Apple Card Savings Account's Interest Rate Lowered Again

[MacRumors]

The interest rate on Apple Card's savings account was today lowered from 3.75% to 3.65%—an all-time low.

The drop follows the last interest rate cut in March, where it reduced from 3.9% to 3.75%. If you deposited $1,000 into the account, and maintained that balance for one year, you would earn $36.50 in interest based on the current annual percentage yield (APY).

Apple introduced its high-yield savings account in April 2023 in partnership with Goldman Sachs. Available in the Wallet app on the iPhone, the account features no fees, no minimum deposit, and no minimum balance requirements. To be eligible, users must have an Apple Card, reside in the U.S., and be at least 18 years old.

The account enables Apple Card users to earn interest on both their Daily Cash rewards and any additional funds deposited via a linked bank account or Apple Cash. The balance cap was raised to $1 million, up from the previous limit of $250,000.

At launch, the APY was set at 4.15%, but it has varied in response to U.S. Federal Reserve rate changes. It reached a peak of 4.5% in early 2024, while the current rate sits at a record low of 3.65%.

In an email to Apple Card users, Apple explains the reason for the adjustment and highlights that the rate remains well above that of standard savings accounts:

Why did the APY on Savings change?

The APY on Savings is variable, and we may change rates at any time. Rates are influenced by many factors, including the Federal Reserve Funds Rate. When this rate is lowered, it affects all US financial institutions and we evaluate potential adjustments to our rates.

Our current APY remains 8X the national average and we will continue to strive to keep it competitive.

To get started with Apple's savings account, open the Wallet app, select your Apple Card, tap the three-dot icon, go to Daily Cash, and tap "Set Up" next to Savings.

While Goldman Sachs is reportedly looking to exit its partnership with Apple early, it remains unclear whether this will impact current Apple Card users. Recent reports indicate that Barclays, Synchrony, and JPMorgan Chase are among the contenders to become the new financial partner.

Article Link: Apple Card Savings Account's Interest Rate Lowered Again

 

[DarrenC]

What alternatives are you guys using? Looking to move my money out. Way too many other higher interest rate alternatives. Would love to keep it in a simple savings account for simplicity and fluidity.

 

[senttoschool]

Moved my money to Robinhood. Getting 4.5%.

 

[jayducharme]

This is getting ridiculous. Apple Savings was once an attractive alternative. Now it's basically less attractive than many other options.

 

[Rafagon]

Apple should be embarrassed that a much smaller company like Varo pays out 5% APR on their savings account. And yes, Varo is FDIC-insured.

 

[WarmWinterHat]

What alternatives are you guys using? Looking to move my money out. Way too many other higher interest rate alternatives. Would love to keep it in a simple savings account for simplicity and fluidity.

Check locally; credit union close to me is offering 4.75%.

 

[Corefile]

Big profits for AAPL for those who use this. Well done.

 

[WarmWinterHat]

Big profits for AAPL for those who use this. Well done.

Maybe..? Goldman Sachs handles and holds the money, not Apple.

 

[gsmornot]

I'm staying. The offered rate is 3.74% higher than the regular savings at BoA. The point of the account, for me, is quick cash on hand that earns more than standard savings. My money making accounts are in riskier investments but in return they pay at a higher rate when things are going well. This account is for parking money in a place thats easy to get to. I like the wallet integration and based on what I see in the market, it's not more than 1% behind the highest payout. I know thats money missed but again, for me, this is a cash holding spot earning more than the standard .01% a basic savings offers.

 

[thettareddast]

Moved my money to Robinhood. Getting 4.5%.

This is getting ridiculous. Apple Savings was once an attractive alternative. Now it's basically less attractive than many other options.

Apple should be embarrassed that a much smaller company like Varo pays out 5% APR on their savings account. And yes, Varo is FDIC-insured. DM me for a referral link if you're interested. No, I don't work for them.

Where do people get the idea that things come for free?

Banks earn 4.33% lending to others at the Fed Fund Rate, why should they pay you 4.5% or 4.75% or 5% to get deposits for the lending? They need a positive spread to bother offer the service at all.

The rates you are quoting are encumbered with clauses:
-Varo requires that you establish direct deposit with them. And the 5% is a tiered rate only valid on a small initial chunk of cash, and 2.5% for anything beyond.
-Robinhood offers 4%, and only for people *paying them* for a Gold subscription.

Both of them draw money to get you to spend on their other services.

Your comparison for Apple Savings rate is another financial product with no fees and no withdrawal or term restrictions.

 

[Blackstick]

What alternatives are you guys using? Looking to move my money out. Way too many other higher interest rate alternatives. Would love to keep it in a simple savings account for simplicity and fluidity.

Local credit union is still doing 4.75% CDs. For now. As far as savings, the highest I've seen is like 4.3%.

 

[senttoschool]

-Robinhood offers 4%, and only for people *paying them* for a Gold subscription.

Literally getting 4.5% now. Gold is $5/month. Easily covered by higher interest rates.

 

[Blackstick]

Literally getting 4.5% now. Gold is $5/month. Easily covered by higher interest rates.

Robinhood is the first and only bank where it took them 3 weeks to transfer my money to my 5/3rd account. What should take 3-5 days tops took them 3 weeks. Wasn't about funds settling, they blamed it on technical issues and their support is email only. It smelled like manure to me. They should match every other financial institution in reliability and they just... didn't.

They basically started quietly in 2014 and suddenly exploded in popularity during the pandemic mostly on the doge crypto scams and other schemes. I just don't trust their management. If we one day wake up to a WSJ article of "all of Robinhood's senior executives have been indicted in California on fraud charges", it wouldn't surprise me in the least.

Reminds me of when my buddy leased a Tesla and returned the car at maturity, but Tesla neglected to tell US Bank the car had been returned the prior month, so they happily billed my friend for months until a legal letter got them to stop.

 

[WarmWinterHat]

Robinhood is the first and only bank where it took them 3 weeks to transfer my money to my 5/3rd account. What should take 3-5 days tops took them 3 weeks. Wasn't about funds settling, they blamed it on technical issues and their support is email only. It smelled like manure to me.

They basically started quietly in 2014 and suddenly exploded in popularity during the pandemic mostly on the doge crypto scams and other schemes. I just don't trust their management. If we one day wake up to a WSJ article of "all of Robinhood's senior executives have been indicted in NY superior court on fraud charges", it wouldn't surprise me in the least.

They aren't a bank, Robinhood is an online brokerage firm.

They are pretty scammy and I don't trust them either.

 

[thettareddast]

Literally getting 4.5% now. Gold is $5/month. Easily covered by higher interest rates.

Expired rate or a temporary promo 'boost' on top of the base rate.

Live website:
-4% cash sweep in brokerage account https://robinhood.com/us/en/support/articles/gold-overview/
-4% in 'banking' service https://robinhood.com/us/en/banking/

 

[rovostrov]

Forbright Bank is at 4.25% APY. Transfers only take a day or two and they have
no sneaky fees. https://www.forbrightbank.com/personal-banking/growth-savings/

 

[HouseLannister]

What alternatives are you guys using? Looking to move my money out. Way too many other higher interest rate alternatives. Would love to keep it in a simple savings account for simplicity and fluidity.

Wealthfront. I started with 5%. It lowered to 4%, but has been holding steady there.
CDs are good too, but you need to go with shorter ones for the best rates (for now).

 

[neuropsychguy]

I use SoFi with a 3.8% rate. We'll see if that holds. I don't keep a lot in savings though. Most is in longer-term investments with 'savings' money held in various high dividend ETFs.

 

[Xavier]

It's not really worth it to keep your money in Apples Savings anymore. It was really convenient and nice when it was above 4%, but local credit unions are usually better than that. Just don't do Chase lol

 

[IIGS User]

This is getting ridiculous. Apple Savings was once an attractive alternative. Now it's basically less attractive than many other options.

One could apply this notion to just about everything Apple these days.

 

[CheesePuff]

Apple should be embarrassed that a much smaller company like Varo pays out 5% APR on their savings account. And yes, Varo is FDIC-insured. DM me for a referral link if you're interested. No, I don't work for them.

it's only 5% for the first $5K then 2.5% on the rest

 

[Scotty2Hotty]

So as I calculate it, $.01 on your money every day.

 

[sloheim]

Bread Financial is 4.3% on the FULL amount, $100 minimum, no direct deposit needed, FDIC-insured. I've been quite happy with them.

 

[switz]

My Apple Card daily purchases get "some" cash back every day and it goes directly into the Apple Savings account automatically. The cash flow does not amount to much, less than a thousand a year and it is not worth the effort to chase ten dollars by moving from one place to another. Postage stamps are nearly a dollar and an envelope is not free and opening an account somewhere else usually has a minimum balance requirement or a service fee is imposed.

The interest might buy a Starbucks coffee one time

 

[miguelcoma]

Literally getting 4.5% now. Gold is $5/month. Easily covered by higher interest rates.

If anyone wants to know the math, since Apple is 3.65% and Robin Hood is 4.5% with a $5-month subscription...
When compared to Apple, the Robin Hood fee pays for itself if you have at least $7,060.00 in their high-yield savings account.

($5/month * 12 months) / (4.5% - 3.65%) = $7,058.82