Apple Card customers in the U.S. now have access to open a savings account and earn interest, this started on Monday. The company originally announced the new financial product back in October, when the announcement was made, Apple said that it couldn’t reveal what interest rate would be paid out on these accounts because rates are fluctuating so much these days.
Apple is currently offering an APY of 4.15% as of today. According to Bankrate data, it appears to be a competitive offering. Currently, you can find savings accounts that offer an APY of 3.5% to 4.75%. When it comes to future interest rates, the company makes no promises. It could fluctuate up and down at any time.
For the banking feature, Apple has once again partnered with Goldman Sachs. Goldman Sachs technically manages savings accounts, which means that balances are insured by the Federal Deposit Insurance Corporation (FDIC).
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This high-yield savings account is only available to Apple Card holders. Customers who pay with their Apple Card receive cash back on all purchases. By default, all purchases earn you 1% in cash rewards and 2% for Apple Pay purchases. Purchases from select merchants earn you 3% back in rewards.
Customers receive cash rewards every day by default into Apple Cash, a pocket of money that appears in the Wallet app and functions similarly to a checking account. Your Apple Cash balance can be used to pay for items with Apple Pay, to pay off your credit card balance, or to send money to friends and family. This balance can also be transferred to a regular bank account.
Apple Card users can now choose to deposit their daily rewards into their savings accounts beginning today. It’s a simple way to save money without having to think about it too much.
Your savings account is also accessible via the Wallet app. You can view your current balance, interest rate, and most recent transactions. Users can also manually add or withdraw money from this screen. The remaining balance can be transferred to Apple Cash or a traditional bank account.
“Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in a statement. “Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place.”
Apple’s savings account has no fees attached to it. There is, however, a maximum balance limit of $250,000. The 4.15% APY applies to any balance size, and there is no minimum balance requirement.
It’s worth noting that interest rates can change over time and may vary based on the financial institution, account type, and other factors. Additionally, while a high-interest savings account can be a useful tool for growing your savings, it’s important to consider other factors such as fees, account minimums, and accessibility when choosing a savings account.
