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Comment by humanistbot | Hacker News Reader

This is below current market rates for savings accounts (edit: for online-based high-interest savings accounts). Current highest rate for a no-minimum FDIC-insured account is from UFB, which is 4.81% APY: https://www.fool.com/the-ascent/banks/the-highest-savings-ac...

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Yes but then you have to use those banks, set up accounts, deal with transfers, etc. Just wait, you'll be able to buy and sell stocks and open up an IRA with Apple here within a few years at this rate.

I also wouldn't call it below market rates. I'd call it "below the highest market rate" because rates for savings accounts vary and there isn't a standard "market rate".

I read some reviews about how awful some of these banks are and it turned me off. People putting their money in and having it disappear. People not getting their money back out. Having a bank you can trust is worth something, even if you get slightly lower interest.

Other reputable banks like Amex or Discover are only returning 3.75% right now.

CIT bank has a track record of offering some of the high savings rates (4.5% now) and it has a great online interface, with $250k transfer limits.

https://www.cit.com/cit-bank/bank/savings/savings-connect-ac...

It is also part of First Citizens which is a decent sized institution:

https://en.wikipedia.org/wiki/First_Citizens_BancShares

Yeah it’s what I’d call a very competitive interest rate for a saving account.

Amex slightly lower, citizens access slightly higher.

Banks looking like they may lead to a more questionable experiences have even higher rates to offset higher chance of frustrations.

That assumes that 4.81% will remain 4.81% for the foreseeable future.

It's a common tactic to offer premium rates, and then drop the rate precipitously once they meet some quota N months later. Capital One did this circa 2020, for example.

That being said, if you're willing to play the game and monitor your monthly interest rate updates, go for it.

Otherwise, if you're a normal person who likes to ignore their HYSA account, it's prudent to go with people who are offering a rate closer to 4% (e.g. Marcus by GS is currently at 3.9%).

4.15% is lower than 4.81%, but how did you decided that UFB defines "current market rates?"

UFB, I note, does not offer a debit card.

4.15% is not the highest yield currently available, but it would put them fourth on this list[0] of ten, making them better than average even on that rarified list. This without fees or minimums, which would put them behind only Betterment, which is not a bank, but a brokerage account.

As always with an Apple offering, there are ways that some people under some circumstances can find better terms so long as they don't care about some of the benefits Apple is offering, but that's a very long way from "below current market rates," and comes from a company a lot of people are already trusting with their funds.

It's fine if you already have an account with UFB, carry on! And next month when it's a different company leading the pack, transfer. And the month after that, while Apple is still consistently in the top five.

0. https://www.investopedia.com/best-high-yield-savings-account...

It's 'below market' only if you don't consider banks with branches part of the 'market'.

That’s from pretty unknown banks. Name brands still matter when it comes to money and banking. Best to compare with Marcus By Goldman Sachs’ 3.9% APY.

FDIC says the national average is 0.35% for savings accounts; Bankrate survey of banks says 0.24%. Granted this included dinosaurs taking advantage of their customers, but the point is that it's weird to use the maximum to make claims about "market rate". Of major institutions that are trying to compete on rates, it seem to be 4.0% +/- 0.5%.

Even the default cash positions for many brokerages (money market funds) are now paying over 4%. Untouched cash positions in my Vanguard and Fidelity accounts are doing better than most CDs or bonds right now.

Is UFB a reputable bank? I've never heard of them, but that rate is hard to pass up.

There are plenty others offering north of 4%, and north of apple's rate, that are reputable (not saying UFB isn't, but it's definitely not a household name).

The delta between, say, 4.55% and 4.8%, on the amounts I'm holding, may not be worth the potential extra headache of working with a lesser known bank. Introducing more risk (or just taking time to open more accounts) to earn, say, an extra $8/month... at some point becomes not worth it.

Very true. It irks me that Chase/WF/etc offer 0.03% or something, what am I supposed to do with that rate, other than take all my money to some other bank?

It's a legitimate bank, but the banking experience feels very third rate, and online reviews are scathing. I opened an account but chickened out from depositing anything after their account linking didn't work and no support for that.

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