Apple Card Customer Agreement Updated for 'Upcoming' Savings Account Feature

[MacRumors]

Goldman Sachs this week updated its Apple Card customer agreement to reflect the credit card's upcoming Daily Cash savings account feature, which was expected to launch with iOS 16.1 but appears to have been delayed.

"To enable new ways to use Daily Cash like the upcoming Savings account feature, we are updating the Daily Cash Program section of your Apple Card Customer Agreement," reads an email sent to Apple Card holders this week.

In October, Apple announced that Apple Card users would soon be able to open a new high-yield savings account from Goldman Sachs and have their Daily Cash cashback rewards automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements. The account will be managed through the Wallet app on the iPhone.

The savings account was listed in the release notes for the iOS 16.1 Release Candidate, but it did not end up launching with that update. The savings account has not been present in any iOS 16.2 betas, so it's unclear when it will become available, but Goldman Sachs evidently continues to lay the groundwork for the feature's launch.

Once the account is set up, all Daily Cash received from that point on will be automatically deposited into it and start earning interest, unless a user opts to continue having Daily Cash added to their Apple Cash balance. Apple Card provides 2-3% Daily Cash on purchases made with Apple Pay and 1% on purchases made with the physical card.

Launched in 2019, Apple's credit card remains exclusive to the United States. Customers who sign up for an Apple Card and use it to purchase Apple products through December 25 will receive 5% Daily Cash as part of a limited-time promotion.

Article Link: Apple Card Customer Agreement Updated for 'Upcoming' Savings Account Feature

 

[jz0309]

the email I received also contained this:

Your APR has changed​

The Prime Rate has increased and as a result, the variable interest rate on Apple Card has increased.

 

[hotstreaks]

it would be nice if there was an option to add funds from a debit card in the wallet app

 

[ghanwani]

Define "high yield" in high yield savings. If it's Marcus' 3%, I must remind you that T-bills offer 4+% and the interest from them is exempt from state income tax.

United States Rates & Bonds

Get updated data about US Treasuries. Find information on government bonds yields, muni bonds and interest rates in the USA.

www.bloomberg.com

So most folks looking to invest more than $1K would be better served by opening a brokerage account and buying T-bills. And then maybe getting their credit card from that brokerage instead. Fidelity, e.g., offers a flat 2% on everything cash back card.

 

[Macintosh Quadra 840av]

the email I received also contained this:

Your APR has changed​

The Prime Rate has increased and as a result, the variable interest rate on Apple Card has increased.

Typical of most every card.

Upside is that many savings accounts are also tied to such. My Marcus account is up to 3% APR now.

 

[Jimmdean]

Define "high yield" in high yield savings. If it's Marcus' 3%, I must remind you that T-bills offer 4+% and the interest from them is exempt from state income tax.

United States Rates & Bonds

Get updated data about US Treasuries. Find information on government bonds yields, muni bonds and interest rates in the USA.

www.bloomberg.com

So most folks looking to invest more than $1K would be better served by opening a brokerage account and buying T-bills. And then maybe getting their credit card from that brokerage instead. Fidelity, e.g., offers a flat 2% on everything cash back card.

You may be right, but a lot of people have Apple Card because it is easy. This saving account would also be easy. That convenience does have value.

 

[cmChimera]

it would be nice if there was an option to add funds from a debit card in the wallet app

You can do this already.

 

[minik]

the email I received also contained this:

Your APR has changed​

The Prime Rate has increased and as a result, the variable interest rate on Apple Card has increased.

I have that too but the rates are the same on my October and November statement. Even it didn't bother me at all, my rate went up on the September statement.

 

[Chazak]

the email I received also contained this:

Your APR has changed​

The Prime Rate has increased and as a result, the variable interest rate on Apple Card has increased.

I'm not sure what your point is.

The T&C and disclosure statements you were given when opening the account made it very clear the interest rate you will be charged, if not paying your monthly balance in full, is pegged to the prime rate. All interest rates, no matter what the financial instrument is have risen dramatically over the last few months.

 

[Joe Rossignol]

the email I received also contained this:

Your APR has changed​

The Prime Rate has increased and as a result, the variable interest rate on Apple Card has increased.

Routine for a credit card. Apple Card APR has increased several times this year as the Fed hikes rates in response to high inflation.

 

[Chazak]

Define "high yield" in high yield savings. If it's Marcus' 3%, I must remind you that T-bills offer 4+% and the interest from them is exempt from state income tax.

United States Rates & Bonds

Get updated data about US Treasuries. Find information on government bonds yields, muni bonds and interest rates in the USA.

www.bloomberg.com

So most folks looking to invest more than $1K would be better served by opening a brokerage account and buying T-bills. And then maybe getting their credit card from that brokerage instead. Fidelity, e.g., offers a flat 2% on everything cash back card.

Have you actually done this other than through a mutual fund or money market instrument? Have you ever opened a brokerage account for the sole purpose of doing what you are proposing? Most people will not be better served with direct purchases through a brokerage account. You ignore liquidity issues, minimum invest requirements on certain instruments and clearing time and procedures.

You are also ignoring interest rate risk inherent with not holding a bill or bond for full term. If you bought 1 yr bills six months ago you have lost badly. In fact, you have less than when you started. $1 in t-bills bought six months ago is worth 97 cents right now and that does not even consider transaction costs. There is an inverse relationship between interest rates and principal value. One goes up, the other goes down.

It is also unlikely someone dealing in minimum denominations can tie their money up for the periods required. Oops, I need that money next Friday because my water heater failed and it is December and this isn't Florida. What do you mean? Fine, but you are only getting 97 cents back for each dollar you put it.

A simple interest savings account is often the instrument of choice due to convenience, liquidity and zero or close to it transaction costs.

Your statement is so generalized that its value is questionable. Every individual's situation and constraints are different. There is no "one size fits all" with this which is why professional advice is important.

 

[msackey]

Hmm...I have received any email from Apple or Goldman Sachs indicating that there is a Savings Account option/availability. What's the title of the email? (And yes, confirming that I do have an Apple Card)

 

[mattopotamus]

Nice, something I will forget is there and will pay for something down the road.

 

[AgentOSX]

Let me deposit checks into it please.

 

[trhoffmann]

Hmm...I have received any email from Apple or Goldman Sachs indicating that there is a Savings Account option/availability. What's the title of the email? (And yes, confirming that I do have an Apple Card)

Nor have I.

 

[lostPod]

Seems like every company has one of these savings accounts now.

 

[DocMultimedia]

Hmm...I have received any email from Apple or Goldman Sachs indicating that there is a Savings Account option/availability. What's the title of the email? (And yes, confirming that I do have an Apple Card)

Because they haven't sent out an email. Once the feature launches I'm sure they will.

 

[Joe Rossignol]

Hmm...I have received any email from Apple or Goldman Sachs indicating that there is a Savings Account option/availability. What's the title of the email? (And yes, confirming that I do have an Apple Card)

Nor have I.

"Your Apple Card statement is ready, Change in Terms Notice & Update to Privacy Notice"

 

[ghanwani]

Have you actually done this other than through a mutual fund or money market instrument?

This is what I do. I buy individual t-bills and a few bonds (> 1 year maturity). Min is $1000. It’s easy to do auto-roll for those who want it. And if you will need the money sooner than 4 weeks (min T-bill maturity) then it can be left in the money market fund.

 

[SnappleRumors]

Define "high yield" in high yield savings. If it's Marcus' 3%…

I mentioned that a while back and it wasn’t well received either.

 

[Chazak]

This is what I do. I buy individual t-bills and a few bonds (> 1 year maturity). Min is $1000. It’s easy to do auto-roll for those who want it. And if you will need the money sooner than 4 weeks (min T-bill maturity) then it can be left in the money market fund.

You are ignoring principal and rate risk or at least not mentioning it.

I get it and employ similar strategies. Much of that behavior is enabled by my personal finances and what I have managed to accumulate and the fact most of my financial responsibilities to others have been satisfied leaving me with less constraints and a higher level of liquidity. It's just not practical for most people.

 

[iForgotten]

Save money by spending money, brilliant!

 

[trhoffmann]

"Your Apple Card statement is ready, Change in Terms Notice & Update to Privacy Notice"

Ahh. Thanks. Guess I should be more attuned to reading the ”fine print”.

 

[scotty321]

Yet Apple and Goldman Sachs still don't give Quicken Mac a way to automatically download our Apple Card transactions within the app. As far as I know, they are the only major credit card in the USA that doesn't have a direct connection to Quicken Mac.

The unsatisfying workaround is to manually download the statement from the Apple Wallet on the iPhone in QFX format, then manually transfer it to the Mac using AirDrop, then manually import the transactions into Quicken Mac.

 

[ifxf]

I thought savings accounts were obsolete.