- Apple’s savings account offers a high yield of 4.15%, which is significantly higher than the average interest rate on savings accounts.
- The Apple Savings Account has no minimum deposit or minimum balance requirements, making it accessible to a wide range of individuals.
- The savings account is integrated with the Apple Wallet and iPhone, allowing for easy management and daily cash earnings.
- There are no monthly or annual fees associated with the Apple Savings Account, making it a cost-effective option for savers.
- Opening an Apple Savings Account may not be suitable for those who do not own an iPhone or are not interested in opening an Apple Credit Card.
Apple’s savings account’s high yield of 4.15% caught many by surprise. Our banks have conditioned us to expect very low-interest rates on savings accounts.
Typical low-yield savings accounts may have an interest rate as low as .01%. So, yes, when Apple says it will pay 4.15% interest on its savings account, our ears are perked!
Savings accounts, certificates of deposit, and money market accounts are methods of increasing the rate of return on our savings. Who doesn’t want to earn more money on their savings? We sure do!
Today, we’ll burrow through all the marketing blitz and help you decide if the saving account makes sense for your finances.
Some Background on the Apple Savings Account
Apple introduced its version of a savings account in April of 2023. Within the first few days, the program hauled in over a billion dollars in new deposits. So far, this new corner of Apple’s business has deposited over ten billion dollars just a few short months into existence.
Traditional (and even high-yield) savings accounts have a tried and true format. In a low-yield savings account, the bank will pay the depositor (that’s you!) a very tiny interest rate. Current interest rates have an average APY of roughly 0.42%. It’s not uncommon for a brink and mortar bank to offer .01% APY.
The high-yield savings account offers higher interest rates than traditional savings accounts but generally has a few strings attached to the purse. You’ll need a minimum deposit (a few thousand dollars) or maintain a minimum balance to qualify for higher interest rates. Miss the minimums, and you may find yourself with a 0.0% APY. Ouch!
Apple teamed up with Goldman Sachs Bank USA and introduced the Apple Savings Account. The savings account offers a high-yield savings account but minus the onus of minimum balances and high opening balance requirements. The catch with Apple’s accounts is that the user must own an iPhone and open an Apple Credit Card to be eligible for the savings account.
If you’re careful with your finances and pay attention to the details, the savings account may be an opportunity to snag a little piece of the pie with low risk. Goldman Sachs is currently having a discussion with Apple about leaving the partnership. Too much money flows “out,” and too little cash flows “in.” Goldman Sachs lost over one billion dollars after the high-yield savings accounts were introduced.
Quick Facts About the Apple Savings Account
|Interest Rate||4.15% APY|
|Monthly Service Fee?||None|
|Cash Earning||3% daily, no limit|
Reasons to Sign Up
The savings account integrates the ease of the Apple Wallet with the functionality of a high-yield savings bond. The interest rate is high enough to capture our eye and is worthy of exploration to see if it’s too good to be true.
Let’s talk about the main reasons you should consider enrolling.
If you walk into a typical bank or credit union and open a savings account, you can expect to earn an interest rate of approximately 0.42% annual percentage yield (APY). The Apple savings account is offering 4.15% APY.
Compared to “traditional” savings accounts APY, Apple’s APY is quite eye-catching. When stacked up against high-yield savings accounts APY, Apple’s interest rate is pretty competitive.
Unlike traditional or high-yield savings accounts, the Apple Savings account doesn’t require a minimum opening balance. Many banking institutions insist on a minimum deposit to open a savings account. High-yield savings accounts may also need a deposit and the dollar amount may run into the thousands.
The savings account has no minimum account balance required. Many banks also apply minimum balance thresholds. Failing to meet the stipulated minimum balance (read the fine print!) isn’t a good thing. (A reduction or removal of the earned interest may occur.) Apple Savings has no such penalty!
Monthly Service Fee
Traditional savings and high-yield savings accounts quite often set a minimum balance threshold. If you keep the account balance above this threshold, there are no monthly service fees. Drop below the stipulated dollar point and you’ll pay a flat monthly fee or lose out on any earned interest from that month. The Apple savings card has no monthly service fee.
Now, let’s talk about that monthly service fee. The Apple savings account requires that you have an Apple credit card. The credit card has no fees, but the interest rate on the card (what you spend) is between 15.99% and 26.99%. You may find a six-month introductory rate of zero percent, but after six months, the interest rate goes up.
Anytime you purchase with the Apple Card, a cash-earning reward is awarded.
The cash earnings are applied every day to every purchase you make. Other credit cards may earn cash at the end of each billing period but not during the billing period. Daily payout to your savings accounts and the interest you’ll accrue every day is a nice touch.
|How and Where||Percentage Earned|
|Apple, Ace, T-Mobile, Nike, Uber, Uber Eats, Panera, Walgreens, Exxon, Mobil||3%|
|2% cash back when you use the|
Apple credit card with Apple Pay
|1% cash back when you use the Apple credit card when Apple Pay isn’t an option||1%|
The savings account has no monthly fee balance or maintenance fees. Other types of low-yield savings accounts may have a monthly payment that’s waived if the account balance exceeds a minimum threshold. High-yield savings accounts may skip monthly interest if a minimum balance (often in the thousands of dollars) isn’t met.
Overall, there are no late, foreign transactions, processing, annual, or hidden fees.
The savings account requires you to have an iPhone with iOS 16.4 or later. If you have an iPhone, open the Wallet application and select the Apple Card. The iPhone will provide you with step-by-step instructions on including the Apple Card as a payment option and configuring the daily cash setting.
Alternatives to Apple’s Savings Account
If you’re an Android cell phone user or want to avoid opening an Apple Credit Card, we have a few excellent savings accounts to consider.
- Synchrony High-Yield Savings Account offers 4.5% APR, no minimum balance, no fees, and an ATM card for easy cash access.
- Capital One 360 Performance Savings offers 4.30% APR, no minimum balance, no fees, and free checking accounts.
- Milli has a very attractive APR of 5.25%, no fees, and no minimum account balance.
If you’re shopping for the best savings account APY, recognize that the high-interest rate is possible (in part) by the financial institution having no brick-and-mortar bank. You don’t go to “the bank” to withdraw cash from your savings account. You’ll transfer funds from one electronic account (Like Apple Savings Account) to another electronic account (like your personal bank).
Signs You Need a Savings Account from Apple
If you already have a savings account, opening an Apple Savings account may not make sense. Apple savings accounts require you to open an Apple credit card account before opening an Apple savings account. If you don’t (currently) have a savings account and own an iPhone, you should consider an Apple savings account.
Switching from a low-interest savings account to an Apple savings account makes sense if you’re willing to work within the framework of the Apple credit card. The savings account is a good fit if you pay off the balance each month. Opting to carry a credit card balance from month to month, the high-interest rate of the Apple Credit card will consume the interest you’ve accrued on your savings account.
If you already have a savings account but need help with leaving the funds alone, the Apple savings account may be a good fit for you too. Apple’s savings account is tied to your bank account, but it takes time (about a few days) for money to transfer from your Apple savings account to your personal checking or savings account. The lack of immediate access to cash (from an ATM) may help you with your overall savings plan.
5 Reasons You May Want to Sign up for Apple’s Savings Account
|Reasons to Sign Up Today|
|1. You’ll get a high-interest rate.|
|2. There are no monthly or annual fees.|
|3. You won’t find a minimum balance requirement.|
|4. No minimum deposit is required for account start-up.|
|5. It’s integrated with Apple iPhone and Apple Wallet.|
The Apple Savings Account interest rate is one of the highest interest rates available for savings accounts. The savings account doesn’t have a minimum deposit to open the account and doesn’t require a minimum monthly balance. The lack of fees of any kind makes Apple’s savings account something to seriously consider if you’re in the market for a high-yielding savings account.
The image featured at the top of this post is ©technomolly/Shutterstock.com.