Apple now offers a savings account with the Apple Card Savings Account. Here’s what you need to know about it…
Apple has announced a new financial service: the Apple Card Savings Account. This is yet another foray by the iPhone maker to get into financial services. And given the excitement around the Apple Card Savings Account, Apple probably has a hit on its hands.
But also, the number of financial services Apple now offers could leave some users confused. Here’s a brief rundown about what’s what:
- Apple Wallet: this isn’t actually a financial service from Apple. Instead, it’s a digital wallet app that is included in iOS. It allows you to keep your credit and debit cards in it, as well as your driver’s license, movie tickets, airplane passes, and more.
- Apple Card: this is a credit card Apple offers. The Apple Card lives in the Wallet app on the iPhone. You need to apply to get an Apple Card like you need to apply for any other credit card.
- Apple Pay: this is Apple’s payment platform that allows you to load your debit and credit cards onto you iPhone, where they will live in the Wallet app. You can then use the credit and debit cards on your iPhone via Apple Pay for payment at contactless terminals. In other words, you can leave the physical cards at home and just use them via your iPhone.
- Apple Card Savings Account: this is the new financial service Apple has just announced. Let’s look more into this one now…
Apple Card Savings Account: What Is It?
The Apple Card Savings Account is an addition to the Apple Card. With the Apple Card, users can earn Daily Cash rewards they can then use however they like. But with the introduction of the Apple Card Savings Account, that Daily Cash is automatically deposited into the new savings account, where it will earn interest just like any other savings account.
Apple Card Savings Account: What Is The Interest Rate?
Upon its launch in April 2023, the Apple Card Savings Account interest rate is 4.15%. That’s an insanely good interest rate for a savings account. Apple even points this out, noting that it’s “a rate that’s more than 10 times the national average.”
However, don’t get too excited that the Apple Card Savings Account will always have a high interest rate. As the fine print on Apple’s press release notes: “Annual Percentage Yield (APY) is 4.15 percent as of 4/14/2023. APY may change at any time. Maximum balance limits apply.”
Apple Card Savings Account: Where Is The Money Held?
While the Apple Card Savings Account has “Apple” in the name, Apple isn’t actually a bank, so it doesn’t hold your cash. Rather, the Apple Card Savings Account is actually a savings account through the banking giant Goldman Sachs.
Apple Card Savings Account: What Are The Requirements?
In order to get an Apple Card Savings Account you’ll need to apply for an Apple Card. Currently, there’s no way to just open an Apple Card Savings Account without getting an Apple Card first.
The Apple Card Savings Account also requires that your iPhone is running iOS 16.4 or later. Finally, the Apple Card Savings Account – like the Apple Card itself – is only available to “qualifying applicants in the United States.”
Apple Card Savings Account: How Do You Manage It?
As with the Apple Card itself, the Apple Card Savings Account is managed in the Wallet app, which comes with the iOS operating system.
Apple Card Savings Account: Anything Else To Know?
Apple clearly sees financial services as part of its future – the Apple Card Savings Account proves it. As the company’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey, said, “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.”
