Tim Cook Touts 'Incredible' Response to Apple Card Savings Account on iPhone

[amartinez1660]

"Pay later" is not healthy... it's a fancy way of saying "more debt". Americans especially are in way too much debt, and "pay later" plans aren't helping.

It makes less sense to pay full for something today, with inflation, than to let it chip away a few dollars a month at 0%.
Sure, don’t overspend or buy something you don’t need but if you were going for that M2 Max anyways, then go pay later, always.

Also, this is already a broken record, a gadget here or there won’t make you poor.
It is the McMansion, the useless “College Party Experience” degree, the kids you can’t afford, the $700 a month for 6 years on the latest Honda Civic to park on the driveway (because the garage is packed with useless stuff), the daily $7 coffee caramel machiatto latte-te… the health expenses for leading an unhealthy life. THOSE things will really sink you.

Not a “pay later” laptop.

 

[DeepIn2U]

Bring to the UK soon please Tim!

Please bring Apple Card , Apple Savings and Apple Oay Later to Canada Tim!!

 

[klasma]

Tim needs some new PR buzz-words. Because is now “incredible,” the word has lost most meaning.

Yeah, it doesn't exactly improve his credibility.

 

[matrix07]

How is racking up more debt on a credit card make for a "healthier financial life,"? They will say anything..

I guess your finance so far hasn’t been healthy enough to know how to take advantage of it?

 

[matrix07]

If only banks could be this simple. Not saying I am putting all my money onto this, but the Apple account is way better and what banking should be in 2023. I still trust my credit union more. Simply cause it has a face I can deal with when needed.

Yep. Apple should add a “finance genius” at every Apple stores to deal with this.

 

[dannyyankou]

Many other options now for 4.5% and higher.

But it is nice that Daily Cash automatically goes into the account. I know you can just manually transfer money to other accounts, but it’s nice that you don’t even have to think about it.

 

[v0lume4]

"Pay later" is not healthy... it's a fancy way of saying "more debt". Americans especially are in way too much debt, and "pay later" plans aren't helping.

I agree with you 100%.

The question is who’s really at fault? Companies for offering pay later, credit, etc.? Or people for abusing credit? I’d say the answer is very easy: The latter.

 

[MLVC]

I'm sick of all these "US only" things.

 

[bLackjackj]

9

Only a $250K deposit limit. What kind of a bank only accepts a maximum of $250K?

One that doesn't want to pay interest on high balances. I see this all the time in the finance sector. People will simply shift their money over various banks and accounts.

 

[Wildkraut]

Ahh Goldman Sachs that “trustworthy” bank deeply involved into financial crisis, insider trading, fraud, bribes, etc.

Yeah go ahead and dunk your hard earned money. 🤣

 

[Robert.Walter]

So there are a lot of clueless Apple users out there then? The deposited money goes to Goldman Sachs, it doesn't stay with Apple.

Not clueless. With Apple and GS involved it’s going to get more scrutiny than my local FI.

 

[Camerondonal]

Bring to the UK soon please Tim!

It's not solely up to Apple: Goldman Sachs or another bank have to be willing

 

[Robert.Walter]

Until they allow a spouse to be a co-signer/owner, mine will stay at $4 or whatever I collect from Apple Pay rewards. I‘d transfer money into the savings account but no way will I allow it to be difficult for my spouse to get to it in case something happens to me.

That’s a legitimate concern.

If it means immediate access that depends.

Otherwise it depends on how you define difficult. If it means little hassle but with an ability to wait then it might be ok for you.

There’s a beneficiaries section in that section of the app under information.

Beneficiaries are paid first before the terms of any will or trust are exercised because the beneficiary card is a contract between user and bank.

The timing of beneficiary payout is the only variable, that it will happen according to the beneficiary card is of little doubt.

This above is generally true for all financial institutions in the US but YMMV so ask your lawyer or FI for more exact details.

 

[Robert.Walter]

9

One that doesn't want to pay interest on high balances. I see this all the time in the finance sector. People will simply shift their money over various banks and accounts.

How about one that doesn’t want you to have deposits not insured by FDIC’s 250k$ insurance cap.

 

[MacBH928]

Why would goldman sachs give 4% return on Apple savings account but not on regular savings account?

Purchase using the Apple Card. Payoff in full each month. Get cash back. Cash back goes into HYSA to earn 4.15 APY. That’s fairly healthy.

How does Apple benefit by paying you back on your purchases?

 

[avz]

Why would goldman sachs give 4% return on Apple savings account but not on regular savings account?

Perhaps because Apple is able to bring a crowd of customers that goldman could never have otherwise?
A company like Apple is really becoming a "country within a country" with its own "people" and eventually its own financial system if they choose to go down that road.

 

[Robert.Walter]

If only banks could be this simple. Not saying I am putting all my money onto this, but the Apple account is way better and what banking should be in 2023. I still trust my credit union more. Simply cause it has a face I can deal with when needed.

Our little credit union had a face but then was taken over by a bigger one with endless phone wait times.

We in the fam all moved to a bigger CU with many more services, better security, fewer annoying glitches, and no higher costs.

Now with A/GS HYSA we’ve moved the maximum amount of cash from CU to AGS, keeping a small float in the CU.

When a deposit comes into CU we move it to AGS.

If a cheque is written on CU acct, that amount is moved from AGS to CU to cover it.

We pay everything on our credit cards, and moved our CC due dates to the same day at the end of month, so we know how much we need to move from AGS to CU to cover autopay of CC balances 3 weeks in advance.

It’s literally adding up 3 due balances, plus mortgage, on the 20th and moving the money so that it’s there by the 27th. (3 days for ACH transfer + 4 days cushion to cover long weekends, in practice the 22 or 23 would work too.)

In this way interest from AGS is maximized and risk of overdraw minimized.

It takes far less time and effort than I recall as a boy watching my MBA father spending balancing his checkbook at the end of the month.

 

[newyorksole]

Apple Savings experience is great so far.

kudos, Tim.

 

[surfzen21]

It's entirely possible that Goldman offered a 4.15% APY for the Apple Savings account because they knew the Fed would be increasing rates by 25 basis points so they (GS) decided to get ahead of it and don't plan to increase it.

Marcus went from 3.75% to 3.90%.

If Goldman is smart they would use your deposits to buy short term Treasurys at 5%+, pay Apple Savings account holders 4.15%, and then keep the difference. 4.15% is still very competitive vs other banks. What is everyone going to do, pull their money if Goldman doesn't raise the rate and go to another bank? 😂

That's why I'm not bothering with the Apple Savings account and picked up some more 3 month Treasurys today instead.

5.2x% > 4.15%

View attachment 2198004

And Treasury bonds are usually exempt from state and local taxes so there is a slight bump due to that too. You may want to look at municipal bonds too since they are exempt from Federal taxes.

***This is NOT financial advice*** Please do your own research. 🙃

 

[satchmo]

Tim gets excited when it involves profits and earnings.

New hardware? Meh, not so much.

 

[DotCom2]

At the current inflation rate, keeping your money in a savings account, even with Apple’s “generous” rate, is not very smart.

Smart people keep some money in an emergency fund regardless of inflation rate.

 

[FelixDerKater]

What’s Apple’s cut from the deal?

 

[Return Zero]

As long as you have cash set aside to make your payments, pay later is beneficial because you can allow that money to compound interest in your high yield savings account for a period of time rather than spending it all at once. Of course, this will only get you a few bucks even for a big purchase like a mac…and I admit I have never used Pay Later plans… but in principle it can be beneficial because you get maximum interest out of your cash. Altho your credit utilization will increase.

If people were robots driven by mathematics, this might be true. I’m not a Dave Ramsey sheep but I fully agree with his breakdown of personal finance being only 20% knowledge (mathematics) and 80% behavior (willpower). Pay Later is a marketing tool meant to soften the consumer’s psychological blow compared to up-front payment in full. I guarantee the vast majority of people aren’t using it to save a few pennies in interest. They are using it to impulse-buy more stuff. It is largely antithetical to financial health and independence, in practice, because of that 80/20 principal.

 

[Return Zero]

What’s Apple’s cut from the deal?

You buy more stuff on their card. They have a deal with Mastercard, who gets probably 2.5% plus a flat fee of 15 cents or so every time the card is used. If there is a higher percentage cash back with certain merchants (6% for Nike or whatever), those merchants paid for that deal to help sell more stuff.

 

[CapitalIdea]

But alas, not in the UK. Yet. Ever?

When it makes business sense for a bank there to back it up, sure. That is up to UK regulators to make it compelling to operate there.