Update 1/25/24: Now 4.35%
Apple finally announced today the launch of a new high yield savings account in partnership with Goldman Sachs. Apple Card users can open a linked savings account where they can have their Apple Cash automatically deposited. They can also deposit funds directly into the high yield savings account from a linked bank account. There are no fees on the account.
The current APY rate on the Apple Card savings account is 4.15% on up to $250,000 in deposits. That’s reasonably competitive. For comparison sake, Goldman Sachs’ own Marcus Bank is offering 3.90% high yield savings account at the time of this writing, and Ally Bank high yield savings accounts offers 3.75% right now. There are top high yield savings accounts earning as much as 5.00%, though. My assumption is that Apple will maintain the high rate, and increase/decrease the APY rate as the market adjusts over time.
It appears that only Apple Card users can sign up for this savings account. We’ll add the account to our list of Best High Yield Savings Accounts.
Marcus currently offers an excellent 4.15% no-penalty CD with no upper limit. This is essentially the same as the original high yield savings account since the CD can be liquidated anytime with no penalty. And the rate is guaranteed for 14 months while the savings account rate can change any time.
I’m surprised DoC doesn’t mention this great rate and guaranteed no-penalty CD from Marcus. Few mainstream banks like Marcus offer a guaranteed rate in this range with this flexibility.
Rate is now 3.9%
Rate is now 4.1%.
Rate is now 4.35%
Updated
Now it’s 4.50%. Needs to be updated on the main page.
I locked and frozen my Experian, TransUnion and Equifax, is that the reason why they denied it for me 2nd time?
Will Apple be raising the interest rate because the fed raised rates? Seems like other banks increased their interest rate to match what the fed did, but Apple has stayed the same?
You mught be waiting a very long time…
Apple may be convenient but is no longer paying the best rate. DoC has a full list of banks/credit unions that pay higher interest rates if you want to fibd a better return
It’s a good sign and a positive step in the right direction for depositors and puts the squeeze on the financial institutions (local, regional). Pits the small-mid size and even some larger banks to raise rates more aggressively to compete. Good for us, bad for them.
Apple’s reach is nothing to brush aside and are capitalizing on their brand loyalty and clout. They know the numbers behind Apple Pay (banks, transactions, etc) and clearly big enough to punch ahead versus waiting for others to fall. This only helps to strengthen their consumer ecosystem on the finance side as it lays a path to open their products and services offerings.
This will be a good one to watch in the coming weeks.
Since Marcus offers 3.90% to their own customers, it suggests Apple is likely using this as a promo offer to drive activations — funding the extra couple of basis points with their hundreds of billions of cash on hand (“marketing expense”).
Then, for $AAPL earnings they will be able to say this product attracted X million new activations, and they make all their “expenses” back the next trading day with billions added to marketcap the next trading day. They may keep the points to continue getting capital inflows, and Marcus will get to make $$ by parking funds at FED.
Two big giants are rigging the market and here I’m still thinking how to report the $100 from Axos to IRS
They should have sent a 1099-int. Not happy about that one either.
I think this is gonna to bring some heat on big banks/CU which are still offering excellent 0.01% interest rates. Even SoFI is doing 1.2% on checking account and getting away and I dont see cant Apple wallet be main account and still take 4.15%.
The big 3-4 banks will not even blink. They pay .01% because they don’t really need your deposits. Regional banks and credit unions are a different story. Look at the Apple credit card…didn’t have any impact on the big guys.
Median bank account balance is about $5k, which means half of the nation will gain less than $200 of additional interest per year after tax by making the move.
Folks with much larger bank account balances almost certainly have easy access to t-bills or MMFs that pay a higher rate without the 250k limit.
All in all, doubtful that this can make a big dent anywhere.
Now they just need to do this for the GM Card. I haven’t found a use for those points other than Sirius XM and for the card other than gasoline purchases up to $1500 per year.