Apple Card just released a new high-yield deposit account in partnership with Goldman Sachs and it attracts customers with an APY of 4.15%. Compared to cryptocurrencies, the rate is attractive for Apple Card users who already earn Daily Cash from their use of the card but doesn't compare favourably to Coinbase who offer up to 6% APY on different cryptocurrency options.

Limiting cryptocurrency-related yields to stablecoins, crypto.com offers 4.5% on USDC, DAI and USDT, with an additional 3-month lockup for users who stake a balance of the exchange’s CRO token. On the other hand, Crypto has advantages such as global permissionless access and lower basic savings yields which makes DeFi a compelling choice. Both Aave and Compound offer variable supply rates around 2%, while relative newcomer Notional Finance provides up to 6% fixed rate on DAI and USCD.

Though Apple’s offering is very beneficial because it has flexible features and FDIC insurance, DeFi comes with a certain degree of complexity, from smart contract risks and liquidation risks to the need of monitoring collateral ratios. And as of now, there is no capacity for insurance for Notional Finance positions. Though Apple Card’s APY does not compare favorably to the highest rates available in cryptocurrency, Rick McCracken, a Cardano stake pool operator, finds it hard to pass up on this offer.

Apple’s announcement comes shortly after Signature Bank and Silicon Valley Bank’s collapse, causing customers to move their funds to banking giants and making financial products like Apple Card more attractive. Apple Card users can add money to the savings account either from existing bank accounts or through their Daily Cash rewards - but APY may change anytime.

For those new to crypto, attaining competitive yields without taking degen-like risks is still difficult - especially with the current 3-month Treasury bonds rate of 5%. However, the DeFi landscape is evolving rapidly, with consumer-focused products such as built-in insurance, low fees and flexible features driving their appeal.



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