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

[MacRumors]

In the U.S., the Apple Card offers a high-yield savings account option, allowing you to earn far more interest on your money compared to the average bank's basic savings account. Following a rate cut this week, the account now has an APY of 3.9%. For example, if you deposited $1,000 into the account and maintained that balance for one year, you would earn $39 in interest over that period based on the current APY.

The chart below compares the Apple Card savings account's rate to some other popular high-yield savings accounts in the U.S., as of writing.

Provider	APY*
Ally	3.85%
Apple Card Savings	3.9%
Marcus by Goldman Sachs	3.9%
Discover	3.9%
American Express	3.9%
Capital One	3.9%
Citizens Bank	3.9%
SoFi	4%
Barclays	4.1%
Synchrony	4.1%
PNC Bank	4.15%
Betterment	4.25%
Wealthfront	4.25%
UFB Direct	4.31%
Fierce	4.5%
CIT Bank	4.55%
Openbank by Santander	5%
Pibank	5%

* Advertised APYs as of December 5, 2024, excluding promotional rates and affiliate bonuses. Minimum balance requirements and other conditions vary per account. APYs can change at any time, so we cannot guarantee the accuracy of the rates listed above.

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 million, up from $250,000.

When the account launched, Apple and Goldman Sachs offered an APY of 4.15%, but the rate has fluctuated in line with U.S. Federal Reserve benchmark rate changes. The APY peaked at 4.5% in early 2024, and the current 3.9% is an all-time low.

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 if this will have any impact on Apple Card holders. JPMorgan, owner of Chase Bank, reportedly could take over as Apple's financial partner.

Article Link: Apple Card Savings Account's Lowered Rate Compared to Other Options

 

[PsykX]

3.9%... according to my broker I got +103% with AAPL and +53% with an S&P500 ETF since 2022 😅
OK, I know, I can't compare the stock market and a savings account, and next year I could be -30%. But I'd still be way more profitable.

But nevertheless, 3.9% is one of the lowest options out there. It's not even attractive. It's great for old people who don't want to risk anything. They can compensate as much as they want with an easy-to-use interface, what most users want, I think, is to get richer.

 

[Baggy Spandex]

SPAXX default core @ Fidelity in brokerages offers similar insurance (via SIPC) and is currently 4.26%, though all rates are always subject to change.

I see no reason to sit in the Apple HYSA.

 

[orangeadrenaline]

SPAXX default core @ Fidelity in brokerages offers similar insurance (via SIPC) and is currently 4.26%, though all rates are always subject to change.

I see no reason to sit in the Apple HYSA.

If you’re going that route, might as well go to Vanguard for an extra .3% due to lower fees.

 

[cateye]

For example, if you deposited $1,000 into the account and maintained that balance for one year, you would earn $39 in interest over that period based on the current APY.

This is incorrect due to compounding since savings account interest is paid monthly. e.g. Your hypothetical deposit of $1000 pays 3.9%. At the end of one month, you would have $1003.90. For the second month, you're earning interest on $1003.90, not the original $1000.

Yes, in this example, the difference across a year is going to be minuscule; a matter of pennies. But, if you're chasing earnings in a HYSA, one would hope you're working with significantly more than $1000. Otherwise, may as well leave it in your Big Bank™ savings account earning 0.5% or whatever and hold it for instant liquidity instead of growth.

Baggy has the right idea, though—If liquidity + earnings is the goal, various money market funds are still throwing off decent earnings. They just require more active management since the rates can change much more frequently.

EDIT: Whoops, I totally screwed this up. See cjgrif's correction below.

 

[cjgrif]

This is incorrect due to compounding since savings account interest is paid monthly. e.g. Your hypothetical deposit of $1000 pays 3.9%. At the end of one month, you would have $1003.90. For the second month, you're earning interest on $1003.90, not the original $1000.

Yes, in this example, the difference across a year is going to be minuscule; a matter of pennies. But, if you're chasing earnings in a HYSA, one would hope you're working with significantly more than $1000. Otherwise, may as well leave it in your Big Bank™ savings account earning 0.5% or whatever and hold it for instant liquidity instead of growth.

Baggy has the right idea, though—If liquidity + earnings is the goal, various money market funds are still throwing off decent earnings. They just require more active management since the rates can change much more frequently.

APY - Annual Percentage Yield
APR - Annual Percentage Rate

The APY takes into account the compounding, so what MacRumors states is correct. The actual periodic rate is lower than the advertised APY.

 

[coffeemilktea]

With $1000, you'd be better off buying treasury bonds or CDs. If you're okay with a little risk, index funds would give you a much better return too.

Or just make old Tim happy and put it all in AAPL shares.

 

[Baggy Spandex]

If you’re going that route, might as well go to Vanguard for an extra .3% due to lower fees.

For sure, either or. There are many options out there!

 

[ersan191]

SPAXX default core @ Fidelity in brokerages offers similar insurance (via SIPC) and is currently 4.26%, though all rates are always subject to change.

I see no reason to sit in the Apple HYSA.

FDIC is safer than SIPC

 

[H3boy]

For now, it's still early in the rate adjustment period. The others will drop also, just wait.

 

[centauratlas]

3.9%... according to my broker I got +103% with AAPL and +53% with an S&P500 ETF since 2022 😅
OK, I know, I can't compare the stock market and a savings account, and next year I could be -30%. But I'd still be way more profitable.

But nevertheless, 3.9% is one of the lowest options out there. It's not even attractive. It's great for old people who don't want to risk anything. They can compensate as much as they want with an easy-to-use interface, what most users want, I think, is to get richer.

The nice thing is that it goes in automatically so you get the rate right away. Then every so often, just transfer somewhere else to invest. It isn't ideal, but to me it is better to have it get the 3.9% today and than nothing while waiting.

 

[contacos]

Cute! BitCoin gave me 165 % over the last year

 

[cateye]

APY - Annual Percentage Yield
APR - Annual Percentage Rate

The APY takes into account the compounding, so what MacRumors states is correct. The actual periodic rate is lower than the advertised APY.

(facepalm) You are 100 percent* correct. Rookie mistake here as I misread the column in MR's chart labeling the rates. Thank you for the correction. I need more coffee.

* = APY. ;-)

 

[MacDaddyPanda]

For now, it's still early in the rate adjustment period. The others will drop also, just wait.

Yeah Im with Amex HYSA too and they dropped to 3.9% first. Looks like the rest of the HYSA industry is following suit . I used to have Marcus GS HYSA but their crap website wouldn’t work with Brave browser. And it had been broken for few months until I decided to close and move it. Id rather bank with a reliable banking site then chase the minuscule rate.

 

[H3boy]

Cute! BitCoin gave me 165 % over the last year

Enjoy your capital gains tax 😂

 

[joshwithachance]

I have a strong feeling those 5% APY accounts at Pi and Openbank are going to drop their rates below 5% very soon as well.

 

[contacos]

Enjoy your capital gains tax 😂

You don't have to pay tax if you hold them for more than 12 months before selling here

 

[mnsportsgeek]

You don't have to pay tax if you hold them for more than 12 months before selling here

You still would be subject to long term capital gains.

But I'm not sure why H3boy thinks it's so funny to have to pay tax on an investment income. It's certainly better than not having investment income.

 

[marstan]

3.9%... according to my broker I got +103% with AAPL and +53% with an S&P500 ETF since 2022 😅
OK, I know, I can't compare the stock market and a savings account, and next year I could be -30%. But I'd still be way more profitable.

This is such an ignorant comment. You must take risk into account with return when looking at future investments. Your comment is like someone who goes without, say, fire/flood insurance, never experiences fire or flood and then claims after the fact that he was right not to have spent money on insurance. Wrong (unless one has the wealth to self-insure). The insurance is to prevent catastrophic loss and ensure peace of mind.

Yeah, if I knew for certain that I'd get 100% return in the stock market then a no-brainer. But you don't know that. Which leaves you with uncertainty, i.e. risk. It is fine to take risk but only if you understand it.

 

[PsykX]

This is such an ignorant comment. You must take risk into account with return when looking at future investments. Your comment is like someone who goes without, say, fire/flood insurance, never experiences fire or flood and then claims after the fact that he was right not to have spent money on insurance. Wrong (unless one has the wealth to self-insure). The insurance is to prevent catastrophic loss and ensure peace of mind.

Yeah, if I knew for certain that I'd get 100% return in the stock market then a no-brainer. But you don't know that. Which leaves you with uncertainty, i.e. risk. It is fine to take risk but only if you understand it.

I've been heavily interested in the stock market and investments for at least the last 5 years, so I'm far from being ignorant regarding this topic ;-)

3.9% is terribly low, no matter how you look at it. People still bite for it, because people are afraid of taking risk with their money. But there are alternative options where the risk is almost zero, including from very well known banks, which bring a higher percentage.

 

[jasonsmith_88]

I've been heavily interested in the stock market and investments for at least the last 5 years, so I'm far from being ignorant regarding this topic ;-)

3.9% is terribly low, no matter how you look at it. People still bite for it, because people are afraid of taking risk with their money. But there are alternative options where the risk is almost zero, including from very well known banks, which bring a higher percentage.

There’s more to a savings account than just the interest rate. While I’ve never used financial products from Apple, I have used financial products from financial companies, and knowing how bad they are, I suspect Apple’s experience is superior to anything else on the market. This may not be worth anything to you, but it is worth something to many people. We don’t live in a world of absolute utilitarianism.

 

[weeener]

I've been heavily interested in the stock market and investments for at least the last 5 years, so I'm far from being ignorant regarding this topic ;-)

3.9% is terribly low, no matter how you look at it. People still bite for it, because people are afraid of taking risk with their money. But there are alternative options where the risk is almost zero, including from very well known banks, which bring a higher percentage.

For a savings account? No there aren’t. They top out at 5% and that’s with the horrible service that comes with pibank, take a look at their reviews.

For a savings account 4% is competitive.

‘Almost zero risk’ does not equal ‘zero risk’

 

[midori matcha]

This is like the second or third time they lowered the rates in this year alone, wtf

 

[FoxyKaye]

Still better than my credit union, but... Anybody using Pibank, and what do you think?

 

[marstan]

I've been heavily interested in the stock market and investments for at least the last 5 years, so I'm far from being ignorant regarding this topic ;-)

Time spent studying a topic is no guarantee that you have learned anything. You're homework is far from complete.