If you are an Apple Card user, you might be interested in a new feature that Apple has launched today: a high-yield savings account that lets you grow your Daily Cash rewards and save money with a competitive interest rate. Here's everything you need to know about this new option and how it works.
What is the Apple Savings account?
The Apple Savings account is a new savings account that users with an Apple Card can choose to open. Apple is marketing it as a "high-yield" savings account that users can deposit their Daily Cash into in order to get more out of the rewards they earn with their Apple credit card.
Daily Cash is the cashback program of the Apple Card, which gives users 3% back on purchases made with Apple or select partners, 2% back on purchases made with Apple Pay, and 1% back on purchases made with the physical card. Users can access their Daily Cash through their Apple Cash card, which is a virtual debit card that can be used to send money, pay bills, or make purchases.
With the new savings account, users can choose to automatically deposit their Daily Cash into their savings account instead of their Apple Cash card. The savings account offers a 4.15% annual percentage yield (APY), which is the interest rate that users will earn on their deposits over a year. This rate is much higher than the average savings account rate in the US, which is around 0.04% according to Bankrate.
The savings account is provided by Goldman Sachs, which is also the issuer of the Apple Card. The account is FDIC insured up to $250,000 per depositor, meaning that users' money is protected in case of bank failure.
How to set up and manage the Apple Savings account?
Users can set up and manage their savings account directly from their Apple Card in Wallet, without any fees, minimum deposits, or balance requirements. To set up the account, users need to tap on their Apple Card in Wallet, then tap on Savings, and follow the instructions to link their bank account and agree to the terms and conditions.
Once the account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. Users can also deposit additional funds into their savings account through their linked bank account or from their Apple Cash balance.
Users can also withdraw funds from their savings account at any time through the Savings dashboard in Wallet by transferring them to their linked bank account or to their Apple Cash card, with no fees.
Users can also track their account balance and interest earned over time through the Savings dashboard, where they can also adjust their settings or close their accounts if they wish.
What are the benefits and drawbacks of the Apple Savings account?
The main benefit of the Apple Savings account is that it allows users to earn more interest on their Daily Cash rewards and other savings than they would with a typical savings account or with their Apple Cash card. This can help users build up their savings faster and achieve their financial goals.
Another benefit is that the savings account is integrated with the Apple Card and Wallet app, making it easy and convenient for users to set up and manage their accounts without having to deal with another app or bank. Users can also enjoy the security and privacy features of Apple Pay and Wallet, such as Face ID or Touch ID authentication and end-to-end encryption.
The main drawback of the Apple Savings account is that it is only available for Apple Card users who use an iPhone or iPad. Users who don't have an Apple Card or use another device will not be able to access this feature. Users who have an Apple Card but prefer to use another credit card for most of their purchases might also not benefit much from this feature, as they will not earn much Daily Cash to deposit into their savings account.
Another drawback is that the interest rate of 4.15% APY might not be guaranteed for long, as it could change depending on market conditions or other factors. Users should always compare different savings options and check the current rates before opening an account.
Is the Apple Savings account worth it?
The Apple Savings account might be worth it for users who are loyal to the Apple ecosystem and use their Apple cards frequently for purchases. For these users, this feature can be a great way to boost their savings and earn more interest on their rewards without much hassle.
However, for users who don't have an Apple Card or use another credit card more often, this feature might not be very appealing or useful. These users might be better off looking for other high-yield savings accounts or investment options that suit their needs