Customers of Apple Cards in the US can open a savings account and begin earning interest right away. Because interest rates are moving so frequently these days, Apple stated when it first introduced the new financial product back in October that it was unable to publish the interest rate that will be paid on these accounts.
Apple will start providing an APY of 4.15% as of right now. According to statistics from Bankrate, you can now locate savings accounts that give an APY of between 3.5% and 4.75%, so it appears to be a competitive offering. Regarding future interest rates, the firm makes no guarantees. It might rise or fall at any time.
For the financial feature, Apple has once again teamed up with Goldman Sachs. Since Goldman Sachs is theoretically in charge of managing savings accounts, the Federal Deposit Insurance Corporation (FDIC) insures any balances.
Customers of Apple Cards are the only ones eligible for this high-yield savings account. Customers receive cash back on all purchases made with their Apple Card. You receive 1% cash back on all transactions by default, and 2% for all Apple Pay transactions. Rewards of 3% become available with certain purchases.
Customers automatically get cash rewards each day into Apple Cash, which displays in the Wallet app and functions somewhat like a bank account. You can use your Apple Cash balance to pay for items with Apple Pay, settle credit card debt, or send money to loved ones. This balance may also be transferred to an ordinary bank account.
Users of the Apple Card have the option of depositing their daily rewards into their savings accounts as of right now. It's a simple approach to save money without giving it any thought.
The Wallet app also allows access to your savings account. You can view your most recent transactions, the current interest rate, and your current balance. Users can manually add or withdraw money from this screen as well. Transferring the money to Apple Cash or a standard bank account is an option.
According to Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, "Savings helps our users get even more value out of their favourite Apple Card benefit — Daily Cash — while giving them an easy way to save money every day." Savings into Apple Card in Wallet allows users to spend, send and save Daily Cash directly and conveniently from one location. "Our goal is to build tools that help users lead healthier financial lives."
Apple's savings account has no fees attached to it. The maximum balance allowed is $250,000 however. There is no minimum balance requirement and the APY of 4.15% is applicable to all balance sizes.