In its bid to extend further into your wallet, Apple announced that Apple Card users can now set up a savings account with an impressive annual percentage yield (APY) of 4.40%. In a press release, the technology behemoth said the account doesn’t charge fees and there are no minimum balance or minimum deposit requirements in order to earn the high yield.
The account is certainly attractive and may make sense for current Apple Card holders. However, we don’t recommend applying for the credit card just to chase its savings account’s high yield.
Account details and APYs are accurate as of June 6, 2024.
Apple High-Yield Savings Account: The details
The new account, offered by Goldman Sachs Bank, is the type of savings product that tickles our fancy.
First and foremost, the interest rate is competitive with the best savings accounts on the market.
The 4.40% yield is nearly 10 times the national average savings rate of0.46% (as of August 19, 2024, according to the FDIC). If you have a savings account with a traditional brick-and-mortar bank, you may be astounded that such yields are even offered.
Interest also compounds daily, which is an added bonus.
If you put $10,000 in Apple’s savings account for a year, you’d earn about $460, compared to less than $50 if your account paid the national average.
We also really appreciate the lack of fees and hoops needed to earn that rate. Many accounts offer high yields, but require you to set up direct deposit or maintain a certain average balance throughout the month.
How do I get an Apple savings account?
The account is designed to mesh seamlessly with the Apple Card*The information for the Apple Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer., which is also backed by Goldman Sachs and delivers 3% back on Apple and participating partners, 2% when using Apple Pay and 1% on all other purchases.
The rewards, called Daily Cash by Apple, will automatically be deposited into your savings account, though you can also fund the account with money from other linked bank accounts.
However, there is one big caveat to keep in mind: in order to be eligible for the account you must be, as the deposit agreement states, “[A]n Owner or Co-Owner of an Apple Card, as defined in the Apple Card Customer Agreement.” To summarize: If you don’t have an Apple Card, you won’t be able to access this savings account.
How apple card savings compares to other savings accounts
Benefits
- High yield. The national average interest rate on savings accounts hasn’t surpassed 0.50% in the last five years. The Apple Savings account yield of 4.40% is one of the top rates on the market, even with the 4.25% APY from the Capital One 360 Performance Savings.
- No minimum balance. You don’t need to provide a minimum deposit, unlike with some other banks, including the Wells Fargo Way2Save® Savings account, which necessitates a $25 minimum opening deposit. And, you also don’t need to maintain a minimum balance to avoid fees, unlike the TD Simple Savings account, which charges a $5 monthly maintenance fee unless you maintain a $300 minimum daily balance (or meet other requirements).
Disadvantages
- Credit card required. You can’t sign up for just the Apple savings account; you must be approved for the Apple credit card and not everyone will qualify.
- No other linked cards. The savings account itself doesn’t come with a debit card (which is, admittedly, a rare thing for a traditional savings account) nor an ATM card (which is more common).
Should you get Apple’s savings account?
This is a unique situation because you typically don’t have to apply and be approved for a credit card to access a high-yield savings account.
We believe that you should only apply for a credit card if it makes sense for you on its own, and not as a means to some other end. Obviously, Apple is hoping that this savings account will entice some consumers to apply for its credit card.
While the Apple Card is a good card for Apple product users, it fares poorly compared to the best cash-back cards; and other banks, such as Bask Bank or Varo Bank, offer high-yield savings accounts with higher yields than Apple’s, without requiring you to own a specific credit card.
Takeaway
Apple Card holders should be pleased with the news and take advantage of their Daily Cash now earning a solid yield. If you are such a person, and Apple’s savings account offers a higher yield than the one provided by your bank, then consider shifting even more savings into the account.
However, if you are not a cardholder, and don’t think the credit card makes sense for you on its own, then research other online savings accounts that offer competitive rates without such weighty strings attached.
*The information for the Apple Card has been collected independently by Blueprint.The card details on this page have not been reviewed or provided by the card issuer.
