4 ms·

4.15% is still well below annual inflation.

BugsJustFindMe 4y ago
It is, but the context is that most other savings account in the country have been giving less than 1% for years now, which is unconscionably low.
- joshuahedlund 4y ago
  Capital One is currently 3.5% and Barclays US is 3.8%
  - WoodenChair 4y ago
    So, this is significantly better.
    - standardUser 4y ago
      It's 0.35% to 0.65% better, until those rates inevitably change.
- standardUser 4y ago
  That's because interest rates have been historically low for a generation. Now they are climbing, so yields are rising. Nothing conscionable or unconscionable about it.
- itsoktocry 4y ago
  Inflation rates were unconscionably low. The comments seem to think Apple is doing something revolutionary here. I'm making 4% on my savings accounts now, too. Nothing special here.
mupuff1234 4y ago
But that's for last year's inflation. This year's inflation might be below 4.15% (not sure what the projections are)
martinky24 4y ago
Is inflation the goal here, or is it comparison to other HYSAs? If no HYSAs match inflation, it's not really reasonable to compare this one to it, no?
- Zandikar 4y ago
  > it's not really reasonable to compare this one to it, no? Are the fees, minimums, limits and rate structures similar? If so, then the inflation thing is irrelevant. They either beat it or don't, but at the end of the day, you're still comparing who has the better APY and what not regardless of that differential on inflation. If HYSA's (which this is, by reasonable metrics and their own definition) beating Inflation is important to you, that's a separate discussion to be had first before shopping specific offerings, as that's a discussion of a systemic problem and if HYSA's are relevant to you at all in the first place. Hot tip, in high inflationary markets like today, HYSA's don't beat inflation.
- howinteresting 4y ago
  Several other financial institutions offer similar or higher yields with higher FDIC insured limits (eg Betterment's cash reserve), with the additional advantage that the account isn't locked to a particular hardware vendor.
mikestew 4y ago
You state that as if savings accounts ever paid better than inflation. And in nearly a half-dozen decades of walking this Earth, I don't recall ever seeing that happen. Of course a savings account pays below inflation, it's about as risk-free as money storage gets. You want better returns? Go with something that carries more risk.
- Dave_TRS 4y ago
  The saddest part of bank interest is that on top of it lagging inflation, but also gets taxed aggressively making it effectively lag by inflation by an even wider margin! Being a borrower is the way to go, where your interest payments are less than inflation AND you get to deduct each year on your taxes and save keep more real dollars in your bank account than you would otherwise. I just hate debt personally, part of my upbringing. But I wonder if there's some reit or low fee investment vehicle that makes it easy to take advantage of this dynamic while still being able to sleep at night. Any ideas?
  - fundad 4y ago
    Other than a 30-year fixed mortgage?
    - Dave_TRS 4y ago
      Yes, the dynamics of a 30 years mortgage are what I'm looking for, but turn-key. Because purchasing a property and getting a mortgage is a huge hassle up front and requires tons of work for many years. Compare this to buying a publicly traded security which requires the click of a button to purchase, and retrieving the tax slip each year.
  - sakopov 4y ago
    > Being a borrower is the way to go, where your interest payments are less than inflation AND you get to deduct each year on your taxes and save keep more real dollars in your bank account than you would otherwise. With mortgages at over 6% and personal loans at 8-9% (according to my local credit union) I'm not sure if it's that much better and if deductions would offset high interest rates, but it's definitely a nice kickback.
standardUser 4y ago
You don't know what the inflation rate will be over the next 12 months. You do know what your savings account yield will be (well, until it changes). There's I bonds and TIPS if you want a hedge against inflation.
deleted 4y ago
[deleted]
philip1209 4y ago
There's an interesting YC co addressing the interest rate difference between banking + investment accounts. They basically add checking account functionality on top of auto-investing: https://nexushq.com https://nexushq.com I have no financial interests in them, but I'm a happy customer. I like using it to make float on cash in between tax payments and other obligations.

It is, but the context is that most other savings account in the country have been giving less than 1% for years now, which is unconscionably low.

joshuahedlund 4y ago
Capital One is currently 3.5% and Barclays US is 3.8%
- WoodenChair 4y ago
  So, this is significantly better.
  - standardUser 4y ago
    It's 0.35% to 0.65% better, until those rates inevitably change.
standardUser 4y ago
That's because interest rates have been historically low for a generation. Now they are climbing, so yields are rising. Nothing conscionable or unconscionable about it.
itsoktocry 4y ago
Inflation rates were unconscionably low. The comments seem to think Apple is doing something revolutionary here. I'm making 4% on my savings accounts now, too. Nothing special here.

mupuff1234 4y ago

But that's for last year's inflation. This year's inflation might be below 4.15% (not sure what the projections are)

martinky24 4y ago

Is inflation the goal here, or is it comparison to other HYSAs? If no HYSAs match inflation, it's not really reasonable to compare this one to it, no?

Zandikar 4y ago
> it's not really reasonable to compare this one to it, no? Are the fees, minimums, limits and rate structures similar? If so, then the inflation thing is irrelevant. They either beat it or don't, but at the end of the day, you're still comparing who has the better APY and what not regardless of that differential on inflation. If HYSA's (which this is, by reasonable metrics and their own definition) beating Inflation is important to you, that's a separate discussion to be had first before shopping specific offerings, as that's a discussion of a systemic problem and if HYSA's are relevant to you at all in the first place. Hot tip, in high inflationary markets like today, HYSA's don't beat inflation.
howinteresting 4y ago
Several other financial institutions offer similar or higher yields with higher FDIC insured limits (eg Betterment's cash reserve), with the additional advantage that the account isn't locked to a particular hardware vendor.

mikestew 4y ago

You state that as if savings accounts ever paid better than inflation. And in nearly a half-dozen decades of walking this Earth, I don't recall ever seeing that happen. Of course a savings account pays below inflation, it's about as risk-free as money storage gets. You want better returns? Go with something that carries more risk.

Dave_TRS 4y ago
The saddest part of bank interest is that on top of it lagging inflation, but also gets taxed aggressively making it effectively lag by inflation by an even wider margin! Being a borrower is the way to go, where your interest payments are less than inflation AND you get to deduct each year on your taxes and save keep more real dollars in your bank account than you would otherwise. I just hate debt personally, part of my upbringing. But I wonder if there's some reit or low fee investment vehicle that makes it easy to take advantage of this dynamic while still being able to sleep at night. Any ideas?
- fundad 4y ago
  Other than a 30-year fixed mortgage?
  - Dave_TRS 4y ago
    Yes, the dynamics of a 30 years mortgage are what I'm looking for, but turn-key. Because purchasing a property and getting a mortgage is a huge hassle up front and requires tons of work for many years. Compare this to buying a publicly traded security which requires the click of a button to purchase, and retrieving the tax slip each year.
- sakopov 4y ago
  > Being a borrower is the way to go, where your interest payments are less than inflation AND you get to deduct each year on your taxes and save keep more real dollars in your bank account than you would otherwise. With mortgages at over 6% and personal loans at 8-9% (according to my local credit union) I'm not sure if it's that much better and if deductions would offset high interest rates, but it's definitely a nice kickback.

standardUser 4y ago

You don't know what the inflation rate will be over the next 12 months. You do know what your savings account yield will be (well, until it changes). There's I bonds and TIPS if you want a hedge against inflation.

deleted 4y ago

[deleted]

philip1209 4y ago

There's an interesting YC co addressing the interest rate difference between banking + investment accounts. They basically add checking account functionality on top of auto-investing: https://nexushq.com https://nexushq.com I have no financial interests in them, but I'm a happy customer. I like using it to make float on cash in between tax payments and other obligations.