4 ms·

How is it that the rate offered GS & Apple, is greater than GS's own banking product Marcus? WTF is going on?

by websap 3y ago

PKop 3y ago
teaser rate to get people to move from other banks, probably won't last
- DueDilligence 3y ago
  .. guaranteed for 12 consecutive months.
  - randomopining 3y ago
    no the rates can change at any time
- smugma 3y ago
  It's 0.25% higher than the rate they pay for Marcus. I've been a Marcus customer for a few years, and the rates consistently go up (and down) after the Feds change their rates. Why is the Apple rate higher than the Marcus rate? It could be a higher intro rate, but there's no indication that that's the case. My guess is that they can afford to give an extra 0.25% because they don't need to spend any money on customer acquisition/marketing costs. Marcus and Betterment often go back and forth on who provides the higher rate. Right now Betterment is 4.2%, so the rate that Apple/GS is providing isn't outrageously high, it's potentially a real rate that can be sustained. It's only outrageously high compared to the 0.01% that many big banks offer.
  - PKop 3y ago
    The higher rate is a customer acquisition cost. But perhaps you can say Apple is contributing to the expense whereas for Marcus they don't.
Finnucane 3y ago
Also, and I'd guess this a key thing, is that if you're using an Apple credit card, your cash-bask rebates are auto-deposited into the Apple Savings account. Since GS is the issuer is the card, they're keeping that money instead of paying it out to you.
tristor 3y ago
Marcus has a 10mth no-penalty CD promo right now at 5.05APY. So, it's not like there's no precedent for doing promo rates like this. This is just a promo.
- latchkey 3y ago
  Where do you see that? I'm seeing 5.05 for penalty cds. https://www.marcus.com/us/en/savings/no-penalty-cds https://www.marcus.com/us/en/savings/no-penalty-cds Best no penalty cd I've found is 4.80 @ CIT bank, which is funny enough...ex SVB. https://www.cit.com/cit-bank/bank/cds/no-penalty-cd https://www.cit.com/cit-bank/bank/cds/no-penalty-cd
jbverschoor 3y ago
It's still cheap for Apple to do that instead of raise a bunch debt to finance their buybacks
dakial1 3y ago
The delta is added to the CAC calculation. Probably it is for a limited time in the fine print.

How is it that the rate offered GS & Apple, is greater than GS's own banking product Marcus? WTF is going on?

by websap 3y ago

How is it that the rate offered GS & Apple, is greater than GS's own banking product Marcus? WTF is going on?

PKop 3y ago

teaser rate to get people to move from other banks, probably won't last

DueDilligence 3y ago
.. guaranteed for 12 consecutive months.
- randomopining 3y ago
  no the rates can change at any time
smugma 3y ago
It's 0.25% higher than the rate they pay for Marcus. I've been a Marcus customer for a few years, and the rates consistently go up (and down) after the Feds change their rates. Why is the Apple rate higher than the Marcus rate? It could be a higher intro rate, but there's no indication that that's the case. My guess is that they can afford to give an extra 0.25% because they don't need to spend any money on customer acquisition/marketing costs. Marcus and Betterment often go back and forth on who provides the higher rate. Right now Betterment is 4.2%, so the rate that Apple/GS is providing isn't outrageously high, it's potentially a real rate that can be sustained. It's only outrageously high compared to the 0.01% that many big banks offer.
- PKop 3y ago
  The higher rate is a customer acquisition cost. But perhaps you can say Apple is contributing to the expense whereas for Marcus they don't.

Finnucane 3y ago

Also, and I'd guess this a key thing, is that if you're using an Apple credit card, your cash-bask rebates are auto-deposited into the Apple Savings account. Since GS is the issuer is the card, they're keeping that money instead of paying it out to you.

tristor 3y ago

Marcus has a 10mth no-penalty CD promo right now at 5.05APY. So, it's not like there's no precedent for doing promo rates like this. This is just a promo.

latchkey 3y ago
Where do you see that? I'm seeing 5.05 for penalty cds. https://www.marcus.com/us/en/savings/no-penalty-cds https://www.marcus.com/us/en/savings/no-penalty-cds Best no penalty cd I've found is 4.80 @ CIT bank, which is funny enough...ex SVB. https://www.cit.com/cit-bank/bank/cds/no-penalty-cd https://www.cit.com/cit-bank/bank/cds/no-penalty-cd

jbverschoor 3y ago

It's still cheap for Apple to do that instead of raise a bunch debt to finance their buybacks

dakial1 3y ago

The delta is added to the CAC calculation. Probably it is for a limited time in the fine print.