Here's How the Apple Card's New Savings Rate Compares to Alternatives

[MacRumors]

Following the Apple Card savings account's recent rate increase to 4.35%, we have put together this guide comparing the annual percentage yields (APYs) of some popular high-yield savings accounts (HYSAs) available to U.S. residents.

Apple's rate now matches that of popular HYSAs offered by the likes of American Express, Capital One, and Discover, but there are a handful of other options that offer even higher APYs in the 4.5% to low 5% range, such as Marcus by Goldman Sachs and Wealthfront. Balance limits and other requirements vary.

There are many other HYSAs not listed in our chart, so be sure to do your research before deciding which option is best suited for you.

Provider	Advertised APY*
Apple (Goldman Sachs)	4.35%
American Express	4.35%
Ally	4.35%
Barclays	4.35%
Capital One	4.35%
Discover	4.35%
Citizens Bank	4.5%
Marcus (Goldman Sachs)	4.5%
SoFi	4.6%
PNC Bank	4.65%
CIT Bank	4.65% to 5.05%
Synchrony	4.75%
Wealthfront	5%
UFB Direct	5.25%

[td]Betterment[/td]
[td]4.75%[/td]

* Advertised APYs as of January 5, 2024. APYs may vary.

Ordinary savings accounts at popular banks such as Bank of America and Chase typically offer APYs of only 0.01% or slightly higher.

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 $250,000, which is lower than some HYSAs, and balances are fully insured by the U.S. Federal Deposit Insurance Corporation (FDIC).

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 will reportedly be ending its partnership with Apple within the next year or so, but it is unclear how this might impact the Apple Card.

Article Link: Here's How the Apple Card's New Savings Rate Compares to Alternatives

 

[!!!]

Ordinary savings accounts at popular banks such as Bank of America and Chase typically offer APYs of only 0.01% or slightly higher.

Credit Unions with much higher rates exist. I don't understand why anyone still uses those massive banks. I only ever hear bad things about them.

 

[jimbobb24]

Every rate increase is just a crushing reminder that inflation is choking me. I am glad this claws a tiny bit of my losses from inflation back.

 

[ThisIsMike]

I have a CIT Platinum savings account, which has an interest rate of 5.05% (not 4.65, and as long as the account balance is over $5,000). This table should be corrected.

 

[thejadedmonkey]

I'm going to need to give PNC a call, because I'm seeing 0.02% APY for my savings account.

 

[Sorinut]

The difference between 4.35% and 5% over a year is, $162.50/$25k, which is the amount I keep in my liquid savings. Maybe it's worth moving around for you, maybe not.

I use Capital One, currently, just because it's handy. Everything else is with is with Edward Jones, but they don't have much of an online presence.

 

[GMShadow]

I'm going to need to give PNC a call, because I'm seeing 0.02% APY for my savings account.

Different accounts - a standard savings account tied to a checking account will always pay a pittance.

 

[sloheim]

Bread Financial is at 5.15%. They always seem to be among the strongest.

 

[Joe Rossignol]

I have a CIT Platinum savings account, which has an interest rate of 5.05% (not 4.65, and as long as the account balance is over $5,000). This table should be corrected.

You're right, I was looking at this page: https://www.cit.com/cit-bank/savings-connect

This page shows your Platinum Savings account: https://www.cit.com/cit-bank/bank/savings

I have updated the chart to say "4.65% to 5.05%" for CIT's HYSAs.

 

[Mrkymrk99]

Following the Apple Card savings account's recent rate increase to 4.35%, we have put together this guide comparing the annual percentage yields (APYs) of some popular high-yield savings accounts (HYSAs) available to U.S. residents.

Apple's rate now matches that of popular HYSAs offered by the likes of American Express, Capital One, and Discover, but there are a handful of other options that offer even higher APYs in the 4.5% to low 5% range, such as Marcus by Goldman Sachs and Wealthfront. Balance limits and other requirements vary.

There are many other HYSAs not listed in our chart, so be sure to do your research before deciding which option is best suited for you.

Provider	APY*
Apple (Goldman Sachs)	4.35%
American Express	4.35%
Ally	4.35%
Barclays	4.35%
Capital One	4.35%
Discover	4.35%
Citizens Bank	4.5%
Marcus (Goldman Sachs)	4.5%
SoFi	4.6%
CIT Bank	4.65%
PNC Bank	4.65%
Synchrony	4.75%
Wealthfront	5%
UFB Direct	5.25%

* Advertised APYs as of January 5, 2024. APYs may vary.

Ordinary savings accounts at popular banks such as Bank of America and Chase typically offer APYs of only 0.01% or slightly higher.

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 $250,000, which is lower than some HYSAs, and balances are fully insured by the U.S. Federal Deposit Insurance Corporation (FDIC).

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 will reportedly be ending its partnership with Apple within the next year or so, but it is unclear how this might impact the Apple Card.

Article Link: Here's How the Apple Card's New Savings Rate Compares to Alternatives

Following the Apple Card savings account's recent rate increase to 4.35%, we have put together this guide comparing the annual percentage yields (APYs) of some popular high-yield savings accounts (HYSAs) available to U.S. residents.

Apple's rate now matches that of popular HYSAs offered by the likes of American Express, Capital One, and Discover, but there are a handful of other options that offer even higher APYs in the 4.5% to low 5% range, such as Marcus by Goldman Sachs and Wealthfront. Balance limits and other requirements vary.

There are many other HYSAs not listed in our chart, so be sure to do your research before deciding which option is best suited for you.

Provider	APY*
Apple (Goldman Sachs)	4.35%
American Express	4.35%
Ally	4.35%
Barclays	4.35%
Capital One	4.35%
Discover	4.35%
Citizens Bank	4.5%
Marcus (Goldman Sachs)	4.5%
SoFi	4.6%
PNC Bank	4.65%
CIT Bank	4.65% to 5.05%
Synchrony	4.75%
Wealthfront	5%
UFB Direct	5.25%

* Advertised APYs as of January 5, 2024. APYs may vary.

Ordinary savings accounts at popular banks such as Bank of America and Chase typically offer APYs of only 0.01% or slightly higher.

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 $250,000, which is lower than some HYSAs, and balances are fully insured by the U.S. Federal Deposit Insurance Corporation (FDIC).

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 will reportedly be ending its partnership with Apple within the next year or so, but it is unclear how this might impact the Apple Card.

Article Link: Here's How the Apple Card's New Savings Rate Compares to Alternatives

Fidelity and Vanguard are currently paying ~5.3% while you have your money parked in a core account.

 

[AppleTO]

That's crazy. In Canada you'd be lucky to find a regular savings rate over 1.5%.

 

[4look4rd]

The difference between 4.35% and 5% over a year is, $162.50/$25k, which is the amount I keep in my liquid savings. Maybe it's worth moving around for you, maybe not.

I use Capital One, currently, just because it's handy. Everything else is with is with Edward Jones, but they don't have much of an online presence.

SPAXX pays 5% and its as liquid as cash.

 

[Bigkool2inSC]

i like the savings account in the wallet app.
I get paid, move money to it.
use my Apple MC (apple pay or physical card or bill pay) for everything I can.
pay off the balance at the end of the month with the money in the savings account.

2 options l like to see.
A. the ability to create a second savings account.
B. the ability to hide the account from the main wallet view.

 

[Joe Rossignol]

That's crazy. In Canada you'd be lucky to find a regular savings rate over 1.5%.

Wealthsimple offers 4%: https://www.wealthsimple.com/en-ca/pricing

 

[ChromeAce]

This is pure silliness. The amount of money you’d have to deposit to make any meaningful difference in your life based on fractions of percentages of fluctuating interest rates is so large that you’d be better off in a mutual fund.

 

[ChromeAce]

Credit Unions with much higher rates exist. I don't understand why anyone still uses those massive banks. I only ever hear bad things about them.

Because the bigger banks are much less likely to fail and when they do they get bailed out. Would never put my money in a small bank. FDIC only covers $250K of losses.

 

[ThisIsMike]

You're right, I was looking at this page: https://www.cit.com/cit-bank/savings-connect

This page shows your Platinum Savings account: https://www.cit.com/cit-bank/bank/savings

I have updated the chart to say "4.65% to 5.05%" for CIT's HYSAs.

Hey Joe, thanks. When I saw the chart at first, I freaked out! lol I thought they lowered the rate while I wasn’t looking! Which, by the way, is something everyone should be aware of - these rates can change. Be vigilant, otherwise you might go months without noticing.

 

[ThisIsMike]

This is pure silliness. The amount of money you’d have to deposit to make any meaningful difference in your life based on fractions of percentages of fluctuating interest rates is so large that you’d be better off in a mutual fund.

What mutual fund would you recommend? Also, it’s not necessarily silliness if you are sitting on a lot of cash, and some folks who have diversified portfolios might at times find themselves in that situation. It’s also possible someone wants to park cash in an HYS while they find a better use for it. Also, while you’ll be taxed on the interest in that HYS account, wont you also be taxed on the gains on the mutual fund? (Assuming it’s in a regular brokerage account.)

In the opposite situation, of someone who is really struggling- that extra $100 or what have you could mean some extra groceries, or maybe a free month of internet or utilities. You never know.

 

[victorvictoria]

Why do people still have saving accounts at banks? Fidelity Government Cash Reserves current yield is 5.01%, and offers free checking. In addition, it picks up the fees for all ATM transactions with a Mastercard or Visa sticker on the machine.

Sure, it's not FDIC insured, but then your bank is more likely to go belly up than Fidelity's cash reserves breaking the dollar. Especially investing in only short-term government issues.

 

[Sorinut]

Why do people still have saving accounts at banks? Fidelity Government Cash Reserves current yield is 5.01%, and offers free checking. In addition, it picks up the fees for all ATM transactions with a Mastercard or Visa sticker on the machine.

Sure, it's not FDIC insured, but then your bank is more likely to go belly up than Fidelity's cash reserves breaking the dollar. Especially investing in only short-term government issues.

Savings should barely be considered an investment, at any of these rates, which the market is pulling double-digits.

They are a store for liquid cash.

 

[jimbobb24]

Savings should barely be considered an investment, at any of these rates, which the market is pulling double-digits.

They are a store for liquid cash.

I guess I need to invest better. My mutual funds are still below pre-CV19 levels.

 

[klasma]

I guess I need to invest better. My mutual funds are still below pre-CV19 levels.

World index ETFs are currently 25% above pre-Covid levels. I’d recommend those for long-term investing.

 

[Robert.Walter]

Joe,
there are several FDIC insured options not on your list around 5.25-5.5, a couple:
- UFB Direct
- Milli Bank

Folks should also be aware some institutions offering 6-7% high yield savings have tiers so that the high rate is only on, say, first 1 to 5k and above drops to pittance rate. Others require a min balance.

There are many good HYSA opportunities up to 5.5% but a bit of caveat emptor applies as you do your search.

 

[profcutter]

Because the bigger banks are much less likely to fail and when they do they get bailed out. Would never put my money in a small bank. FDIC only covers $250K of losses.

Credit unions aren’t savings and loans. Most are quite stable and many are insured through NCUA.

 

[grouch]

m1 finance's savings account is 5% plus they also have a credit card and investment account options.

https://m1.finance/wsqjUj5uYk29 (referral link)

Apple provides such an awesome UI but M1 gives a better rate.