Apple Keeps Advancing in Financial Products

 

Customers who have an Apple Card in the US can now open a savings account and start earning interest. Due to industry-wide interest rate fluctuations, Apple was unable to disclose the interest rate that would be paid out on these accounts when it first unveiled the new financial product in October.

In contrast to other savings accounts that are now on the market, the corporation has chosen to give an APY (Annual Percentage Yield) of 4.15% as of right now. Other savings accounts, for example, have an APY ranging from 3.5% to 4.75%. Since interest rates might fluctuate at any time, Apple makes no guarantees about fixed rates. For this financial service, Apple has partnered with Goldman Sachs, which also technically manages the savings accounts. Consequently, the balances are insured by the Federal Deposit Insurance Corporation (FDIC).

This high-yield savings account is only available to Apple Cardholders. Consumers who use their Apple Card to make any transactions get cash back. any purchases come with a 1% cash incentive by default, and 2% for any transactions made using Apple Pay. Some retailers give 3% back for purchases.

By default, customers get daily cash incentives in their Apple Cash account, a digital wallet that functions similarly to a checking account and is visible in the Wallet app. You can use Apple Cash to settle your credit card debt, make purchases using Apple Pay, or send money to friends and family. You can also move your Apple Cash balance to a standard bank account.

Starting today, Apple Card customers can choose to deposit their daily rewards into their savings accounts. It’s an easy way to save money without much effort.

The savings account is displayed by the Wallet app, enabling users to view their recent transactions, current balance, and interest rate. This screen also allows users to manually add or withdraw funds. Either a standard bank account or Apple Cash can receive the remaining amount.

In a statement, Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said, “Savings gives our users a simple option to save money every day while allowing them to receive even more value out of their favorite Apple Card benefit – Daily Cash. Savings into Apple Card in Wallet allows users to spend, send, and save Daily Cash directly and easily, which is part of our mission to create tools that support people in leading healthier financial lives.

Apple’s savings account has no fees attached to it. There is a $250,000 maximum balance limit, though.