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Apple launches savings account with 4.15% interest rate

28 points by ab_testing 3y ago

abudabi123 3y ago
Banking services wasn't what made Apple astronomically rich beyond imagination in the first place.
- PaulHoule 3y ago
  Goldman Sachs has done terribly underwriting the Apple card https://www.fstech.co.uk/fst/Goldman_Sachs_Apple_Card_Unit_Loses_Over_1_Billion.php https://www.fstech.co.uk/fst/Goldman_Sachs_Apple_Card_Unit_L... It's like they are getting sucked dry by some kind of vampire squid. Offering sky-high interest rates will certainly help attract deposits but it's likely to be a formula for losing money the way they have been losing on the card.
  - WorldMaker 3y ago
    Goldman Sachs seems to be acting like this partnership is a loss leader for Apple to teach them a lot of software ideas that they can turn around into their other consumer products under the Marcus brand. In many ways it almost looks like GS is using Apple as an R&D department for redefining/redesigning what consumer finance products look like in the modern software era. It will certainly be interesting to see how much the bet pays off on Marcus competing with more traditional banking products over the next few years.
- nocsi 3y ago
  No, but keeping families locked into their ecosystem and in-turn continually purchasing their hardware does. I can store my kids allowance in the savings account now - 1 more thing keeping me locked in
  - runjake 3y ago
    > I can store my kids allowance in the savings account now - 1 more thing keeping me locked in So then, don't? One of a corporation's tasks is to acquire and hold onto customers.
    - dorkwood 3y ago
      I think they’re talking about a broader effect at work here, and using themselves as an example. Your advice may prevent one Hacker News poster from further locking themselves in, but there are about a billion others who won’t get the chance to read it.
deleted 3y ago
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adamredwoods 3y ago
That is not bad (less that 6-mos cd), subject to change at any minute, though. Per Apple, you must be using iOS first time I've ever seen that prereq: >> Annual Percentage Yield (APY) is 4.15 percent as of 4/14/2023. APY may change at any time. Maximum balance limits apply. Savings is available with iOS 16.4 and later.
SilverBirch 3y ago
It makes sense that you would start to exploit more of the advantages you have (you have a massive user base, you've got payments), but Apple launching a white-label goldman sachs savings account is just about as unsexy as you can get. I hoep this doesn't distract from the core business in the long term. By that I mean, this could make a lot of money, and if it does make a lot of money you'll end up with bankers being promoted and running Apple, which would be... bad.
- shyn3 3y ago
  This allows them to open chequing accounts in the future and become a bank so they can create more loans in the future for the credit cards they created earlier. Or so I've heard.
cyanydeez 3y ago
Knowing apple, this sounds like a dark pattern.

28 points by ab_testing 3y ago

abudabi123 3y ago

Banking services wasn't what made Apple astronomically rich beyond imagination in the first place.

PaulHoule 3y ago
Goldman Sachs has done terribly underwriting the Apple card https://www.fstech.co.uk/fst/Goldman_Sachs_Apple_Card_Unit_Loses_Over_1_Billion.php https://www.fstech.co.uk/fst/Goldman_Sachs_Apple_Card_Unit_L... It's like they are getting sucked dry by some kind of vampire squid. Offering sky-high interest rates will certainly help attract deposits but it's likely to be a formula for losing money the way they have been losing on the card.
- WorldMaker 3y ago
  Goldman Sachs seems to be acting like this partnership is a loss leader for Apple to teach them a lot of software ideas that they can turn around into their other consumer products under the Marcus brand. In many ways it almost looks like GS is using Apple as an R&D department for redefining/redesigning what consumer finance products look like in the modern software era. It will certainly be interesting to see how much the bet pays off on Marcus competing with more traditional banking products over the next few years.
nocsi 3y ago
No, but keeping families locked into their ecosystem and in-turn continually purchasing their hardware does. I can store my kids allowance in the savings account now - 1 more thing keeping me locked in
- runjake 3y ago
  > I can store my kids allowance in the savings account now - 1 more thing keeping me locked in So then, don't? One of a corporation's tasks is to acquire and hold onto customers.
  - dorkwood 3y ago
    I think they’re talking about a broader effect at work here, and using themselves as an example. Your advice may prevent one Hacker News poster from further locking themselves in, but there are about a billion others who won’t get the chance to read it.

deleted 3y ago

[deleted]

adamredwoods 3y ago

That is not bad (less that 6-mos cd), subject to change at any minute, though. Per Apple, you must be using iOS first time I've ever seen that prereq: >> Annual Percentage Yield (APY) is 4.15 percent as of 4/14/2023. APY may change at any time. Maximum balance limits apply. Savings is available with iOS 16.4 and later.

SilverBirch 3y ago

It makes sense that you would start to exploit more of the advantages you have (you have a massive user base, you've got payments), but Apple launching a white-label goldman sachs savings account is just about as unsexy as you can get. I hoep this doesn't distract from the core business in the long term. By that I mean, this could make a lot of money, and if it does make a lot of money you'll end up with bankers being promoted and running Apple, which would be... bad.

shyn3 3y ago
This allows them to open chequing accounts in the future and become a bank so they can create more loans in the future for the credit cards they created earlier. Or so I've heard.

cyanydeez 3y ago

Knowing apple, this sounds like a dark pattern.