Apple Card Savings Account Receives Yet Another Interest Rate Cut

[MacRumors]

The Apple Card's high-yield savings account received an interest rate cut overnight, the fourth time it has done so this year.

The ‌Apple Card‌ savings account's annual percentage yield (APY) dropped from 4.1% to 3.9%. Push notifications regarding the cut were sent to ‌Apple Card‌ users on Tuesday evening. Savings account interest rates fluctuate with changes made by the Federal Reserve, and when rates are lowered, banks cut their APYs.

When the ‌Apple Card‌'s savings account first became available, it offered an APY of 4.15%. The rate then increased three times, first to 4.25%, then to 4.35%, and finally to 4.5%, before being lowered to 4.4% in April 2024. This was followed by two more cuts, one in September to 4.25%, and another in early October to 4.10%.

Apple introduced its savings account in April 2023, partnering with Goldman Sachs. Designed for ‌Apple Card‌ holders, the account is exclusively available to U.S. residents aged 18 and above. It can be managed through the iPhone's Wallet app, offering a user-friendly experience with no fees, minimum deposits, or balance requirements.

The account allows users to earn interest on their Daily Cash cashback balance, as well as on funds transferred from linked bank accounts or Apple Cash balances. Initially capped at $250,000, the maximum balance has since been increased to $1,000,000, providing more flexibility for high-value savers.

Opening an account is straightforward. Users simply need to access their ‌Apple Card‌ in the Wallet app, tap the three-dot menu at the top of the screen, select Daily Cash, and then choose the option to set up savings. This process integrates seamlessly with the existing ‌Apple Card‌ interface.

• Apple Card Savings Account's Lowered Rate Compared to Other Options

It's worth noting that Goldman Sachs has reportedly indicated plans to end its consumer lending partnership with Apple. However, the potential impact of this change on ‌Apple Card‌ holders remains uncertain at this time. JPMorgan, owner of Chase Bank, reportedly could take over as Apple's financial partner.

Article Link: Apple Card Savings Account Receives Yet Another Interest Rate Cut

 

[fhall1]

Sucks…but my AmEx HY account made the same cut this week.

 

[Cndnmax]

This is how interest rates work, they don’t always go up. Just wait, if Chase takes over it will be 0.01% but at least it won’t ever change haha

 

[McWetty]

Eh. Not surprised. Interest rates go up and down. I don’t use Apple Savings because it’s just not competitive. My CU is still giving me 4.5% (for now) and historically they’ve been half a point higher than everyone else, so they’ll keep holding my savings.

 

[macpro2000]

This says good things about the way the economy is heading.

 

[Corefile]

This rate is garbage compared to others. Not sure why people would gives AAPL their monies.

 

[Belisama]

This rate is garbage compared to others. Not sure why people would gives AAPL their monies.

They don't give AAPL their monies. They give Goldman Sachs their monies.
Just my 2 cents x 3.9 / 100.

 

[thettareddast]

Short term UST yields, referenced as the Benchmark rates, have been dropping

Resource Center | U.S. Department of the Treasury

home.treasury.gov

 

[WarmWinterHat]

This rate is garbage compared to others. Not sure why people would gives AAPL their monies.

It's a pretty standard current rate for an FDIC-insured savings account.

 

[coffeemilktea]

Initially capped at $250,000, the maximum balance has since been increased to $1,000,000, providing more flexibility for high-value savers.

I'd imagine anyone who's wealthy enough to drop 1 million dollars (Dr. Evil?) in an Apple Card savings account would be canny enough to put that money into something more productive, like US Treasury bonds... or AAPL shares. 😬

 

[Corefile]

They don't give AAPL their monies. They give Goldman Sachs their monies.
Just my 2 cents x 3.9 / 100.

They're called Goldman Sucks in the investment banking industry.

 

[WarmWinterHat]

I'd imagine anyone who's wealthy enough to drop 1 million dollars (Dr. Evil?) in an Apple Card savings account would be canny enough to put that money into something more productive, like US Treasury bonds... or AAPL shares. 😬

Indeed. The wife and I keep a year salary in FDIC-insured savings, but everything beyond that is in investments.

 

[Biro]

This rate is garbage compared to others. Not sure why people would gives AAPL their monies.

A lot of Apple Card users don’t transfer money into the card’s savings account. They just store the credits they earn on making purchases with the card in the savings account.

 

[dmunz]

The Apple Card's high-yield savings account received an interest rate cut overnight, the fourth time it has done so this year.

I'm not smart enough to figure out the math but isn't there a slight compounding advantage with the Daily Cash payments? Sure it depends on timing, how much you spend and what cash back you get for each purchase (2% or 3%) but it is something.

FWIW
DLM

 

[webkit]

They're called Goldman Sucks in the investment banking industry.

While there are better HYSA rates out there, Goldman Sachs' Apple Card (and Marcus) HYSA rate is in line with others form companies like American Express, Capital One, and Discover.

 

[WarmWinterHat]

While there are better HYSA rates out there, Goldman Sachs' Apple Card (and Marcus) HYSA rate is in line with others form companies like American Express, Capital One, and Discover.

A 0.1% change is about $9 monthly interest per $10k principal, so rarely worth chasing interest rates.

 

[Rychiar]

This rate is garbage compared to others. Not sure why people would gives AAPL their monies.

its better than any other savings account I've ever had and it was easy cus it's apple

 

[orangeadrenaline]

These changes aren’t newsworthy.

 

[thettareddast]

They're called Goldman Sucks in the investment banking industry.

Who calls them that, and on what basis, or is this some populist thing you like to robotically recite as if it were an incantation from the occupy wallst era?

 

[Corefile]

its better than any other savings account I've ever had and it was easy cus it's apple

You can't have had very good HYSA then. Time to choose better.

 

[thettareddast]

While there are better HYSA rates out there, Goldman Sachs' Apple Card (and Marcus) HYSA rate is in line with others form companies like American Express, Capital One, and Discover.

Yup. It's about 60 basis points off the 1mo UST Bills. Which is the spread you'd expect. Banks are not in the business of giving free money away. But they do need to be attractive to compete for business - and it is competitive given you just listed 3 competitors on top of literally 100s of others.

 

[Corefile]

Who calls them that, and on what basis, or is this some populist thing you like to robotically recite as if it were an incantation from the occupy wallst era?

Folk who work on Wall St call them that. Citation: Me.

 

[thettareddast]

Folk who work on Wall St call them that. Citation: Me.

what is the basis for their being called that and on which street do you work ?

 

[Corefile]

what is the basis for their being called that and on which street do you work ?

Because they're ****. Where I work isn't your concern.

 

[Rychiar]

You can't have had very good HYSA then. Time to choose better.

I didn't. didn't even know about them before this. just had my standard savings account at the bank with like 2%. had to move money into CDs to get these kinda rates