Knee jerk reaction is that I’m not fond of this development. First a credit card. Now a savings account. Is Apple trying to go fintech? There was at one time promise around machine learning (Siri). Then around health (watch, mostly). Interested in hearing other’s opinions, but I’m not excited to see this myself.
Neither am I, neither positively or negatively. It just seems silly to me, negative but relatively trivial. So far, at least.
(Now, if they announced something about digital currency, I would be quite excited, in a negative way.)
It actually appears to be quite savvy.
Apple has partnered with Goldman Sachs once again for the banking feature. Savings accounts are technically managed by Goldman Sachs, which means that balances are covered by the Federal Deposit Insurance Corporation (FDIC).
Starting today, Apple Card users can choose to deposit their daily rewards into their savings accounts. It’s a way to save money without having to think too much about it.
Would seem to make using the Apple card a heck of a lot more lucrative - and at a trivial cost to Apple since they put the risk onto Goldman and there is a hard limit on deposits up to the FDIC limit.
No fees, which is good. I’ve got a little money left in Apple Cash, so I may as well stick it into a savings account.
Spotted this - 4.15% - Not a bad start…
It is very smart. They have very loyal customer base at around few hundred million people if they make 1 dollar from each customer it is 1-3 billion dollars from nothing. Also, it will tie existing customers even more.
That’s >400x the interest rate that BofA is giving me. With inflation, I’m losing money there.
It is interesting, I just want to see it stabilize for a while before jumping in…
Capital One is giving me 3.75% in a FDIC insured savings account. Vanguard a bit higher, also an FDIC insured account.