Apple Card to Offer High-Yield Savings Account

One of the largest companies in the world is set to introduce a new financial tool to its millions of customers. This week, Apple announced that it would soon be launching a high-yield savings accounts for Apple Card customers. Once it debuts, cardholders will be able to automatically deposit the Daily Cash they earn from their Apple Card purchases into their savings account. Additionally, customers will be able to deposit funds via a linked banking account or their Apple Cash balance. Users can manage their accounts and view their balances via their dashboard in Wallet.

Like the credit card itself, this account will be issued by Goldman Sachs. Apple says that the new saving account will carry no fees, have no minimum deposits, and hold no minimum balance requirements. A specific interest rate for the “high-yield savings” account was not mentioned in Apple’s press release. However, Marcus — which is also by Goldman Sachs — currently offers 2.15% APY.

In a statement about the upcoming offering, Apple Pay and Apple Wallet VP Jennifer Bailey said, “Savings enables Apple Card users to grow their Daily Cash rewards over time, while also saving for the future. Savings delivers even more value to users’ favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives.”

Meanwhile, Apple’s blog post notes, “The new Savings account from Goldman Sachs expands upon the financial health benefits and valuable Daily Cash that Apple Card already offers. Built into Wallet on iPhone, Apple Card has transformed the credit card experience by simplifying the application process, eliminating all fees, encouraging users to pay less interest, offering the privacy and security users expect from Apple, and offering Daily Cash on every purchase.”

Launched in 2019, the Apple Card has continually been updated while keeping the core product largely the same. Currently, the card earns customers 2% Daily Cash on all purchases made using Apple Pay, 1% Daily Cash on all other purchases, and 3% Daily Cash on purchases from a number of brands, including Apple itself. Other 3% back brands include Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware. In addition to growing that list over time, Apple has also introduced interest-free financing on select Apple products for cardholders, offered the ability to add family members as authorized users, and brought other features to the card since its initial debut.

On the one hand, Apple launching its own Saving Account may seem like an out-of-leftfield decision. However, considering that the company already offers a credit card, peer to peer payment network, and plans on launching a “buy now, pay later” option in the near future, this extension makes a lot of sense. As for whether this new savings account will make sense for Apple Card customers in practice remains to be seen as the APY offered would need to be competitive. That said, the idea of diverting credit card rewards directly to savings is likely a smart move for most consumers. Hopefully we’ll learn a lot more about Apple’s savings account plans in the coming month.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

AllWork Raises $4.9 Million From FINTOP Capital 

A FinTech focused on freelancer payroll has closed a significant early-round investment. This week, AllWork announced that it had raised a $4.8 million round. The Series A was led by Nashville-based FINTOP Capital with no other participants. As a result of the transaction, FINTOP's Chris Haley and Rick Holton will join AllWork's board of directors. Previously, AllWork closed a $3.8 million seed round in 2019, bringing their to-date funding total to $8.7...

Top 10 Personal Finance Articles of the Month — November 2022 

It’s time again for one of my favorite features here on Dyer News: a look at the top 10 personal finance articles of the month. Up first, we'll look at money in modern times and how inflation is impacting investments. Then, we'll look at some financial considerations. And finally we'll talk about simple pleasures, donating points and miles, and more. As usual, this month’s list includes a couple of Dyer...

U.S. Economy Added 263,000 Jobs in November 2022

Over the past several months, the United States economy has repeatedly offered mixed signals. Although gross domestic product results would suggest we're headed for a recession, the Federal Reserve has been forced to hike interest rates in a bid to slow inflation. Now, the latest figures also show that the economy continues to create jobs at a decent clip. According to the latest Bureau of Labor Statistics report, the U.S....