Apple Card users can earn interest on their rewards, as the company automatically deposits the users’ Daily Cash Reward into a High-Yield Savings account from Goldman Sachs so that users can grow their savings over time unless users opt-out to change the destination for their Daily Cash. This savings account doesn’t include a fee or require a minimum deposit, and it has no minimum balance requirements. Users’ money is FDIC insured up to $250,000 per depositor, the maximum amount you can keep in your account.
This could be one of the best ways for users who want to save and earn interest on their savings accounts. Many Apple Card users have been waiting for this since the company first announced it in October. It promises to offer a 4.15% APY (Annual Percentage Yield), considered significant as it is more than 10x the national average since the current low-interest rate offered by banks, which is the average national APY on savings accounts, is 0.3%. If you have yet to hear of Daily Cash, it’s an Apple Card Reward Programme that offers 3% back on purchases that appear in the Apple Wallet app.
To view all users’ savings, they can check the Savings Dashboard in their wallet. This makes it easier for users to keep track of their account balance and interest earned over time. Apple Cash balances can be used to pay or send money to friends or family, and you can also transfer this balance to a regular bank or for foreign transactions without incurring any fees.
How to open an Apple High-Yield Savings Account:
To start with an Apple Cash Savings account, users must have a wallet on their iPhone and an Apple Card. This requires you to set up Apple Card Savings, currently available for U.S. residents 18 years of age or older. Here are the following instructions mentioned below:
- Open the Wallet app on their iPhone.
- Tap on the Apple Card and tap the More button (triple-dot menu) in the upper-right corner.
- Now, tap on Daily Cash, and then from the Daily Cash menu, choose Saving, which is found under Daily Cash Elections.
- After that, tap on Save and then continue where it asks you to enter your Social Security Number along with other essential details to verify, and then by tapping Agree to terms and conditions, continue with the setup.
- Enter how much money you want to deposit into a savings account.
- That’s it; Apple Card Saving could take 1-3 business days.
Once you finish setting up Apple Card Savings and have deposited the money, you can start earning interest instantly. You can also change the destination of your daily cash deposit anytime, but it’s a good idea if you leave it in the savings account to earn interest. Users also have the option to add money to their Apple Cash Savings account by depositing funds directly from their linked bank account. Apple isn’t a bank; it has partnered with Goldman Sachs to provide banking services.
Note: Apple doesn’t collect fees or require minimum deposits or balances. Users can only transfer up to $20,000 from their Apple Savings account within 7 days and cannot deposit cash or make wire transfers with this account.
This makes the Apple Cash Savings account one of the most appealing options for users looking for a high-yield savings account. It’s a great way to start saving money, primarily because it doesn’t involve fees, deposits, or balance requirements. If you share your Apple Card account with your loved ones, they can start saving. Despite the growth of Apple Card, Goldman Sachs has posted a $1.2 billion loss, partly attributed to its consumer offerings such as Apple.
Apple isn’t making any promises regarding future interest rates, which means they could go down or up at any time. Partnering with Goldman Sachs again to integrate banking features into the Apple Ecosystem, users need not worry as the Federal Deposit Insurance Corporation (FDIC) covers the balances.
If you are not an Apple Card user, then many great high-yield savings options like CIT Bank, Ally Bank, and Discover Bank offer approximately 4.50% more APY with no associated fees and minimum balance requirements. Do compare the options before opening a savings account with any bank.