From the article: Apple introduced high-yield savings accounts. This is interesting, what would be the motivation for somebody to use this? Is return noticeably better than other institutions? Why Apple is doing it at all?
- Does not work with budgeting apps yet (Mint.com in particular)
- No web interface yet, no easy way to do transfers without your phone. Having my life savings tied to a phone... a bit odd. It's a regular ACH account, but it needs more conveniences around it that other banks already have.
I love my Apple Card. I'm a huge fan of their app-first approach for everything, but a bank account is different. It should be easily accessible from any device.
Other banks are doing this excellently and have been for years, just without the fantastic app factor. Discover Bank's savings is at 3.75%. Ally is at 4%. Both with good apps, decent web interfaces, work with budgeting apps, excellent support and high interest rates.
Personally I see it being tied to my phone as a positive, I don't really need to think all that hard about it, signing into an antiquated banking website, doing 2FA, etc etc etc.
Hopefully over time Apple adds these things, but they're certainly not a blocker for me.
That fantastic app factor goes a long way for me.
Because if so, then any other online banking apps on the device aren’t safe. So just about equal security to any other mobile banking service.
- I have far more faith in Apple's security model than a traditional bank's model.
- I assume Goldman Sachs has a decent policy for fraud/hacks (though someone can fact-check this).
- I'm not a millionaire, if I was I'd be using many different bank accounts, is someone going to exploit a likely-already-patched zero-day in one of the most locked-down operating systems to get my five-figure account?
Seems to be just transfers to an Apple Cash account, which is primarily used for free Venmo-like peer to peer payments. Venmo has a similar $20k limit. I think if you're trying to transfer this much money, there are plenty of other transfer methods available.
https://www.goldmansachs.com/terms-and-conditions/Deposits-A...
It is on the higher end compared to other HYSAs. The highest I've seen is 4.81% compared to Apple's 4.15, but that's still better than 3.x% offered by a lot of HYSAs. And of course it's better than the .35% average for regular savings accounts. [1]
> Why Apple is doing it at all?
It's another mechanism to lock people into their ecosystem. You won't switch to Android if you've got funds in an Apple savings account.
1: https://www.cnbc.com/select/best-high-yield-savings-accounts...
Goldman Sachs, the institution behind Apple's financial products, offers 3.90% APY to their Marcus clients, which is lower than Apples APY %.
Apple is providing APY bump to pump the market response to their product and the media coverage ("marketing expense"), which will then pump the stock at earnings, making everyone (execs) happy.
here in the real world, interest rates were increased, so all the high yield savings interest went up. mine is 3.5% w/ sally mae - like capital1's rate.
citibank is at 3.85 while discover is 3.75. less known ones like citbank are 4.75 and bask is 4.65.
apple is providing APY in response to the current interest rate, just like everyone else, and less than many others. it has nothing to with market response and media coverage, it has to do with Sachs being able to lend your savings back out as mortgages and loans an an increased rate. when the fed rate goes back down, so will all the rates offered by all the banks. this is literally how it does and always has worked.
the only thing apple is doing is inserting themselves between you and your savings account at sachs, for some god unknown reason.