Apple on Monday announced that it is now offering its Apple Card holders a 4.15% high-yield savings account with Goldman Sachs. They may park both the 3% cash back they receive from using the Apple Card on select purchases plus other savings they may wish to deposit.
The new product will provide a more holistic, financial-service experience under the Apple umbrella for its customers, who must use Apple hardware to benefit, noted Bankrate senior industry analyst Ted Rossman. For instance, you can only get an Apple Card if you use an Apple phone.
But the good news for Apple customers — or anyone else seeking more money on their savings — is that there are a lot of high-yield savings options on offer now that don’t require you to join the Apple club to benefit.
Savings rates at the biggest banks — which are swimming in deposits — are still well below 1%. But there are plenty of deals to be had at FDIC-insured online banks.
Rossman notes the 4.15% rate in Apple’s offer is the 11th highest on Bankrate’s list. No. 1 comes in at 5.02% at UFB Direct. And three other banks (No. 8-10) — LendingClub Bank, Rising Bank and Citizens Access, currently offer 4.25%.
For any money you can afford to lock up for three months to a year you will get even higher rates by purchasing an FDIC-insured certificate of deposit. For instance, Rossman noted, the top-yielding 1-year CD now pays 5.2% — and that rate is locked in for 12 months. A high-yield savings account rate, by contrast — including Apple’s new offering — can move up or down without notice at any time.
“Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in a statement. “Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place.”
The Apple savings account through Goldman is FDIC insured.
Bankrate gives the Apple Card high marks as a no-fee rewards credit card, and the convenience of having a high-yield savings account for a cardholder’s cash rewards may be appealing.
The-CNN-Wire™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
