Picture credits: Apple
Apple Card customers in the United States can open a savings account and earn interest through an Apple Savings Account. To learn more about Apple’s new offering, click here. When the company initially announced the new financial product in October, Apple said it couldn’t share the interest rate that would be paid on those accounts because rates fluctuate so much these days.
Starting today, Apple will offer an APY of 4.15%. It looks like a competitive offer when you look at data from Bankrate – you can currently find savings accounts that offer an APY of 3.5% to 4.75%. The Company makes no promises regarding future interest rates. He can go up and down at any time.
Apple again partnered with Goldman Sachs for the banking function. Savings accounts are technically managed by Goldman Sachs, which means balances are covered by the Federal Deposit Insurance Corporation (FDIC).
This high-yield savings account was created specifically for Apple Card customers. When customers pay with their Apple Card, they receive cash back on all purchases. By default, all purchases earn you 1% cash rewards and 2% for all purchases made with Apple Pay. Purchases from select merchants unlock 3% rewards.
By default, customers receive daily cash rewards in Apple Cash, a pocket of money that appears in the Wallet app and functions 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, or to send money to friends and family. 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 accounts. It’s a way to save money without having to think too much about it.
Your savings account is also accessible from the Wallet app. You can see your current balance, current interest rate, and your most recent transactions. From this screen, users can also manually add or withdraw money. 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 statement. statement. “Our goal is to create tools that help users lead healthier financial lives, and creating savings in Apple Card in Wallet allows them to spend, send, and save daily money directly and seamlessly – all from one place.”
There are no fees associated with the Apple Savings Account. However, there is a maximum balance limit of $250,000. APY of 4.15% applies to any balance and no minimum balance is required.
Apple Card Savings Account, Explained:
What are the requirements for opening an Apple Savings Account?
You must first meet the following credentials in order to open an account:
- You are the owner or co-owner of an active Apple Card account.
- You have an Apple Card added to your iPhone or iOS device.
- You are at least 18 years old.
- You have either a social security number or an individual tax identification number.
- You are a US resident with a physical address in the United States.
- You have set up two-factor authentication for your Apple ID with the latest version of iOS.
How do I open an Apple Card savings account?
- Open the Wallet app on your iPhone or iOS device and tap “Apple Card”.
- Tap the More button, then tap “Daily Cash”.
- Tap “Set up” next to “Savings” and follow the on-screen instructions to access the savings account app.
You can either transfer funds from your Apple Cash balance to your new savings account or transfer funds from another bank account.
Is the Apple Card Savings Account FDIC insured?
Yes, balances are covered by the FDIC. Apple’s savings deposit account agreement reads as follows:
The Federal Deposit Insurance Corporation insures deposits up to the standard maximum amount of deposit insurance per depositor, per FDIC-insured bank, and per ownership class. To determine the amount of insurance applicable to your account, you must consider all of the accounts you have with us. For more information, visit the FDIC website or call the FDIC directly at 1-877-ASKFDIC (1-877-275-3342). You can also refer to the FDIC’s Electronic Deposit Insurance Estimator (EDIE).
Are there any monthly fees associated with an Apple Savings Account?
No, there are no fees associated with an Apple Savings Account.
Is there a minimum balance for an Apple Card Savings Account?
No, there is no minimum deposit required to open an account or to earn the stated APY.
Do you need an Apple Card to have an Apple Card Savings Account?
Yes, you must be an owner or co-owner of an Apple Card as defined in the Apple Card Customer Agreement.