Apple launched a savings account with rates 10 times higher than in a bank: how to open it

Apple's new high-yield savings account, which has an interest rate 10 times the national average, has attracted thousands of customers who have deposited a total of $1 billion in the first four days of its launch. New York Post.

Photo: IStock

In just four days, the service, available only to Apple credit card holders, Apple Card, had 240 customers.

On the day of its launch, investors deposited $400 million into their accounts using the service, which is offered in partnership with Wall Street investment giant Goldman Sachs. Apple Card users can now opt for a savings account provided by Goldman Sachs, which currently has a high annual interest rate of 4,15%, making it an attractive option for savers.

4 years ago, Apple and Goldman Sachs first teamed up to create the Apple Card, a cash-back credit card. Bankrate.

How does the account work

An Apple Savings account is available to Apple Card users and is accessible through Apple Wallet. It has no monthly fees and no minimum requirements to open an account or receive APY. However, there is a maximum balance limit of $250.

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Once Apple Card users have set up a savings account from their wallet, they can choose to automatically deposit Daily Cash into the account. Daily Cash is a cash back feature that allows cardholders to get back a percentage of purchases made with their Apple Card.

The account is provided by Goldman Sachs and therefore all funds in the account are insured by the Federal Deposit Insurance Corporation (FDIC).

While money can be transferred to a savings account from a linked bank account or from Apple Cash, the account does not allow you to deposit cash. For Apple Cash transfers, there is a $20 limit that can be made in transfers over a 000-day period, and Apple Cash transfers must be between $7 and $1. The limit does not apply when transferring to or from a linked external account.

An account can only have one owner, which means there is no joint ownership.

What is the benefit

The Apple Savings Account has a very competitive rate. According to Bankrate's weekly survey of banks, the country's average annual savings account rate is 0,26 percent, and Apple's savings account rate is 4,15 percent per annum, more than 15 times the average.

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For those looking for the highest possible savings rates, there are several online accounts offering slightly higher rates. UFB Direct, CIT Bank and Bask Bank are among the banks currently offering APY over 4,50% on their savings products. However, Apple's savings rate is higher than most banks, and especially higher than the rates offered by the big traditional banks.

The Apple Savings account does not require a minimum balance to meet APY, unlike some other high-yielding savings accounts. For example, Bread Financial requires $100 to open its savings account and earn interest, while CIT Bank's top savings rate requires at least $5000 to earn interest.

Notably, although the Apple Savings Account is provided by Goldman Sachs, its rate is higher than that of the Marcus by Goldman Sachs Online Savings Savings Account. The Marcus account offers 3,90% per annum, which is 25 percentage points lower than the Apple Savings rate.

Another difference between an Apple account and a Marcus by Goldman Sachs Online Savings account is the maximum balance. While the maximum amount for a Marcus account is $1 million per savings account, an Apple savings account balance is capped at $250. However, neither account has a minimum deposit requirement or monthly fee.

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Finally, while Marcus Savings customers can transfer up to $100 per day or from other banks, there are no specific restrictions on transfers between Apple Savings and linked external bank accounts. However, transfers between an Apple Savings account and Apple Cash are limited to $000 per week.

Who is suitable for

Given that the Apple Savings account has stricter limits, it may be better for consumers who want to earn a high annual interest rate on a portion of their total savings, or for those with savings of $250 or less who don't need to make large transfers. Please note that the account is only available to Apple Card users.

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