Apple Savings Account Interest Rate Increased to 4.25% APY

[MacRumors]

Apple Savings account holders are currently receiving push notifications informing them that Goldman Sachs has raised the interest rate on the account to an annual percentage yield (APY) of 4.25% from 4.15%. This is the first increase in the interest rate since the feature launched back in April.

While the increase is a welcome one for Apple Savings customers and is a fairly competitive rate, there are some other high-yield savings accounts on the market that currently offer even higher rates.

The interest rate hike comes as Apple and Goldman Sachs are working out how to terminate their partnership for Apple Card and Apple Savings as Goldman Sachs seeks to exit the consumer business.

Recent reports have indicated that Apple has submitted a proposal to Goldman Sachs that would wind down the partnership over the next 12 to 15 months, but for the time being, there have been no changes to the availability of Apple Card and Apple Savings.

Apple and Goldman Sachs are reportedly looking for a new partner or partners to take over management of Apple Card and Apple Savings, and it's unclear how the offerings may be affected by such a shift.

(Thanks, KPOM!)

Article Link: Apple Savings Account Interest Rate Increased to 4.25% APY

 

[Justin Cymbal]

I just got a notification on my iPhone a few minutes ago that my rate was going to be increased to 4.25% so I’m glad that this has finally happened

I use my Apple savings account all the time because I use my Apple Card on an almost daily basis and all of my cash rewards are automatically deposited into my Apple savings account

The interest rate is also very very good considering what I currently get from my Bank of America checking account and Apple also makes it very easy to transfer the money from my Apple savings to my Bank of America checking account for when I need quick access to the funds

 

[Velin]

It's decent, and I like Apple Pay, Apple Card, and the Apple Savings account. But there are money market funds paying 5.30% and even higher. In the world of finance, 100 basis points is an enormous spread -- enough to make enormous profits.

Heck, anyone servicing this account could simply take these deposits, buy one-month T-Bills at the open market auction, and pocket a very healthy profit for executing a kindergarten-level trade requiring zero skill, and nearly zero risk.

 

[Coreymac84]

Decent but there’s better from reputable banks.

 

[mrr]

I’ll take it.

 

[currocj]

Nothing like inflation to make 4.25% look like losing ground!

 

[sw1tcher]

So Goldman Sachs is giving Apple Savings account holders 4.25% while their Marcus account holders get 4.5%.

🤣

 

[caliguy]

5% with Wealthfront. They raise rates within 2 days of a Fed announcement.

 

[poematik13]

CD’s are 5.35% lol. thats what apple is buying with the money you deposit into the wallet app. They give you 4.25 and keep the difference

 

[Apple Fan 2008]

So Goldman Sachs is giving Apple Savings account holders 4.25% while their Marcus account holders get 4.5%.

🤣


View attachment 2327291

I’m assuming this is why Apple ditched them.

 

[segfaultdotorg]

What is the iSavings Pro account up to now?

 

[sw1tcher]

CD’s are 5.35% lol. thats what apple is buying with the money you deposit into the wallet app. They give you 4.25 and keep the difference

Uh, since Apple is not a bank, Apple cannot hold the funds. Any funds deposited into an Apple Savings account goes to Goldman Sachs, Apple's partner. Therefore, it is Goldman Sachs who is keeping the difference between what they do with the funds (e.g. buying short term Treasuries that yield 5.4%+) and the 4.25% they pay account holders.

 

[MacDaddyPanda]

lol, finally, but too little too late. I moved the bulk back to my Marcus HYSA. Though in hindsight I shouldn't have locked down a portion of my savings in a Different banks CD's for 9 months at 5.13%. The amount I put in for the CD doesn't amount to a whole lot by the end of the 9 months. It would have been better to leave it liquid in the Marcus for a larger total.

 

[sevoneone]

I’m assuming this is why Apple ditched them.

It's the other way around. Goldman wants out of the consumer banking business. Turns out running a consumer credit operation with no opaque BS or fine-print predatory practices doesn't make a lot of money. I just hope Apple finds a new partner that will keep all the straightforward transparency and options they have established.

 

[KPOM]

It's decent, and I like Apple Pay, Apple Card, and the Apple Savings account. But there are money market funds paying 5.30% and even higher. In the world of finance, 100 basis points is an enormous spread -- enough to make enormous profits.

Heck, anyone servicing this account could simply take these deposits, buy one-month T-Bills at the open market auction, and pocket a very healthy profit for executing a kindergarten-level trade requiring zero skill, and nearly zero risk.

Yes, though buying one-month T-Bills requires a bit of effort. You don’t pay state income tax on the income, though.

 

[Robert.Walter]

Disappointing increase from a first mover become laggard.

It's not competitive.

There are high yield savings accounts with fdic and no fees at 5.25 apy.

 

[aquaman1992]

Too little too late. Literally moved my money out yesterday. With such small increase, not worth the transfer back. I’ll stick to my 5%+ CD/Bonds

 

[KPOM]

It's decent, and I like Apple Pay, Apple Card, and the Apple Savings account. But there are money market funds paying 5.30% and even higher. In the world of finance, 100 basis points is an enormous spread -- enough to make enormous profits.

Heck, anyone servicing this account could simply take these deposits, buy one-month T-Bills at the open market auction, and pocket a very healthy profit for executing a kindergarten-level trade requiring zero skill, and nearly zero risk.

Agreed but 100 bps isn’t that much on the $700 in cash back that I’ve gotten on the Apple Card over the past few months. The fact that I’m getting any interest at all is a positive and it’s one less transaction I need to make. I use the rebates to fund my Christmas purchases. Yes, I could get an extra $5 or so if I religiously transfer funds to my high-yield money market account but why bother?

 

[TheDailyApple]

It's the other way around. Goldman wants out of the consumer banking business. Turns out running a consumer credit operation with no opaque BS or fine-print predatory practices doesn't make a lot of money. I just hope Apple finds a new partner that will keep all the straightforward transparency and options they have established.

Pretty much. Apple designed the Apple Card to be easy to keep up with, and credit providers don’t make anything if no one carries a balance. I forget what it was, but banks internally have pretty ugly names for people who pay off their balance every month.

 

[Shasterball]

4.25% is pretty modest. I've been at 5%+ since the spring at BofA...

 

[cloud25]

I'll take it. Know there's higher rates out there but the convenience with Apple is good enough for me. 2% of Apply Pay going straight into savings, being accessible in your wallet app, simple to view and use interface, etc. Not worth chasing higher rates as high yield savings are more for short term anyways.

 

[Mrkymrk99]

Decent but there’s better from reputable banks.

It’s Goldman Sachs but not for long.

 

[Mrkymrk99]

4.25% is pretty modest. I've been at 5%+ since the spring at BofA...

You can park your money in your Fidelity core position and make 5.12%

 

[Blackstick]

I'm seeing 6-7% from Fidelity.

 

[macduke]

Wealthfront has 5% with free same day withdrawls. It’s where I keep my emergency fund, which I want to be more accessible than my other investments, while still earning a decent rate. Makes it easy to quickly transfer money to my checking if I need a major car repair, new A/C system for my house, a folding iPhone Ultra, etc. You never know!