For Apple Card users, great news! You can create a savings account with an annual percentage yield of 4.15% as of right now. When Apple first announced this new financial product back in October, they couldn’t reveal what interest rate would be paid out on these accounts due to fluctuating rates. However, according to Bankrate, Apple’s offer is competitive with savings accounts from other banks that now provide an APY of 3.5% to 4.75%.
All savings account balances are protected by the Federal Deposit Insurance Corporation , and they will be managed by Goldman Sachs, a dependable partner of Apple. The high-yield savings account is exclusively designed for Apple Card customers, allowing them to earn cash rewards when using their Apple Card for purchases. By default, customers get 1% in cash rewards on all purchases and 2% for Apple Pay purchases. Some merchants also offer 3% in rewards.
Apple Cash, a feature of the Wallet app that works like a checking account, receives daily cash rewards.Customers can move their remaining Apple Cash amount to a conventional bank account or use it to pay for Apple Pay purchases or credit card balances. Customers can choose to deposit their daily incentives into their savings accounts using this new service, which makes saving money simple and mindless.
Accessible from the Wallet app, the savings account allows customers to view their current balance, the interest rate, and recent transactions. Users can manually add or withdraw money, and transfer the balance to Apple Cash or a regular bank account. “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,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet.
Apple’s savings account has no fees, and there is no minimum balance required. However, the maximum balance allowed is $250,000. While Apple hasn’t made any promises regarding future interest rates, this new feature is a great way for customers to make the most of their Apple Card benefits and save money easily.