 then performed a test transfer using a small amount. Went without a hitch, decided to transfer about 89% of my savings. Will see how it performs over the next year. I don’t think I will put much more in; especially with other savings offering better yields. Noticed Discover is getting a lot of mention so will looking into them. All I know is what Apple is offering is way better than pittance I was getting from my big bank.
pipa
macrumors regular
Damn these banks are already insolvent due to all the 0% intrest bonds they bought and they must be taking on huge risk to be giving 5% intrest rates. Mark my words the us banking system is kicking can down the road and a total collapse is inbound!
sw1tcher
macrumors 604
O RLY?
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ProfessionalFan
macrumors 603
If they are giving these interest rates, it’s only because they are making more on the holdings than that.
pipa
macrumors regular
No matter what they do with that 10B as far as investing they are going to be taking on risk. Alot of it. I mean they can leave it in the s@p which is about 7% a year but anything else is just risk on. Apple should just take 10% of there cash and dump it into bitcoin. It would instantly triple the price of bitcoin and then they can give 20% interest. look into what Michael saylor did with his company MSTR or Micro Stradegy. He went to a all bitcoin stradegy for his company 3 years ago. Bitcoin is up 300% since then and his stock is up 400% and nothing changed but his balance sheet is bitcoin not cash that's bleeding away to inflation
pipa
macrumors regular
Trust me if they are making more then that they are taking on huge risk in these times. Banking is not the business you want to be in right now
If Apple really is building Apple Card as a better customer Financial experience (and it is not just a profit center), then ideally, they should put their money where their mouth is and build their own financial management division (assuming SEC wouldn't stop them). This way they don't need to pay Goldman (or the next guy) a management fee. Obviously the absence of a card fee is not appealing to these credit card issuers. If Goldman is successful pushing this off onto Amex, will Amex increase the merchant fees so that the fewer merchants take the Apple Card? If Apple owned this, ideally they could make a vertically integrated card experience that is tenable to the customer, the merchant and Apple.
pipa
macrumors regular
Why are so many people holding cash that's being bleed away to high prices and inflation. You hold dollars for 100 years and your dollars will be worth 98% less. that's not a great way to pass your wealth down. I dont know call me a maniac but I bought bitcoin in 2013-14 for $400 a coin and put the house on it. And now I truly feel wall street is about to enter space and its game over at that point
sw1tcher
macrumors 604
🤣 Investing the deposits in short term Treasuries that's paying a higher yield (6 month is at 5.5%) and then paying a lower 4.15% while pocketing the differnce is risky? 🤣
Goldman has already made over $1 billion in net interest income on deposits so far this year.
The only way U.S. Treasuries would be risky is if the U.S. was going to collapse in which case the U.S. dollar will not be safe anywhere you put it.
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patent10021
macrumors 68040
That's a lot of fresh customer accounts banks will be tracking once they roll out their their CBDC's 😎
pipa
macrumors regular
the problem is they were buying up these treasuries at zero percent intrest when the fed had the discount window open and promised they would never raise rates. No the shot rates to 5.5% so what about all those 2 year bills they bought at 0% interest. Every bank is insolvent and when the housing market and bad mortgages comes into play you wanna talk bank run?
minik
macrumors demi-god
Indeed! Once I made a transaction with my Apple Card, the daily cash back automatically goes to the saving account (if I elected to do so). I don't think there's a way to do that for other third party bank in the background.
AF_APPLETALK
Suspended
Yeah I was wondering about that same thing.
I use Betterment high yield savings, they seem to follow the rate hikes very closely (already adjusted upward after the latest hike) and definitely beat out this offer. Had no justification to move away from BMT to Apple Savings.