Apple Card savings account was a ****ing mistake – Goldman exec
9to5mac.com
A Goldman Sachs exec reportedly responded to the announcement of the Apple Card savings account by immediately declaring it a...
  • sosodev@lemmy.world
    231·
    1 year ago

    I don’t understand how they could be taking such a big loss on those accounts. Federal reserve rates are above 5%…

    Also, it’s hard to feel bad for the bank taking a billion dollar loss when they have like 1.5 trillion dollars in assets.

    • reddig33@lemmy.world
      51·
      1 year ago

      Sounds like someone doesn’t know how to run a bank. That’s ok though, Apple has plenty of money, a loyal customer base, and plenty of other suitors. I’m sure if Goldman is no longer interested that someone else will be.

  • InvaderDJ@lemmy.worldEnglish
    15·
    1 year ago

    Last year I remember seeing some stories about GS’s issues being caused by people defaulting on the card. It isn’t hard to get approved, so if you have even a middling credit score you can get the credit card. So at first it made sense that a bunch of people who probably shouldn’t have been approved for a credit card got one and got in over their heads.

    That being said, the idea of people just not paying interest makes more sense to me. The Apple Card is probably the easiest card to see how much your balance impacts the interest paid. I’ve had the card since it came out and have never paid a dime of interest. I also only use it with Apple Pay meaning at minimum I get 2% cash back. Add to that, the savings account where I get 4.15% every month year. Again, with no fees or interest. I can see that hitting their bottom line.

    I’ll play the world’s smallest violin for them. I only hope if GS does offload the program to someone else the terms don’t get worse. Because it has only been upside for me since it launched.

    EDIT: Clarified the interest is 4.15% a year, not a month.

    • TORFdot0@lemmy.worldEnglish
      81·
      1 year ago

      You can still make money on a payment card off the interchange fees. Unless this if a different story than the one that went around this summer GS isn’t actually losing money on the card, profits aren’t just growing at the rate they want. Apples software makes it easy to see how much you need to pay to avoid interest and gives flexible 0% financing options. So what if they aren’t making money off of interest and late fees. Being anti consumer isn’t the only way to make money in finance.