Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Many people trust Apple more than any bank. No comparison. This is going to be huge.
Well, except for the fact that Apple is not a bank. Users are depositing their money into Goldman Sachs Bank, the country’s largest investment and securities firm. I’m amazed that so many in this thread have no idea what’s going on with the savings account.
 
"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.

Agreed. I technically “pay later” every time I use the Apple Card, or any other credit card, for that matter. They key is not to carry a balance to avoid interest payments. With that in mind there are some legitimately good uses for pay later out there. Perhaps you’ve got the cash, want the item now but also want better cash flow “just in case” or you’d like to split the payments out with no interest over a slightly longer period of time than you get by just using the Apple Card.

As for the Apple savings account it’s a pretty good no brainer option for users without a high yield checking or savings account. I happen to have a high yield checking account with an interest rate that’s at 5.25% right now. Sure there’s a limit to the balance you can have in the account that’s subject to that higher rate but if I didn’t have that the Apple option could be a solid alternative.

My questions are is it possible to transfer money from an existing savings or checking account to the Apple account so you can get a better rate on money that doesn’t come about from Apple Card cash back transactions and how hard is it to transfer the funds out of there and back to a standard savings or checking account if you need them? If those are easy options this is a winner for most people. If you can’t add funds from another account and/or getting the money out is a PITA then it’s probably not worth it.

Even though I can get a better cash back rate by using other cards on select items during various promotional periods managing all of that is a total PITA so I’ve found I use my Apple Card for just about everything and transfer the daily cash back to my high yield checking account.

The only bad habit I need to break is using a debit card for in person transactions. To really be safe you want to use s credit card for everything so you’re not on the hook for any fraudulent transactions. With a debit card that money is gone unless / until your financial institution makes you whole again. With a fraudulent credit card transaction you just report it and you’re not on the hook for a penny while it gets sorted out.
 
  • Love
Reactions: PantherKang
In with those saying pay later is not financially healthy. I can’t think of a single circumstance under which it could possibly improve anyone’s financial health. If it’s that small an amount and you can’t pay now, you should probably skip the purchase and put that savings account to use. It is solely a tool to increase people’s willingness to pay.

The savings account is a nice chaser, though. Will be interesting if they don’t move rates up soon after the fed increase. If the fed had decreased I bet that rate would have come down instantly, haha. I have savings with Betterment… they moved from 4.35 to 4.5 right after the announcement (to take effect starting next week). There are better options out there but Apple’s ease of use is hard to beat, as usual.
Why do billionaires finance 250 million dollar NYC penthouses? Because no one likes dropping all their money at once. Pay later is a great tool when used responsibly. Like the saying goes… with great power, comes great responsibility.
 
Why do billionaires finance 250 million dollar NYC penthouses? Because no one likes dropping all their money at once. Pay later is a great tool when used responsibly. Like the saying goes… with great power, comes great responsibility.
Couldn't agree more. Instead people use this to buy things they can't afford, miss payments, ruin their credit history and then blame it on the offer :D
 

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


If I correctly recall Cook’s keynote speeches since he became Apple’s head, pretty much everything is “incredible” to him. And he’s always “very excited” to bring things, new or otherwise, to us.
That's because they have just made the best iPhone ever ;)
 
How is racking up more debt on a credit card make for a "healthier financial life,"? They will say anything..
As any financial advisor will tell you, too much debt is obviously bad, but some debt is better than no debt as long as it is an appropriate fraction, of your income, and you manage it properly, paying it off appropriately. That establishes a solid credit rating, which opens up many doors.
 
🤣 Someone who needs to use Apple Pay Later is probably not living a healthy financial life. 1%ers like Tim Apple are living in a different reality
Not true at all. If it’s interest free, why it use other people’s money for free?
 
Why do billionaires finance 250 million dollar NYC penthouses? Because no one likes dropping all their money at once. Pay later is a great tool when used responsibly. Like the saying goes… with great power, comes great responsibility.
This is exactly my point, though. It’s one thing for an average consumer to responsibly take on a mortgage. Sure, even finance a Mac or iPhone if you find it advantageous. However, Pay Later is targeted toward smaller purchases, and potentially applies to many consumable things that have absolutely zero resale value. Not to mention, if someone making a purchase of $75 or even $750 is the equivalent of “dropping all their money”, then they shouldn’t be making that purchase until they save up a bit more (IMO). I may be more risk averse than others, but I think this is much more of a trap than a tool.
 
Meanwhile, in the UK we still don't have anything at all.

How hard can it be to forge a relationship with a financial institution when you're the size of Apple?
 
Meanwhile, in the UK we still don't have anything at all.

How hard can it be to forge a relationship with a financial institution when you're the size of Apple?
Pretty sure the main issue is regulators, not finding a bank partner willing to have some other company manage their customer acquisition and first-line interactions.
 
Pretty sure the main issue is regulators, not finding a bank partner willing to have some other company manage their customer acquisition and first-line interactions.

Korea just got Apple Pay, 8 years after launch in the US. It took 9 months after initial launch in October 2014 before it was available in UK. Apple Savings is far more complex than a POS solution. I can't even imagine how long it will take!
 
  • Like
Reactions: fatlardo
My questions are is it possible to transfer money from an existing savings or checking account to the Apple account so you can get a better rate on money that doesn’t come about from Apple Card cash back transactions and how hard is it to transfer the funds out of there and back to a standard savings or checking account if you need them? If those are easy options this is a winner for most people. If you can’t add funds from another account and/or getting the money out is a PITA then it’s probably not worth it.
Yes to your first question, and it seems simple to transfer money back out of the Apple Savings Account. I had a little money sitting in a big bank's savings account earning some horrible low interest rate like .05% or something. Transferring money to/from Apple Savings Account is easy and painless.
 
I second this. Within a day of opening my Apple savings account, I withdrew $20 to see how long it would take to be transferred back into my credit union account. It was there same day.
 
  • Like
Reactions: gleepskip
Agreed. I technically “pay later” every time I use the Apple Card, or any other credit card, for that matter. They key is not to carry a balance to avoid interest payments. With that in mind there are some legitimately good uses for pay later out there. Perhaps you’ve got the cash, want the item now but also want better cash flow “just in case” or you’d like to split the payments out with no interest over a slightly longer period of time than you get by just using the Apple Card.

As for the Apple savings account it’s a pretty good no brainer option for users without a high yield checking or savings account. I happen to have a high yield checking account with an interest rate that’s at 5.25% right now. Sure there’s a limit to the balance you can have in the account that’s subject to that higher rate but if I didn’t have that the Apple option could be a solid alternative.

My questions are is it possible to transfer money from an existing savings or checking account to the Apple account so you can get a better rate on money that doesn’t come about from Apple Card cash back transactions and how hard is it to transfer the funds out of there and back to a standard savings or checking account if you need them? If those are easy options this is a winner for most people. If you can’t add funds from another account and/or getting the money out is a PITA then it’s probably not worth it.

Even though I can get a better cash back rate by using other cards on select items during various promotional periods managing all of that is a total PITA so I’ve found I use my Apple Card for just about everything and transfer the daily cash back to my high yield checking account.

The only bad habit I need to break is using a debit card for in person transactions. To really be safe you want to use s credit card for everything so you’re not on the hook for any fraudulent transactions. With a debit card that money is gone unless / until your financial institution makes you whole again. With a fraudulent credit card transaction you just report it and you’re not on the hook for a penny while it gets sorted out.
It is just the same as it is with any other banking app. You add the external accounts and initiate the transfers yourself. It takes up to 4-5 days for the funds to clear.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.