5 ms·

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

• DueDilligence 4y ago
  .. guaranteed for 12 consecutive months.
  • randomopining 4y ago
    no the rates can change at any time
• smugma 4y 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 4y 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.