Apple Card customers in the US can open a savings account and earn interest starting today. When the company originally announced the new financial product in October, Apple said it couldn’t share what interest rate would be paid on these accounts because rates fluctuate so widely these days.
As of today, Apple offers an APY of 4.15%. It looks like a competitive offering when you look at data from Bank rate — you can currently find savings accounts with an APY of 3.5% to 4.75%. The company makes no promises when it comes to future interest rates. It can go up and down at any time.
Apple is once again partnering with Goldman Sachs for the banking function. Savings accounts are technically managed by Goldman Sachs, meaning balances are backed by the Federal Deposit Insurance Corporation (FDIC).
This high-yield savings account is made specifically for Apple Card customers. When customers pay with their Apple Card, they get cash back on all purchases. By default, all purchases give you 1% in cash rewards and 2% on all purchases made with Apple Pay. Purchases from selected merchants unlock 3% in rewards.
By default, customers receive cash rewards every day in Apple Cash, a money bag that appears in the Wallet app that works more or less like a checking account. Your Apple Cash balance can be used to pay for things with Apple Pay, for your credit card balance, to send money to friends and relatives. You can also transfer this balance to a regular bank account.
Starting today, Apple Card users can choose to deposit their daily rewards into their savings account. It’s a way to save money without having to think too much about it.
Your savings account can also be accessed from the Wallet app. You will see your current balance, the current interest rate and your most recent transactions. From this screen, users can also add or withdraw funds manually. The balance can be transferred to Apple Cash or a regular bank account.
“Savings helps our users get even more value from their favorite Apple Card benefit – Daily Cash – while providing them with an easy way to save money every day,” said Jennifer Bailey, vice president of Apple Pay and Apple Wallet, in a position. “Our goal is to build tools that help users live healthier financial lives, and by building Apple Card savings into Wallet, they can instantly and seamlessly spend, send and save Daily Cash – all from one place.”
There are no fees associated with Apple’s savings account. However, there is a maximum balance limit of $250,000.