Tim Hardwick
The Apple Card high-yield savings account got an overnight interest rate cut, marking the fourth time this year.
The annual percentage yield (APY) on the Apple Card savings account dropped to 3.9% from 4.1%. Push notifications about the cut were sent to Apple Card users on Tuesday evening. Interest rates on savings accounts fluctuate based on changes made by the Federal Reserve, and when rates go down, banks cut their APYs.
When the Apple Card savings account first became available, it offered an APY of 4.15%. The rate then increased three times, first to 4.25%, then to 4.35%, and finally to 4.5%, before being cut to 4.4% in April 2024. That was followed by two more cuts, one in September to 4.25% and another in early October to 4.10%.
Apple introduced its savings account in April 2023 in partnership with Goldman Sachs. The account, designed for Apple Card holders, is available exclusively to U.S. residents ages 18 and up. It can be managed through the Wallet app on the iPhone, offering a user-friendly interface with no fees, minimum deposits, or balance requirements.
The account allows users to earn interest on their Daily Cash balance, as well as on funds transferred from linked bank accounts or Apple Cash balances. Initially, the maximum balance was capped at $250,000, but has since been increased to $1,000,000, providing more flexibility for savers with larger amounts.
Opening an account is simple. Users simply need to access their Apple Card in the Wallet app, tap the three-dot menu at the top of the screen, select Daily Cash, and then select the option to set up savings. This process integrates seamlessly with the existing Apple Card interface.
- Apple Card savings account rates are lower than other options
It's worth noting that Goldman Sachs has reportedly announced plans to end its consumer lending partnership with Apple. However, the potential impact of this change on Apple Card holders remains uncertain at this time. JPMorgan, the owner of Chase Bank, is reportedly in the running to become an Apple financial partner.
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