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Apple cash 4.15% savings account
April 17, 2023
7:23 am
suburbs4life
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Well this should make things interesting! Looks like it has started in the USA as of today. Hopefully it will come to Canada soon. Look out Simplii and Tangerine!

https://www.macrumors.com/2023/04/17/apple-card-savings-account-launching-today/

April 17, 2023
7:58 am
Norman1
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It is not going to be in Canada soon. Apple Card itself isn't even available in Canada yet.

April 17, 2023
3:03 pm
RetirEd
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I wouldn't want to entrust anything - cash, phone, information, whatever - to that consistently scummy and dishonest nest of abusers.
RetirEd

RetirEd

April 19, 2023
9:02 am
cgouimet
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Steve Jobs was quite a visionary but I remain allergic to Apple products due to their insistence on a closed ecosystem.

But for those who don't mind that ... https://www.bnnbloomberg.ca/here-s-what-we-know-about-apple-s-new-high-interest-savings-account-1.1909621

CGO
April 19, 2023
9:21 am
Norman1
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Apple is not a financial institution in Canada or even in the US. So, Apple cannot accept deposits or even issue credit cards.

In the US, the Apple-branded credit card and savings account are from/with Goldman Sachs Bank. Apple just inserts itself between the bank and the client to collect a cut from the bank.

That's similar to what Neo Financial does:

The Neo Money™ account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Money™ accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor. For more information about CDIC deposit insurance, please consult CDIC's website cdic.ca

Neo credit cards issued by ATB Financial pursuant to license by Mastercard International Incorporated. Mastercard® is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

The Neo Money™ card is a prepaid Mastercard® issued by Equitable Bank pursuant to license by Mastercard International Incorporated. The Neo Money™ card is powered by the Neo Money™ account, which is provided by Concentra Bank.

April 19, 2023
10:15 am
Dean
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suburbs4life said

Well this should make things interesting! Looks like it has started in the USA as of today. Hopefully it will come to Canada soon. Look out Simplii and Tangerine!

https://www.macrumors.com/2023/04/17/apple-card-savings-account-launching-today/  

Ya, that was in the news a couple days ago.

Careful what you wish for. sf-confused

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

April 19, 2023
11:34 am
mordko
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Yes, Apple teamed up with Goldman Sachs. Given the strength of the brand and the added convenience of the product, banks have a lot to worry about. Including in Canada were we have little competition and consumers would benefit the most.

April 20, 2023
12:56 pm
RetirEd
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Affiliate cards are nothing new. No worries here if you don't hate Apple and other popularly unpopular outfits.
RetirEd

RetirEd

April 21, 2023
6:47 am
mordko
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I think it is new because of added convenience, change in how cards are being used and love for the brand.

Some people have all their credit cards on their phones and watches (like me). And driving licences (not available in Canada yet but surely soon). Wallets are becoming thinner on the way to oblivion.

Apple is working hard to not be like a traditional bank. The idea is to have a closed loop: spend with your Apple credit card, get rewards automatically deposited into your Apple savings account and get a decent interest rate on it. The customer does nothing except swipe his phone now and then. Convenient. Uptake likely to be high. Moving money from other banks would be extra effort, so remains to be seen if it happens.

135 million Americans use Apple phones. More effluent half of the adult population. They are the target. Traditional banks have a serious competitor with a humongous amount of cash in the pockets. Canada would be a logical next step with the market crying out for a new entrant.

April 21, 2023
11:34 am
HermanH
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mordko said
More effluent half of the adult population.

I think you mean 'affluent'. sf-smile

April 22, 2023
10:51 am
Nehpets
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HermanH said

mordko said
More effluent half of the adult population.

I think you mean 'affluent'. sf-smile  

135 million "effluent" Americans

Perhaps a Freudian slip??? sf-laugh

April 22, 2023
10:54 am
cgouimet
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Nehpets said

135 million "effluent" Americans

Perhaps a Freudian slip??? sf-laugh  

There's a FLA resident with a big private jet and lots of security that could be the leader of that group ...

CGO
April 22, 2023
1:20 pm
Norman1
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mordko said

135 million Americans use Apple phones. More effluent half of the adult population. They are the target. Traditional banks have a serious competitor with a humongous amount of cash in the pockets. Canada would be a logical next step with the market crying out for a new entrant.

Apple is a nobody in the banking world.

US$48 billion cash and near cash on their balance sheet is really nothing in banking. Bank of Montreal, one of the Canadian banks, has about $200 billion of liquid assets on their balance sheet just to back up the potential next thirty days worth of withdrawals.

Apple is not a serious banking competitor because Apple has to go through a competitor! All the banks know that.

It's been over two years since Apple launched its Apple Card credit card in August 2019. Only one bank in the US has agreed to be an issuer of the card. No other financial institution in the world has signed up to be an issuer. Like many tech companies, they offer solutions that are looking for a problem.

Don't believe all that marketing from Apple. Canadian banks know from experience that's not how people actually shop for financial services. Trying to attract clients who want to pay very little or nothing for services is not a priority for the banks or any other business.

April 22, 2023
2:33 pm
mordko
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Apple’s strategy starts with the US, so not exactly surprising that only a US bank “agreed”. Nobody else had an opportunity to agree. Yet.

Apple isn’t a bank right now, so too much money on balance sheet would have been a bad thing. But it generates $170bn in annual profit and with market cap in trillions, its hard to not take seriously.

Fintech is coming and Canadian banking oligopoly with bloated staff and margins is particularly ripe for a little competition.

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