Starting now, customers of the Apple Card in the United States can open a savings account and earn interest. When Apple initially announced the new financial product in October, it was unable to reveal the interest rate that would be paid out on these accounts due to fluctuating rates in the industry.
As of now, the company has decided to offer an APY (Annual Percentage Yield) of 4.15%, which appears to be a competitive rate in comparison to other savings accounts currently available in the market. For instance, other savings accounts offer an APY of 3.5% to 4.75%. Apple does not promise a fixed interest rate as it is subject to change at any time. Goldman Sachs is Apple’s partner for this banking feature, and the savings accounts are technically managed by Goldman Sachs. As a result, the Federal Deposit Insurance Corporation (FDIC) covers the balances.
This high-yield savings account has been exclusively designed for Apple Card customers. Customers receive cash back on all purchases made with their Apple Card. By default, all purchases provide a cash reward of 1%, and 2% for all purchases made using Apple Pay. Certain merchants offer 3% in rewards for purchases.
Customers receive daily cash rewards in their Apple Cash account by default, which is a digital wallet that appears in the Wallet app and works similarly to a checking account. Apple Cash can be used to pay for purchases using Apple Pay, to pay off your credit card balance, or to transfer money to friends and family members. The balance in Apple Cash can also be transferred to a regular bank account.
Starting today, Apple Card customers can choose to deposit their daily rewards into their savings accounts. It’s an easy way to save money without much effort.
The Wallet app displays the savings account, which allows users to check their current balance, the current interest rate, and their recent transactions. Users can also manually add or withdraw money from this screen. The balance can be transferred to Apple Cash or a regular bank account.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in a statement, “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. 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.”
There are no fees associated with Apple’s savings account. However, there is a maximum balance limit of $250,000.
