Apple has launched its much-awaited high-yield savings account feature for Apple Card users, offering an impressive 4.15% annual percentage yield (APY) rate.
Partnering with Goldman Sachs
The savings accounts, provided through Goldman Sachs, allow users to earn interest on their Daily Cash rewards from the Apple Card, alongside additional deposits from linked external bank accounts or Apple Cash balances.
In a statement, Jennifer Bailey, Apple’s vice president of Apple Pay, said, “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.”
The New Savings Dashboard
All transactions related to your savings account can now be conveniently managed via a new Savings dashboard in the Wallet app. However, the feature requires your iPhone to install iOS 16.4 or later.
Although competitive, Apple’s 4.15% APY rate is bested by a few other banks’ offerings, which come closer to 5.00% APY.
Frequently Asked Questions
1. How can I open an Apple Card Savings Account?
You can open an Apple Card Savings account through the Wallet app on your iPhone, provided it runs iOS 16.4 or later. You must also have an Apple Card to access this feature.
2. Can I deposit or send money from my Apple Card Savings account?
Yes, you can deposit funds into your Apple Card Savings account from a linked bank account or your Apple Cash balance. You can also send money from your savings account to your linked bank account without incurring fees.
3. How does Apple’s 4.15% APY rate compare to other banks?
While Apple’s 4.15% APY rate is already competitive at ten times the national average of 0.37%, some banks like UFB, Bask Savings, and Bread Savings offer rates closer to 5.00% APY.
4. Is the Apple Card Savings account FDIC insured?
Yes, the Apple Card Savings account provided through Goldman Sachs is FDIC insured.
5. Can I withdraw funds from my Apple Card Savings account?
Yes, you can transfer your savings from your Apple Card Savings account to a linked external bank account whenever you wish to withdraw money.
6. When is the new rate available to customers?
The new 4.15% APY rate for Apple Card Savings accounts is available to customers starting Monday, April 17, 2023.
7. Does Apple Card offer a cash back program?
Yes, the Apple Card offers cash back as a part of its Daily Cash rewards program. Here’s the breakdown of the cash back percentages:
- 3% cash back on all purchases made directly from Apple, such as products, services, and Apple Pay transactions with select merchants.
- 2% cash back on all Apple Pay transactions made at other retailers.
- 1% cash back on all other purchases made with the physical Apple Card.
These cash back rewards are credited as Daily Cash, which can be used for Apple Pay purchases, payments towards your Apple Card balance, or deposited into your new Apple Card Savings account to earn interest.
8. How do I sign up for Apple Card?
To sign up for an Apple Card, follow these steps:
- Update your iPhone: Ensure your iPhone is running the latest version of iOS. Go to Settings > General > Software Update to check for updates.
- Open the Wallet app: On your iPhone, open the Wallet app.
- Tap the “+” button: Tap the “+” button, usually located in the top-right corner of the screen.
- Select “Apple Card”: Choose “Apple Card” from the list of available cards.
- Fill out the application: Complete the application form with your personal information, including your full name, date of birth, phone number, home address, annual income, and the last four digits of your Social Security number.
- Agree to the terms and conditions: Review the terms and conditions, and tap on “Agree” if you accept them.
- Wait for approval: Apple will review your application, and if approved, they will provide you with a credit limit and an APR offer.
- Accept the offer: If you’re satisfied with the credit limit and APR, tap on “Accept Apple Card” to finalize the process. Your digital Apple Card will be added to your Wallet app, and you can start using it immediately.
Please note that the approval process and the credit limit assigned will depend on your creditworthiness. Apple Card is currently only available to customers in the United States.