? I don't know when the deposit was made, but...
$250k * .0415 = $10375 per year.
/ 365 = $28.43 per day
* 4 days = $113.70
I'm pretty bad at math, but I think it checks out.
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Nearly $1 Billion Deposited by Apple Card Owners Four Days After Savings Account Launch
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? I don't know when the deposit was made, but...
$250k * .0415 = $10375 per year.
/ 365 = $28.43 per day
* 4 days = $113.70
I'm pretty bad at math, but I think it checks out.
I wonder how much of that $1B were already account holders in Marcus (Goldman Sachs) accounts and just moved over to the Apple Goldman Sachs Savings?
Yes there are better rates, but at crappy banks like CIT or UFB banks. Those banks have poor service and lousy apps. With Apple you get an amazing UI and ease of use and…let’s face it, cool factor.
The only other ones that come close are SoFi. Arguably a decent app but I disagree with their philosophy and imo the app is bloated and has too much junk.
This account is the “it” account right now IMO, unless theres a credit union you like or you want to fool around with money market funds. But afaik schwab’s funds are not significantly better returns and I think there are risks for withdrawing too soon.
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It’s a nice rate but I’m goings to stick with money market funds and treasury bills which are paying 4.50% and higher. Also interest from treasury bills is state tax free which helps if you live in a state that has an income tax.
Agreed. It's T Bills for me. Your point about no state tax on them is an excellent one.
I don't think Apple savings is trying to compete with those more sophisticated, illiquid, longer-term investments. This is really a place to stick your cash that you want to keep on hand. I'm a saver, so I tend to over-accumulate cash and make big moves a few times a year. I moved a substantial amount of on-hand cash from my business and personal accounts into Apple Cash because it was friction free, and took less than 5-minutes to do. Already paid out over $300 in interest with little to no work involved.
I'll still make my long-term moves when I speak with my financial planner, but it was nice to be able to move money to get the interest on it while it sits idle. My BofA and Chase accounts were sucky interest. Some of the online banks with decent interest on savings, have fine printed silly rules, fees and minimums. Others seem to be hard to get money in/out off based on Reddit reviews.
Point is, I trust Apple which is why I moved money as soon as I found out about it.
It's not perhaps as liquid as you might believe - the account agreement has significant limitations on withdrawals:
- No more than $10,000 per withdrawal. No wire transfers allowed at all (presume this means only ACH transfers).
- No more than $20,000 withdrawals per week.
That’s the issue. Outside of Goldman Sachs/Apple big banks don’t need to to offer high APY so the smaller one’s offer it to gain customers money and then who knows. Look up high interest savings accounts and you’ll see a lot of younger banks while more established ones are like 1% or are variable and based on how much you have in the account.
What Apple has done is brought the high APY of a young bank and combine it with an OG bank. I doubt it will last more than a yr but ride the wave while you can. Once it’s over or my main bank matches it, which is what I hope this does, I’ll move it back. All those younger banks aren’t getting my money though.
Similar here but with Betterment (4.35%, $2M insurance because I think they spread between 8 banks). Can’t deny Apple is a seamless experience though. I moved 20k over when it first opened to try it out. I’m only using Betterment because I already had accounts with them and the rate is slightly higher. If I were starting from scratch, I’d probably just stick with Apple.
You lost me at "Wells Fargo".
Probably. Everything scales up so the more money you have means the more money you were going to have in savings and checking.
Personally not sure it's worth chasing another .75%-1% to tie up money in T-Bills right now, especially with a looming battle over the debt ceiling and a "not exactly zero" chance of a default. Having highly liquid emergency funds paying 4.15% right now is fine for me.
In more "normal" times I'd be inclined to agree with you.
For me... it depends on how you *guess* rates will move, up or down, over time. If you believe rates will be heading down in the short term, locking in 5+% for 26 weeks (6 months) might be good. No state income tax is a small bonus. IIRC, there's only been one US Treasury default, which turned out to be a short delay in payment. I might be wrong on that.
It's always good not having all of your money tied up in one instrument.
Does anybody have 1 million deposited yet?
I'm thinking about it! Should be about $1000 a month in interest!
I'm thinking about it! Should be about $1000 a month in interest!
I would hope not, considering it wouldn't be FDIC insured beyond $250,000 and the fact that you can easily split the other $750,000 among at least 3 other high yield savings accounts netting you 3.75%+ the risk-reward isn't there.
It would also net you considerably more than $1,000/month in interest with $1,000,000 at current rates.
You can't have more than 250K...
The maximum balance for your Account is $250,000. We will include any funds deposited into your Account but not interest or Daily Cash you’ve earned when determining the maximum balance limit. We may reject and return any funds transfer if your Account exceeds the maximum deposit limit.
Great to see higher interest rates. Hopefully Apple makes it available outside US
CIT Bank
They've been around for over 100 years, and the holding company that owns them (First Citizens BancShares) have themselves been around for over 100 years as well.
4.75% APY on balances of $5,000 or more.
There's also PNC, but the rate is lower at 4.3%. They've been around for over 150 years.
High Yield Savings Account | 3.85% Annual Percentage Yield APY
A high yield savings account to help reach financial goals with a 3.85% Annual Percentage Yield & no minimum balance or service fees. Apply online today!
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Depends on who holds the account and the named beneficiaries. I have an account at WF for me, my wife and my daughter as all named beneficiaries and it’s FDIC insured for 250k for each named account holder up to 750k on the one account,