On Monday, Apple, in partnership with Goldman Sachs, announced a new high-yield savings account for Apple Card users. You may be wondering what it all means.
Simply put, you can now put your Daily Cash rewards (Apple’s name for the small cash back amounts you get for using Apple Card) into a savings account with an annual percentage yield (APY) of 4.15%.
That’s a significantly higher rate than you’ll get for keeping money in a regular savings account at a traditional bank. As a point of comparison, Bank of America offers you a measly 0.01% APY. Be careful, though: Apple said your APY can change at any time.
More importantly, Apple will also let you add money to this high-yield savings account directly from your existing bank account, meaning you can deposit thousands of dollars there (up to $250,000) and earn serious returns. (If you decide to deposit a large chunk of change into an Apple High-Yield Savings account, I’d like to hear from you; email me at [email protected].)
The move is the latest in Apple’s push into financial services. Last month, Apple added a “buy now, pay later” service to Apple Card, allowing you to pay for your purchases for six weeks interest-free. That feature put the tech giant in competition with companies like Klarna and Affirm.
“Our goal is to create tools that help users lead healthier financial lives, and adding savings to Apple Card in Wallet allows users to spend, send and save Daily Cash directly and seamlessly, all from one place,” Jennifer Bailey, vice president of Apple Pay and Apple Wallet, said in a statement.
The feature is currently only available in the US. It is important to note that Apple’s APY not the highest available. But if you already have Daily Cash by using your Apple Card, saving it in a savings account that can be accessed directly from the Wallet app on your iPhone is a no-brainer.
