Is there going to be a minimum balance to get the high yield interest? Other high yield savings accounts want like $25k.
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Apple Card Savings Account Likely Launching on April 17
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Not sure about the “shake fist” comment. Not my vernacular but I get your gist.
Conceptually similar, to credit, yes. But BNPL schemes as they currently exist target a different audience with an intent to reduce friction for purchases they otherwise would not be able to afford or inclined to make. These are typically people who do not have a credit card and most likely have poor credit and/or poor personal finance habits. I personally don’t think Apple should be in this unsavoury business.
All of that said, Apple’s integration across devices and now financial services could be a substantial benefit to their customers. Without a detailed exposition of loan terms and default penalities, it remains to be seen if they are trying to bring real benefits and protections, and savings to their customers, or just trying to grab some of the cash sloshing around the lucrative BNPL party.
My question is how does that impact your taxes because right now if you use your credit card savings rewards and don’t convert the cash you don’t have to pay taxes on it but if I send my bank account now it becomes profit now I have to pay 17.5 percent on it why in the world would I send it to it savings account if I have to pay 17 1/2% penalty I’m only making 3.75% at the most better to use your own cash. Fund your own savings account and just use it the rewards to Pay down your Apple Card.
Apple Card Savings will likely be available starting Monday, April 17, according to backend code on Apple's servers uncovered by @aaronp613. The code also suggests that an iPhone with iOS 16.3 or later will be required to use the feature.
Apple Card users will be able to open a high-yield savings account from Goldman Sachs in the Wallet app on their iPhone and start earning interest on their Daily Cash balance. Apple has yet to reveal what the account's interest rate will be, but Goldman Sachs' existing Marcus high-yield savings account currently has a 3.75% APY.
In addition to Daily Cash, users will be able to deposit their own funds into the savings account through a linked bank account, or from their Apple Cash balance. Users will be able to withdraw funds to a linked bank account at any time, with no fees.
To open a savings account in the Wallet app, users will tap on the Apple Card, tap on the circle with three dots at the top of the screen, tap Daily Cash, and select Set Up Savings. Once the account is set up, all Daily Cash received from that point on will be automatically deposited into it and start earning interest. If they prefer, users will still be able to have Daily Cash added to their Apple Cash balance instead at any time.
Apple Card provides 2% to 3% Daily Cash on purchases made with Apple Pay and 1% on purchases made with the physical card. Apple's credit card remains available in the U.S. only, meaning this savings account feature will only be available there.
Apple first announced the savings account in October and said it would be available in the coming months. It's likely that Apple Card Savings has faced delays, as the feature was initially listed in the iOS 16.1 Release Candidate notes, but it did not end up launching with that update and is still not available six months after being announced.
Apple has gradually expanded into financial services over the past few years. The launch of Apple Card Savings would follow last month's limited rollout of Apple Pay Later, a "buy now, pay later" service for financing purchases made with Apple Pay.
Article Link: Apple Card Savings Account Likely Launching on April 17
Credit card rewards are currently not taxable income in the US as far as I'm aware. Transferring them to a savings account doesn't change that. (Depending on the type of reward, of course. A bonus for opening an account may be taxable, but cash back on purchases is generally just considered a discount on the purchase.)
I will be curious to hear estimates of how much $$$$ goes into these accounts in the first month after it launches. I’m guessing it will be A LOT, in part due to convenience alone.
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Very excited for this. We’ll see if it arrives tomorrow.
Wallet features generally just appear out of nowhere. This was another example of that.