4

People Put Nearly $1 Billion Into Apple Savings Accounts in First 4 Days - Slash...

 1 year ago
source link: https://apple.slashdot.org/story/23/05/01/199246/people-put-nearly-1-billion-into-apple-savings-accounts-in-first-4-days
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
neoserver,ios ssh client

People Put Nearly $1 Billion Into Apple Savings Accounts in First 4 Days

Catch up on stories from the past week (and beyond) at the Slashdot story archive

binspamdupenotthebestofftopicslownewsdaystalestupid freshfunnyinsightfulinterestingmaybe offtopicflamebaittrollredundantoverrated insightfulinterestinginformativefunnyunderrated descriptive typodupeerror

Do you develop on GitHub? You can keep using GitHub but automatically sync your GitHub releases to SourceForge quickly and easily with this tool so your projects have a backup location, and get your project in front of SourceForge's nearly 30 million monthly users. It takes less than a minute. Get new users downloading your project releases today!

Sign up for the Slashdot newsletter! or check out the new Slashdot job board to browse remote jobs or jobs in your area
×
Apple has learned from enough games of Monopoly that it's good to be the banker as well as a player. From a report: A Monday report from Forbes based on anonymous internal sources claims users deposited close to $1 billion in just four days after Apple introduced its new Goldman Sachs-backed Apple Card savings account. While the company had previously seen success with its mobile payments platform, the new savings account is already doing gangbusters. After the Cupertino tech giant launched its new high yield savings account last month, the company saw $990 million in deposits in less than a week, per Forbes' sources. In that time, 240,000 accounts signed up for the service. New savings accounts cannot exceed $250,000 per the Federal Deposit Insurance Corporation's insurance limits. If the Forbes reporting is true, then users are depositing several thousand dollars into their new accounts, on average.

  • ›

    New savings accounts cannot exceed $250,000 per the Federal Deposit Insurance Corporation's insurance limits.

    The insurance limit doesn't limit the account size, just how much is insured.

    • It's not how the FDIC works, but it is how the people behind the accounts implemented it.

      "The maximum balance for your Account is $250,000. We will include any funds deposited into your Account but not interest or Daily Cash you’ve earned when determining the maximum balance limit. We may reject and return any funds transfer if your Account exceeds the maximum deposit limit. You authorize us to return any funds that exceed the maximum balance limit by check."

      So if you get over $250,000, they'll block deposits, or, if not possible, send you a check for the excess.

      • Re:

        But that's entirely their (weird) choice, and not at all the FDIC's.

        • I think it is a smart and 100% not weird choice for Apple and GS. Go to First Republic Bank if you want an account without a cap...oh wait they don't exist anymore.

      • Re:

        You can always open up more than one account

        • Re:

          Account is tied to your Apple Card. You're not going to open more than one of these accounts with GS.

    • Re:

      Looks like Apple/GS are limiting it to $250K though:

      https://www.goldmansachs.com/terms-and-conditions/Deposits-Account-Agreement.pdf

      • Re:

        That's a fascinating document and you'd have to be a complete idiot to agree to it, although we're talking about Apple users. Gems include:

        Leave Apple? Lose your funds.

        Want to use "your" money? That will require a written letter.

        Phone gets hacked? Say goodbye to your money.

        The agreement also places restrictions on how you can withdraw money. As far as I can tell, the only way to withdraw money is to move it onto an "Apple Cash" account. (You know, after sending them a letter a week before.) Except:

        The agree

        • Re:

          "Leave Apple? Lose your funds."

          We're talking of hardcore iFans, they give it billions, they won't ever leave.

          • Re:

            People like you talk about Apple more than actual fans of Apple do.

        • Damn dude. If "making assumptions" were an Olympic medal sport, you would be a gold medal champion!

        • Re:

          Geeez... Who do they think they are? Paypal?

        • Some idiots are not apple users...

        • Re:

          Have you never read ANY bank's user agreement???

        • Re:

          Most of that is true of any bank account with any bank. The bit about not being able to access it except via the wallet app is not normal though, and while that is the contractual minimum they guarantee (as in "if you get rid of your iPhone and decline to buy or borrow another and reestablish a wallet connection with your account we might not work with you to get your money back and may tell you to go pound sand") Apple tends to go above and beyond, if in part only because they dislike bad press and they g

    • But it IS how the policy on this account works.

      They can limit max account balance to anything they like - and they do.

  • Apple is well known for having billions of dollars at their disposal... why would such a company offer above-average interest rates to people willing to lend them money?

    • Re:

      Vendor lock-in, perhaps? Apple wants you on their platform, using their services for anything and everything.
    • To avoid liability in case the fit hits the shan and the regulators (who probably cause the fit to fly) decide âoewell they have billions. They donâ(TM)t need a bailout. âoe
    • It's a Goldman Sachs savings account with an Apple app. Why are they doing it? Because Goldman wants deposits for some reason. Why doesn't Goldman want money over $250k? Because large depositors panic and pull out their money all at once and they don't want panicky deposits.

      • Re:

        $250K limit is the FDIC limit. You can always open more accounts, but each one is capped at $250K.
        I doubt this cap is going to be a problem for you

        • Account is tied to your Apple Card. You're not going to open more than one of these accounts.

        • Ref opening multiple accounts at one 'bank', it's more complicated than that. Two+ accounts under one name get one FDIC coverage... or something like that.

  • When I run it's an iPod,
    talk, it's an iPhone,
    stuff I gotta have no matter what, it's an iLoan

    That used to be funny [youtube.com]...

  • they've got themselves a new vehicle to collect other people's money, which they can invest into the next subprime AND offload the risks to the government, while keeping the profits.

    Financial "innovation" at its finest, as usual from GS.

    • Re:

      Federal Deposit Insurance IS PAID FOR BY BANKS. it's not free insurance. If too much goes wrong all over then the insurance goes bust and the gov gets involved more because stuff is pretty bad at that point...

      Also, the banks have too much power so if they are are going to gamble MORE they should pay more insurance but this is not the case.


report

Recommend

About Joyk


Aggregate valuable and interesting links.
Joyk means Joy of geeK