Apple Card Savings Account to Receive First-Ever Interest Rate Decrease

[MacRumors]

Nearly one year after it launched in the U.S., the Apple Card's high-yield savings account will be receiving its first-ever interest rate decrease.

Starting on April 3, the Apple Card savings account's annual percentage yield (APY) will be lowered to 4.4%, according to data on Apple's backend discovered by MacRumors contributor Aaron Perris. The account currently has a 4.5% APY.

4.4% will still be a competitive rate compared to many other popular high-yield savings accounts, which typically offer rates between 4.25% and 5.25%.

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%. The drop to 4.4% will be the first time the rate has gone down.

Apple launched its savings account in April 2023, in partnership with Goldman Sachs. The account can be opened and managed in the Wallet app on the iPhone, and it has no fees, no minimum deposits, and no minimum balance requirements. You must have an Apple Card, be a U.S. resident, and be at least 18 years old to open an account.

The account allows Apple Card holders to earn interest on their Daily Cash cashback balance, and on funds deposited via a linked bank account or an Apple Cash balance. The maximum balance allowed is now $1,000,000, up from a previous limit of $250,000.

To open a savings account in the Wallet app, tap on your Apple Card, tap on the circle with three dots at the top of the screen, tap Daily Cash, and select Set Up Savings.

Goldman Sachs reportedly plans to end its consumer lending partnership with Apple, but it is unclear how this might impact Apple Card holders.

Article Link: Apple Card Savings Account to Receive First-Ever Interest Rate Decrease

 

[izyreal]

I've been on the edge, so this will probably be enough for me to switch to a different provider with a higher interest rate.

 

[zach-coleman]

Right after you wrote a comparison guide, too. Couldn’t last forever, I guess.

 

[magicvash]

CIT and UFB both offer above 5% right now.

 

[WilliApple]

Haha April fools…
Wait what? MacRumors is actually mature?

Dang, but 4.4 is still competitive!

 

[guitarman777]

I’m still debating whether it’s worth opening an account now since Goldman-Sachs is wanting to jump ship from working with Apple.

 

[Antes]

Easy come easy go. Glad I didn’t park a ton of money into it

 

[tgwaste]

1 million limit increase is nice but it isn't insured, only 250K

 

[tgwaste]

Easy come easy go. Glad I didn’t park a ton of money into it

It's still higher than its opener and will go back up in Nov, dont worry.

 

[StuBeck]

Previous article about the savings rate didn't age well.

 

[sw1tcher]

Starting on April 3, the Apple Card savings account's annual percentage yield (APY) will be lowered to 4.4%, according to data on Apple's backend discovered by MacRumors contributor Aaron Perris. The account currently has a 4.5% APY.

They're going to lower the rate 2 days after just raising it?

Apple Card Savings Account's Interest Rate Lowered to 4.4% Today

Following the Apple Card savings account's rate cut to a 4.4% APY, we have updated our high-yield savings accounts (HYSAs) comparison chart for...

www.macrumors.com

Wait. Now I'm confused. Looks like Apple Savings rate was increased to 4.5% from 4.35% back in January, not today,

Apple Savings Account Interest Rate Increases to 4.50% APY

Apple is sending out push notifications to Apple Savings account holders letting them know about yet another rate increase. The Apple Card Savings...

www.macrumors.com

so the article from earlier today is nothing more than a comparison of Apple Savings' high-yield rate vs others as for April 2024.

Makes sense for them to start lowerig rates as the Fed is expected to start cutting rates soon. Discover Bank lowered their rate some time back in March 2024, and banks have already started cutting CD rates since February.

 

[F23]

April Fools! haha Tim you're so funny

 

[newyorksole]

Right after you wrote a comparison guide, too. Couldn’t last forever, I guess.

isn’t that crazy lol what are the odds. I knew it was bound to happen eventually. ah well.

 

[jayducharme]

Of course they're going to do that. They heard I was going to deposit more money in my account.

 

[munpip214]

I know it's not directly linked, but treasury yields went up today, not down. And feds announced no new rate cuts yet, so not sure where this is coming from. Unless they increased to entice new customers, now dropping to save money

 

[JordanCautious]

And it’s going to keep dropping too once the FED lowers rates 😢

 

[HouseLannister]

Hope my Wealthfront keeps their 5%

 

[dannyyankou]

Vanguard is a better option anyway.

 

[supergt]

And it’s going to keep dropping too once the FED lowers rates 😢

This is true for all high yield savings account. Though the continued high inflation will likely keep it limited to 2/3 cuts this year.

 

[Macaholic868]

Apple’s rate wasn’t high enough to move the needle for me in the first place so this drop, for no apparent reason, simply reenforces my decision to pass. There are better rates available out there. I can’t think of a reason why you’d pick Apple’s offering instead of some other alternative. One quick swipe and a tap and my Daily Cash transfers to a high yield checking account with a rate that blows Apple’s rate out of the water.

 

[t76turbo]

Apple’s rate wasn’t high enough to move the needle for me in the first place so this drop, for no apparent reason, simply reenforces my decision to pass. There are better rates available out there. I can’t think of a reason why you’d pick Apple’s offering instead of some other alternative. One quick swipe and a tap and my Daily Cash transfers to a high yield checking account with a rate that blows Apple’s rate out of the water.

‘Blows apples rate out of the water’????

would love to hear more.

 

[Braz0s]

Apple’s rate wasn’t high enough to move the needle for me in the first place so this drop, for no apparent reason, simply reenforces my decision to pass. There are better rates available out there. I can’t think of a reason why you’d pick Apple’s offering instead of some other alternative. One quick swipe and a tap and my Daily Cash transfers to a high yield checking account with a rate that blows Apple’s rate out of the water.

Details please.

 

[svish]

Expecting further cuts down the year. Not a huge reduction probably.

 

[Robert.Walter]

I know it's not directly linked, but treasury yields went up today, not down. And feds announced no new rate cuts yet, so not sure where this is coming from. Unless they increased to entice new customers, now dropping to save money

This IS the reason.

They were laggards in raising APY. Capital was fleeing and can’t have that. Especially if you’re trying to sell the business.

So they bumped, but it still wasn’t competitive so it bumped again.

Looks like the 2nd bump slowed flight.

Or GS maybe has an acquirer lined up so they are taking the opportunity to pad profits before the divestiture.

 

[BellSystem]

It will be 0.02% soon enough.