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.