A Complete Guide to Apple’s High-Yield Savings Account: What You Need to Know

transaction authentication woman holding credit card and phone purchase

A Complete Guide to Apple’s High-Yield Savings Account: What You Need to Know

A high-yield savings account is a special type of savings account that offers members above-average interest rates for their deposits. This type brings in much higher returns than traditional savings accounts. Following the introduction of the Apple Card in 2019, Apple launched a high-yield savings account in April 2023. But how do you enroll in Apple’s high-yield savings account? What are the particulars of this account type? Allow us to explain. Here’s what you need to know.

5 Must-Know Facts About Apple’s High-Yield Savings Account

  • The average APY (or annual percentage yield) for a savings account in America is 0.39%. Apple’s APY offers more than ten times this rate.
  • Members can fund their accounts with deposits from an external bank account linked to their Apple Card. Accounts also automatically collect Apple Card’s cash back rewards.
  • While there’s no minimum balance associated with Apple’s high-yield savings account, there is a maximum one. Accounts are only FDIC-insured up to $250,000.
  • The day Apple’s high-yield savings account launched, it saw over $400 million in deposits. Within the first four days, users had deposited nearly $1 billion. A quarter of a million accounts were opened within the first week.
  • Released in partnership with Goldman Sachs, the APY for Apple Card’s high-yield savings account was initially higher than Goldman Sachs’s high-yield savings account APY of 3.9%. Goldman Sachs later raised its figures to match the percentage associated with Apple’s.

Apple’s High-Yield Savings Account: Specs

IntroducedApril 17th, 2023
PartnerGoldman Sachs Bank USA
Minimum Balance$0
Maximum Balance$250,000
Monthly Fee$0
Excessive Transactions Fee$0
Maximum TransactionsNo limit
Checking AccountNo
Overdraft FeesNo
PrerequisitesMust own Apple Card

Apple’s High-Yield Savings Account: How To Sign Up

Those hoping to sign up for Apple’s high-yield savings account can do so from the Wallet app on their iPhone, iPad, or Mac. As a prerequisite, you must have an Apple Card account to sign up. You must also have an iPhone or compatible Apple device to sign up for the Apple Card. Card management and card controls are all kept within the Wallet app — an exclusive Apple operating system. The Wallet app can’t be downloaded on a rival OS.

Even if you have a compatible device and have already enrolled in the Apple Card, you still might not be eligible for a high-yield savings account. Some additional requirements exist. Apple requires you to be a legal U.S. resident with a valid U.S. address. You must also have a social security or individual taxpayer identification number. Beyond this, you must also be over 18 and have iOS 16.4 or later. Lastly, you have to enable two-factor authentication for your Apple ID.

You can officially set up a savings account if you check all these boxes. First, go to the Wallet app. Then, tap your Apple Card. Hit the “More” button in the corner of the screen. After that, hit Daily Cash. Tap “Set Up” next to the “Savings” button. From here, follow the on-screen instructions to finish the setup. You’ll be asked whether you want to start earning interest on your Apple Cash balance by transferring the funds to savings. If you’re going to do this, hit “Transfer.” If you don’t, hit the “Close” button.

A physical Apple Card beside an iPhone displaying the Apple Card logo.
You need an Apple Card to sign up for a high-yield savings account.

History of Apple’s High-Yield Savings Account

Apple’s high-yield savings account dates to last fall. The company initially announced plans for an Apple Card savings account on October 13th, 2022. In its initial press release, Apple teased the ability for users to deposit their Daily Cash rewards and grow them in a high-yield savings account backed by Goldman Sachs. This surprised some analysts, who had heard murmurings that Goldman Sachs would stop backing consumer credit cards after facing nearly $1 billion in losses.

Apple gave no official date in their October announcement, simply saying the high-yield savings account would be arriving “in the coming months.” However, the tech giant stated that only Apple Card users can open the new high-yield savings account. Throughout the original press release, Apple kept emphasizing the close connection between the savings account and the Apple Card cash-back rewards. Users can automatically deposit Daily Cash into their high-yield savings account without fees, minimum deposits, or minimum balance requirements.

In closing, Apple filled the press in on what the signup process would look like. According to the press release, Apple Card users will set up and manage the high-yield savings account from within the Apple Card settings in the Wallet app. From there, users could have all Daily Cash balances automatically deposited into the savings account or sent to their Apple Cash card. The initial press release said nothing about APY or other specific fees — it merely said Daily Cash transfers would be fee-free.

Origins Of The Apple Card

Of course, you could trace the history of Apple’s high-yield savings account back to the origins of the Apple Card in August 2019. Apple offers this credit card in partnership with Goldman Sachs. Introduced five years after the launch of Apple Pay, the Apple Card was designed to integrate seamlessly with Apple’s web of products and services. Customers can use the card in conjunction with Apple Pay. This makes paying with an Apple Card from their iPhone, iPad, Apple Watch, or Mac easy.

Like almost everything Apple does, the Apple Card is advertised as a simple, easy-to-use alternative to the more complicated options on the market. (In this instance, that market is the credit multi-billion-dollar card industry.) The Apple Card offers zero annual fees, no foreign transaction fees, and a straightforward cash-back rewards program called Daily Cash. Users earn Daily Cash on every purchase made with the Apple Card. The money can be used instantly or transferred to a bank or high-yield savings account.

As if these features weren’t impressive enough, the physical Apple Card is equally alluring. Made of heavy, shiny titanium and sporting Apple’s typically minimalist design, the Apple Card only displays the cardholder’s name and the Apple logo. Users can track spending, statements, and payments all within the Wallet app. Apple also introduced the Apple Card Family plan in April 2021, introducing support for joint accounts and up to five additional cardholders. Apple Card Family was the first major upgrade since its launch (and the last before the high-yield savings account).

Apple Pay logo on an iPhone screen being used for public transportation.
The Apple Card — and its high-yield savings account — integrate seamlessly with Apple Pay.

The Public Response

The public response was cautiously optimistic after Apple announced its plans for a high-yield savings account. Everything Apple teased sounded incredibly appealing — but some wondered what the eventual catch would be. It mirrored the public’s response to the Apple Card’s announcement. It sounds nice and straightforward on paper, but would it be that nice and simple in practice? For the Apple Card, the answer was a resounding yes. But would that also apply to the high-yield savings account?

Six months after the announcement, the answer was also yes. In the first few days alone, Apple’s high-yield savings saw nearly a billion dollars in deposits across almost a quarter of a million accounts. That’s an average of around $4,000 deposited per account! It was hard for the public to find any faults in this exciting new offering from Apple and Goldman Sachs as it had allowed limitless transactions and had no minimum balance requirement. The account also had no monthly fees, excessive transaction fees, and no overdraft fees,

The only legitimate complaints from the public had to do with the APY and the exclusivity of the savings account itself. While 4.15% is more than ten times the annual percentage of a traditional savings account, other high-yield savings accounts have higher percentage rates. Additionally, some were frustrated at the number of steps a potential accountholder must take to qualify for an account. You must have a compatible Apple device, must have an Apple Card, and must meet the other listed parameters, as well.

Apple’s High-Yield Savings Account: Pros and Cons

ProsOther high-yield savings accounts offer higher APYs
Easy to set upNo ATM card to access cash
Very few limitsMust have an Apple Card to sign up
No feesMaximum balance set at $250,000
Seamless integration with Apple Pay, Apple Cash, and Daily CashOther high yield savings accounts offer higher APYs

Should You Enroll In Apple’s High-Yield Savings Account?

So, is Apple’s new high-yield savings account with Goldman Sachs worth enrolling in? If you have an Apple Card, rack up lots of Daily Cash, and have a nice chunk of change set aside in savings already, then this high-yield savings account might be well worth your time. However, if you don’t have an Apple Card, didn’t plan to sign up for a credit card anytime soon, or don’t have much of a savings account, enrolling might not be a good idea. The same goes for those with less-than-ideal credit scores — applying for a credit card will likely knock your score down a few pegs.

Frequently Asked Questions

How do high yield savings accounts work?

High-yield savings accounts work like regular ones but have a higher annual percent interest accrued. You deposit money into the account like any other savings account, but the bank pays you a greater interest on that balance. This higher interest rate is the key difference compared to a traditional savings account. However, these rates vary from institution to institution. The same goes for how the interest is compounded, daily or monthly.

Are high yield savings accounts safe?

High-yield savings accounts are typically considered safe and easy ways to earn money. However, it’s essential to ensure that the high-yield savings account is FDIC-insured or covered by a similar deposit insurance program in countries outside of the United States.

FDIC insurance protects your deposits up to a specific limit per bank — typically $250,000. This means that even if the bank faced financial difficulties, your deposits would still be protected up to the insured limit.

How do you sign up for Apple Card?

To apply for the Apple Card, first open the Wallet app on your iPhone and follow the prompts on screen. Apple will ask you to provide personal information such as your name, address, and Social Security number. The application process then moves onto a credit check. If approved, you’ll receive a virtual version of your Apple Card instantly. Your physical titanium Apple Card will arrive later — around 6-8 business days.

Is the Apple Card safe?

Apple and Goldman Sach’s Apple Card is both secure and private. Each Apple Card transaction is authorized with a unique, device-specific number and requires biometric authentication (such as Face ID or Touch ID). Additionally, Apple never stores your transaction details on its servers or shares them with third parties.

Beyond this, the physical Apple Card itself doesn’t display the card number, CVV, or expiration date, adding an additional security layer. If you misplace your card, you can freeze it immediately from the Wallet app and request a replacement if needed.

What are the benefits of Apple Card?

The Apple Card has no annual or foreign transaction fees and has a simple cash back rewards program called Daily Cash. You earn this cash back on every purchase, with even higher rates for Apple purchases. You can use the Daily Cash to fund future purchases or transfer to your bank or high-yield savings account. The card provides detailed spending summaries and integrates seamlessly with Apple Pay and the Wallet app for easy management.

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