Apple Introduces High-Yield Savings Account for Apple Card Customers
Savings Account Feature Offers a 4.15% Interest Rate to its users, allowing them to easily grow their savings while making the most of their daily cash rewards.
Tuesday April 18, 2023,
2 min Read
Starting today, Apple Card customers in the United States can open a high-yield savings account and earn interest. Initially announced in October, Apple did not reveal the interest rate for these accounts, citing fluctuating market conditions. However, the company has now confirmed a competitive annual percentage yield (APY) of 4.15%.
The current market offers savings accounts with APYs ranging from 3.5% to 4.75%, according to Bankrate data. Apple has not made any promises about future interest rates, which could increase or decrease at any time.
For this new banking feature, Apple has again partnered with Goldman Sachs. The investment bank will manage the savings accounts, ensuring that account balances are protected by the Federal Deposit Insurance Corporation (FDIC).
Designed specifically for Apple Card customers, the high-yield savings account complements the existing cashback rewards system. Users typically receive 1% cashback on all purchases, 2% on those made using Apple Pay, and 3% when buying from select merchants. By default, cash rewards are deposited daily into the user's Apple Cash, which functions similarly to a checking account.
Now, Apple Card users can opt to have their daily rewards deposited into their new savings accounts instead. This offers a seamless way to save money without requiring additional effort. Customers can access their savings accounts through the Wallet app, where they can view their current balance, interest rate, and recent transactions. From this screen, users can also add or withdraw funds, transferring the balance to Apple Cash or a traditional bank account if desired.
Jennifer Bailey, Apple's Vice President of Apple Pay and Apple Wallet, stated that the savings feature provides additional value to Apple Card users, helping them lead healthier financial lives.
There are no fees associated with the new Apple savings account. However, a maximum balance limit of $250,000 has been set, with the 4.15% APY applicable to any balance size and no minimum balance requirement.