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On Monday, Apple unveiled its new Apple Card savings account that offers an annual percentage yield of 4.15%. According to Apple, the account has no minimum deposit or balance requirement, and users can easily set it up from the Wallet app on their iPhones. However, to open the savings account, users must have an Apple Card.
According to a press release by the company, Apple stated that the savings account linked with Apple Card will receive all Daily Cash rewards earned through the card automatically. Daily Cash is a reward program that offers up to 3% back on purchases made with Apple Card. Users have the flexibility to change the destination of their Daily Cash rewards and can also add funds from their bank account to increase their savings.
The savings account is being introduced by Apple in collaboration with Goldman Sachs. The national average annual percentage yield (APY) on savings accounts is only 0.35%, as per the Federal Deposit Insurance Corporation. Thus, compared to this, Apple’s 4.15% APY is considerably higher. However, other large credit unions, online banks, and traditional brick-and-mortar banks may also offer customers a competitive APY with their savings accounts.
Various banks and financial institutions offer competitive APYs for savings accounts. For instance, CIT Bank provides a savings account with a 4.75% APY if customers deposit a minimum balance of $5,000. Marcus by Goldman Sachs offers a 3.9% APY with no minimum balance or monthly fees. Capital One’s savings account has no minimum balance, and users can earn a 3.5% APY. Additionally, Vio Bank provides a savings account with a 4.77% APY and no minimum balance.
Users of the Apple Card savings account can now manage their accounts through a dashboard located in the Wallet app. With this feature, they can keep track of their interest rates, account balances, and even withdraw funds. The dashboard is now being rolled out on iPhones, so if you don’t see it immediately, check back later.
