Posted on 04/17/2023 7:55:16 AM PDT by zeestephen
Apple on Monday launched its Apple Card savings account with a 4.15% annual percentage yield. It requires no minimum deposit or balance...once a user sets up a savings account, all of the Daily Cash that is earned from then on will automatically be deposited there...Daily Cash is the Apple Card reward program that offers up to 3% back on purchases.
(Excerpt) Read more at cnbc.com ...
4.75% at Bask online bank
Sounds great...
I have not heard of Bask before.
FDIC insured?
What does Bask invest your money in that pays 4.75%, pays the Bask bills, and makes a Bask profit?
What is most interesting is that Apple now has interest in banking.
So even the biggest tech company in the world, with a yearly $100 billion in gross profit, sees banking as an important profit opportunity
To me its an indication where the real power lies in America
Do not need Apple or an Apple account to get that interest rate on a savings account. There are actual banks offering that much or more.
Banking has become wonderful now that the Fed guarantees an open cash window no matter how badly you manage the business.
Cue Willie Sutton…
Could be tied in with rumors of our currency going digital in the near future.
Even my good regional bank (Key) offers rates though Charles Schwab better than they offer their own customers. I asked them why and they said simply "management goes where the money is available."
Other discount brokerages such as Fidelity and E-Trade do the same. Apple is simply targeting those that don't have $1000 or more to invest in a single CD.
There are actual banks offering that much or more.“
Hmm not from what I’ve seen. Some have similar IF you maintain a pretty high balance.
FDIC?
Branchless banking (in general) is a follow-on from the Branch Covidian's manufactured crisis, but is reinforced by stupidities like, fees to cash paychecks from small businesses which have accounts in that very bank, when the employees don't. Thanks zeestephen.
looks good
I have the Apple Credit Card through Goldman Sachs and I LOVE the interface. They calculate how much payment you need to make to avoid interest charges and make it so easy to pay, so I pay multiple times a month—using it almost like a debit card. Then I get the percentage back that rolls over to Apple Cash…3% on Apple products and 1% on everything else. Would be nice to get additional interest on that.
You/your bank can buy (for you) T-bills (52 week maturities or less) (and not the same as two-year, ten year and longer Treasury notes) in increments as low as $100. The interest rate (difference between purchase price and return at maturity ) is above 4.5%. The dounside of T-bills, unlike regular two year, ten year and longer Treasury notes, is the interest (gain at maturity) is taxable at the federal level. But, the capital is protected and the risk is low to nil.
Look for them online: baseband
That should answer your questions.
“Apple Card Savings requires an iPhone with iOS 16.4 or later and is available to U.S. residents who are 18 years of age or older. Apple has published a support document with additional information about the feature.”
On top of having to use an iphone to get account then I also imagine that you lose access to your account if you suddenly don’t have a working iphone.
No Thanks
You can get even a fraction of precent in higher returns (from brokers in the same class as Charles Schwab) if you buy in increments of $10,000 or $25,000 or $50,000.
I'm sure there are places that offer even better returns on increments of $100,000 or a quarter, half or full million. That just doesn't happen to be Schwab's niche.
FWIW, I have spent most of my career working internationally and have seen how microlending has helped lift countries out of third world status-- Japan in the 1950s and 1960s; Singapore in the 1960s and 1970s; Korea and Taiwan in the 1970s and 1980s; Chile when Pinochet took power; then India and Mexico and, now, even Bangladesh in the modern era.
It could even work in the third world parts of America like Indian Reservations and Inner Cities. But it won't because of the types of politicians running these places. Even microlenders expect to get paid back and make a reasonable return.
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