Apple Savings is soon, iOS 17 interactive Widgets, 'Make Something Wonderful'

darkvader said:

Seriously?  "long-awaited" savings account?

I don't think anybody is actually waiting for that.  Nobody uses savings accounts any more, the only reason I even have one is because my credit union makes me keep $1 in it so I can use my checking account.

You really need to think before you type. You claim that "nobody uses savings accounts any more[sic]" and yet you can find a very large market for competitive high yield savings accounts -and- plenty of evidence of newly created ones, including evidence that Apple will be launching one soon, now that the Fed keeps increasing the rate, which clearly shows that people are using them. I recently recommended one to people I know that use their bank's savings account, but it's crappy 0.2% APR (which is probably close to your credit union) when they can make a simple and free ACH to something like Goldman Sachs' Marcus to get 3.9% which will probably be increasing again soon.

Personally, I much prefer a higher yield but that doesn't mean I don't see the benefit for more conservative investors that don't want to forbid access for x-duration in a CD or take on a risk with stocks and mutual funds, kind of like I don't see myself using Apple's Pay Later, but I don't see why those are popular and why someone may use them.

darkvader said:

Seriously?  "long-awaited" savings account?

I don't think anybody is actually waiting for that.  Nobody uses savings accounts any more, the only reason I even have one is because my credit union makes me keep $1 in it so I can use my checking account.

Count me as at least one person who's been waiting on the Apple Savings account. I'm interested in seeing how it works and will absolutely use it in place of my bank's standard savings account.

"Nobody uses savings accounts anymore."

lol. I have the standard 6 months living expenses for my family of 3 in a high-yield savings account (~3.5%) which is currently earning about $1300 a year in interest. Highly liquid, instantly available in the event of an emergency or other sudden household need, without having to raid the much, much larger amount of money I have in a range of investments where cashing out can involve tax complexities and lost earning opportunities, and certainly better than leaning on usurious consumer debt. The right financial tool for the job.

I have no idea of Apple's savings account will make any sense for me compared to existing options (if it's anything like the Apple Card, probably not), but more options in the marketplace are always welcome.

Like someone else said: Think before you type. Financial diversity is the key to staying ahead of life's challenges and setting your own priorities instead of being at the mercy of others'.

neoncat said:

"Nobody uses savings accounts anymore."

lol. I have the standard 6 month's living expenses for my family of 3 in a high-yield savings account (~3.5%) which is currently earning about $1300 a year in interest. Highly liquid, instantly available in the event of a emergency or other sudden need, without having to raid the much, much larger amount of money tied up in higher-earning investments where cashing out can involve capital gains and lost earning opportunities. The right financial tool for the job.

I have no idea of Apple's savings account will make any sense (if it's anything like the Apple Card, probably not—too much hype, but weak where it counts), but more options are always welcome.

Like someone else said: Think before you type. Financial diversity is the key to not being an idiot who's always facing yet more debt as the only solution to life's challenges. 

Having at least 6 months of expenses is a HYSA is a great plan, but you may want to consider other options for future potential need. Specifically, an LAL (Liquidity Access Line) is something to consider. I don't think all brokerages do it, but the more established ones do it. If you aren't aware, it's basically a loan against your investments that tend to be very low cost loans because they're secured by your investments.

This was before the Fed hikes, but I know Morgan Stanley had fixed rate loans for under 2% for a large variety of years. Since my stocks make a lot more than that it was both a way to let investments grow and avoid paying taxes on the sale of the stocks. Even when they are due, if I have to sell stocks to pay them off, you still get options like letting it ride at whatever the interest rate is.

I have one that has matured but I still haven't paid it because I'm earning more from the stock than I am from the variable interest rate it now has. At the very least, I'd look into getting an LAL setup (took a couple weeks for me) because then it only takes an hour for your brokerage firm to issue you funds via a wire to the account of your choice.