Apple Card users have a new option for a high-yield savings account, one that pays a 4.15% annual percentage yield. On Monday, Apple announced that the new federally insured account — serviced by Goldman Sachs Bank — is available to customers.
The account has no monthly fee or minimum balance requirement, and, at 4.15%, the APY is notable. That’s much more than the average savings rate for savings accounts, which was 0.37% as of March 2023, according to the Federal Deposit Insurance Corp.
There is a catch, though: The account is available only to people who have an Apple Card. This credit card offers a reward called Daily Cash, in which you can get up to 3% cash back on purchases. Daily Cash funds can now be automatically deposited into the new high-yield savings account. (You can also opt for a different destination for Daily Cash, such as your Apple Cash account, instead.)
In addition to depositing money earned through Daily Cash, you can deposit funds into the savings account via ACH transfer from a linked external account.
How Apple Card holders can set up the high-yield savings account
To open the account, you will need to go to your Apple Card in your Apple Wallet app and set up Savings. You’ll need to provide your Social Security number or individual taxpayer identification number to get an account, according to Goldman Sachs. You’ll also need a U.S.-based address (including U.S. territories and U.S. jurisdictions).
Funds in this account are federally insured up to the FDIC’s insurance limits. FDIC insurance generally covers bank account balances up to $250,000, per depositor, per insured bank, per ownership category. (Examples of ownership categories are “single accounts” and “joint accounts.”)
How to access the account
You can access your account, including balance and interest earned information, in the Apple Wallet app. The Apple device must have iOS 16.4 or later.
For transfers, as noted earlier, you can move funds to and from a linked external account. You can also transfer to and from your Apple Cash account.
How to find high-yield alternatives
If you don’t have an Apple Card or don’t want to open one, you can look for other high-yield savings accounts. Many tend to be online only. This means institutions that offer them typically don’t have the costs of paying for bank branches and in-person tellers, so they can pass on the savings in the form of high APYs and no monthly service fees.
Today, some of the best federally insured savings accounts have rates around 4% APY, often with no monthly fees or minimum requirements. Whether you’re an Apple customer and choose to open its new savings account or you choose a high-yield alternative, putting your money in a high-interest account is a smart way to help your savings grow.
Source: nerdwallet.com