Apple card users can now open a high-yield savings account

These rewards are earned every time a cardholder uses their Apple Card to make a purchase—with select merchants offering unlimited 3% cashback. Users can change where that cashback is deposited and redirect it to their savings account to earn interest on that money, in addition to any funds they deposit from an external bank account. 

Savings helps our users get even more value out of their favorite Apple Card benefit—Daily Cash—while providing them with an easy way to save money every day,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet in a statement. “Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly—all from one place.”

Apple’s savings account boasts a 4.15% APY 

Apple’s savings account APY currently sits at 4.15%, which is over 11 times the national average. What’s more, the account does not require a minimum deposit, charge any fees, or tie savers to any minimum balance requirements. 

Savers who want to track their savings will be able to view their savings account balance and earned interest from the Savings dashboard in their wallet. And, if they need to dip into their savings account, they can do so easily by transferring that money to a linked bank account or to their Apple Cash card, with no fees.

For many loyal Apple users, adding a savings account to the mix gives them the freedom to further consolidate all of their financial accounts and have an in-depth view of their account balances from their Apple wallet. 

What should you look for when choosing a high-yield savings account?

When paired with consistent budgeting and a clear savings strategy, a high-yield savings account can help you boost your savings balance and meet your goals more quickly. However, it’s important to compare rates, fees, and requirements tied to each account before you choose an account for your savings needs. A few key figures to make note of may include: 

• APY: The interest you can expect to earn on your account balance over the course of a year. 

• Compounding frequency: This is the rate at which interest is earned and added to your balance. For example, interest can compound daily or monthly. A greater compounding frequency means that your money will have more opportunities to grow. 
• Minimum deposit: Some high-yield savings accounts will require you to deposit a certain amount of money to open your account. This can range anywhere from $0 to thousands of dollars depending on your bank or credit union. 
• Minimum balance: This is the amount of money you’ll need to keep in your account at all times to avoid any penalties and keep your account open.
• Minimum balance to earn the highest APY rate: Some banks require you to have a certain amount of money in your account to earn the advertised APY. 
• Account fees: Many high-yield savings accounts waive fees, but this isn’t the case across the board. Depending on your account, you may incur some fees for opening your account, monthly maintenance, failing to maintain a certain balance, or exceeding the number of withdrawals you’re allowed to make within a certain time period. 

The takeaway 

When it comes to growing your savings, where you put your money is just as important as how much and how often you’re saving. With the right account, you can cut down on your timeline for hitting your most important savings goals.