Apple Card to Offer Savings Account for Daily Cash

[MacRumors]

Apple today announced that Apple Card users will be able to open a new "high-yield" savings account from Goldman Sachs and have their Daily Cash automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements.

Apple says the savings account option will be available "in the coming months," but it did not reveal what the interest rate will be for Daily Cash balances. Goldman Sachs' existing online high-yield savings account Marcus currently has a 2.15% APR.

As with all Apple Card features, users will be able to manage the savings account through the Wallet app. Once the account is set up, all Daily Cash received from that point on will be automatically deposited into it, unless a user opts to continue having it added to their Apple Cash card. Users can change where their Daily Cash is sent at any time.

Apple Card offers 2% Daily Cash on any purchase made with Apple Pay, and 3% Daily Cash on purchases made with Apple Pay at select retailers, including Apple, Uber, Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware. Apple Card users who take advantage of the savings account option would be able to earn interest on their Daily Cash automatically, allowing the amount to grow over time.

Users will be able to deposit additional funds into the savings account through a linked bank account, or from their Apple Cash balance. Likewise, users will be able to withdraw funds from the savings account at any time, with no fees.

"Savings enables Apple Card users to grow their Daily Cash rewards over time, while also saving for the future," said Apple Pay chief Jennifer Bailey. "Savings delivers even more value to users' favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives."

Launched in 2019, the Apple Card remains exclusive to the United States. Apple's credit card can be managed completely through the Wallet app on the iPhone, with a physical version available for use at stores that do not accept contactless payments. Daily Cash is limited to 1% for purchases made with the physical Apple Card.

Article Link: Apple Card to Offer Savings Account for Daily Cash

 

[sniffies]

Great news! So far, I have $0.61 in Daily Cash. Just $1,199,999.39 more to go for retirement.

 

[MayaUser]

Now thats all in

 

[macsplusmacs]

Nice. I currently transfer my cash each month to a checking but this might get me to switch. Problem is apple keeps making stuff I want to spend money on so....

 

[Spaceboi Scaphandre]

Opening the savings account with Goldman Sachs though...no thanks.

 

[9646829]

I love Apple Card updates. Love to be a part of one someday.

 

[jeffmetanna]

Another way for Apple to horde cash. With the interest rates going up, it's a win-win for everybody.

 

[Internet Enzyme]

What exactly does "high-yield" entail? Banks love to use that term, and the "high yield" is like 0.1% per annum: $10 per year with $10k deposited. Very curious to see what the rate is.

 

[ELman]

I have used Ally as a high yield bank for years. They are currently at 2.25% with no minimum balance. It will be interesting to see if Goldman will offer the same.
https://www.ally.com/bank/online-savings-account/

 

[alexandr]

What exactly does "high-yield" entail? Banks love to use that term, and the "high yield" is like 0.1% per annum: $10 per year with $10k deposited. Very curious to see what the rate is.

That's exactly what I'm wondering. I'm happy to opt in, but it will have to be better than what I currently have..

 

[Expos of 1969]

Wow....Goldman can barely run the Apple Card and now Tim recommends you open a savings account with Goldman. He wants you to forget the damage they did to millions of families and the economy in 2008 with their immoral and criminal actions. Tim's sickening quest for every penny has no boundaries.

 

[softtree]

Goldman’s HYSA through their Marcus brand currently pays 2.15% APY, that might give some indication of the rates to expect.

 

[sw1tcher]

What exactly does "high-yield" entail? Banks love to use that term, and the "high yield" is like 0.1% per annum: $10 per year with $10k deposited. Very curious to see what the rate is.

I wouldn't expect it to be higher than their existing high yield savings accounts. A Marcus online savings account is currently yielding 2.15% and has the same description as this ("no fees, no minimum deposits, and no minimum balance requirements."). I could see it at most 0.1% higher which would put it on par with the Discover savings account at 2.25%

No way this matches or even comes close to the 3.15% at Brilliant Bank or even the 2.50% at Sofi and 2.70% at Cit Bank

 

[Sasparilla]

It'll be interesting to see what kind of interest rates they end up offering. Currently this money goes into your Apple Cash card (which almost functions like a small card only checking account in alot of respects).

Trying to think of why they're doing this, cause this costs money to set up and do, could see this as another enticement to use your Apple Card more as I'm guessing the Covid experience put a damper on its usage / growth.

 

[Expos of 1969]

Trying to think of why they're doing this, could see this as another enticement to use your Apple Card more as I'm guessing the Covid experience put a damper on its usage.

Hmm....... perhaps $$$$ ?

 

[canyonblue737]

I'm not complaining about this as an Apple Card user but saying it helps "live healthier financial lives" is a stretch... the only way you build a significant amount of Apple Cash is if you spend a very large amount in the Apple Card, large enough that even "high yield" (good luck, I'd be stunned if that number is over 1%) savings on the Apple Cash won't amount to a hill of a beans compared to your spending in your overall financial picture.

 

[ghanwani]

Maybe Apple didn't get the memo. The era of easy money is over. It no longer pays to be a bank that makes stuff (consumer electronics in Apple's case). In the new economy, you have to focus on just making stuff. Goldman Sachs itself looks like it's de-emphasizing its consumer banking division. And its Apple Card business has been compared to subprime loans.

 

[chrono1081]

Wow....Goldman can barely run the Apple Card and now Tim recommends you open a savings account with Goldman. He wants you to forget the damage they did to millions of families and the economy in 2008 with their immoral and criminal actions. Tim's sickening quest for every penny has no boundaries.

Apple Card works just fine, I had literally one hiccup since it was released. The "damage" you speak of in 2008 is all in your head, literally, and this isn't Apples money, they don't keep what you put in there.

 

[Mr. Dee]

Would be nice if you could easily move cash from another bank account into it.

 

[jimbobb24]

If it can stem the blood letting my money is taking from inflation I would be happy to move my savings into it...because right now its very low yield.

 

[CharlesShaw]

It’s a nice option for those who let daily cash sit unused and want to earn interest, but I like to spend mine with Apple Pay, I don’t track daily cash in my budget, and I don’t want another 1099-INT at tax time, lol.

 

[Expos of 1969]

Apple Card works just fine, I had literally one hiccup since it was released. The "damage" you speak of in 2008 is all in your head, literally, and this isn't Apples money, they don't keep what you put in there.

The Apple Card works just fine for you so your refined sense of logic tells you it must work just fine for everyone. Seek some education ASAP.

 

[PauloSera]

Now add 1% annual interest to it, paid by Apple.

 

[citysnaps]

What exactly does "high-yield" entail? Banks love to use that term, and the "high yield" is like 0.1% per annum: $10 per year with $10k deposited. Very curious to see what the rate is.

The current savings account rate at Goldman/Marcus is 2.15%.

 

[citysnaps]

Opening the savings account with Goldman Sachs though...no thanks.

Why is that?