On April 17, Apple launched its Apple savings account with an annual percentage yield of 4.15%. This Apple Card account requires absolutely no minimum balance or deposit- according to the parent company, and the users would be able to set up an account from the Wallet app on their Apple phones. The company further stated in a press release that all the rewards of Daily Cash earned through this card would automatically be deposited into the account for savings.
For those wondering, Daily Cash is the reward program offered by Apple Card that offers around 3% back on purchases. Most users would be able to change where their Daily Cash gets deposited at any point in time and will also be able to add extra funds from their bank account in order to build up their earnings.
Apple savings account gives an APY of 4.15% with no minimum balance
The Apple savings account is being launched through Goldman Sachs. According to the Federal Deposit Insurance Corporation, the national average APY on most savings accounts is just 0.35%, so the 4.15% APY of Apple is quite high in comparison. But the competing savings accounts that are offered by large online banks, credit unions, and brick-and-mortar banks would also be offering their customers quite a significant APY.
For example, CIT Bank routinely offers a savings account with an APY of 4.75% when customers end up depositing a minimum balance of $5,000. Goldman Sachs’ March also has an APY of 3.9% with absolutely no monthly fees or minimum balance. The savings account of Capital One also has no minimum balance, and users would be able to earn an APY of 3.5%. Vio Bank, on its part, offers a savings account with an APY of 4.77%. It has been mentioned that Apple savings account users would be able to manage their accounts using a dashboard that would appear in their Wallet app.
The vice president of Apple Pay and Apple Wallet, Jennifer Bailey, mentioned in a statement, “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. Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly- all from one place.” While there are no fees one can associate with an Apple Savings account, there is indeed a limit on the maximum balance- at $250,000.
Requirements And Other Finer Details
So, what are the requirements in order to open an Apple savings account? As it stands, there are a few credentials that one would have to meet. One should be the owner or co-owner of an active account on one’s Apple Card. One should also have an Apple Card that would be added to their iOS device. The interested customer should be above the age of 18, should have a social security number, and should also be a resident of the United States with a physical US address.
The balances on the Apple Savings account are naturally covered under the FDIC. The Agreement reads, “The Federal Deposit Insurance Corporation insures deposits up to the standard maximum deposit insurance amount per depositor, per FDIC-insured bank, and per ownership category. In determining how much insurance is applicable to your Account, you need to consider all accounts that you hold with us. For more information, visit the FDIC’s 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).”
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Sources
- “Apple launches its savings account with 4.15% interest rate.” NBC News. Ashley Capoot. April 17, 2023.
- “Apple launches Apple Card’s savings accounts with 4.15% interest rate.” Tech Crunch. Romain Dillet. April 18, 2023.