Apple Card Customer Agreement Updated for 'Upcoming' Savings Account Feature

Goldman Sachs this week updated its Apple Card customer agreement to reflect the credit card's upcoming Daily Cash savings account feature, which was expected to launch with iOS 16.1 but appears to have been delayed.

Apple Card Savings
"To enable new ways to use Daily Cash like the upcoming Savings account feature, we are updating the Daily Cash Program section of your Apple Card Customer Agreement," reads an email sent to Apple Card holders this week.

In October, Apple announced that Apple Card users would soon be able to open a new high-yield savings account from Goldman Sachs and have their Daily Cash cashback rewards automatically deposited into it, with no fees, no minimum deposits, and no minimum balance requirements. The account will be managed through the Wallet app on the iPhone.

The savings account was listed in the release notes for the iOS 16.1 Release Candidate, but it did not end up launching with that update. The savings account has not been present in any iOS 16.2 betas, so it's unclear when it will become available, but Goldman Sachs evidently continues to lay the groundwork for the feature's launch.

Once the account is set up, all Daily Cash received from that point on will be automatically deposited into it and start earning interest, unless a user opts to continue having Daily Cash added to their Apple Cash balance. Apple Card provides 2-3% Daily Cash on purchases made with Apple Pay and 1% on purchases made with the physical card.

Launched in 2019, Apple's credit card remains exclusive to the United States. Customers who sign up for an Apple Card and use it to purchase Apple products through December 25 will receive 5% Daily Cash as part of a limited-time promotion.

Top Rated Comments

Chazak Avatar
18 months ago

Define "high yield" in high yield savings. If it's Marcus' 3%, I must remind you that T-bills offer 4+% and the interest from them is exempt from state income tax.
https://www.bloomberg.com/markets/rates-bonds/government-bonds/us
So most folks looking to invest more than $1K would be better served by opening a brokerage account and buying T-bills. And then maybe getting their credit card from that brokerage instead. Fidelity, e.g., offers a flat 2% on everything cash back card.
Have you actually done this other than through a mutual fund or money market instrument? Have you ever opened a brokerage account for the sole purpose of doing what you are proposing? Most people will not be better served with direct purchases through a brokerage account. You ignore liquidity issues, minimum invest requirements on certain instruments and clearing time and procedures.

You are also ignoring interest rate risk inherent with not holding a bill or bond for full term. If you bought 1 yr bills six months ago you have lost badly. In fact, you have less than when you started. $1 in t-bills bought six months ago is worth 97 cents right now and that does not even consider transaction costs. There is an inverse relationship between interest rates and principal value. One goes up, the other goes down.

It is also unlikely someone dealing in minimum denominations can tie their money up for the periods required. Oops, I need that money next Friday because my water heater failed and it is December and this isn't Florida. What do you mean? Fine, but you are only getting 97 cents back for each dollar you put it.

A simple interest savings account is often the instrument of choice due to convenience, liquidity and zero or close to it transaction costs.

Your statement is so generalized that its value is questionable. Every individual's situation and constraints are different. There is no "one size fits all" with this which is why professional advice is important.
Score: 17 Votes (Like | Disagree)
Jimmdean Avatar
18 months ago

Define "high yield" in high yield savings. If it's Marcus' 3%, I must remind you that T-bills offer 4+% and the interest from them is exempt from state income tax.
https://www.bloomberg.com/markets/rates-bonds/government-bonds/us
So most folks looking to invest more than $1K would be better served by opening a brokerage account and buying T-bills. And then maybe getting their credit card from that brokerage instead. Fidelity, e.g., offers a flat 2% on everything cash back card.
You may be right, but a lot of people have Apple Card because it is easy. This saving account would also be easy. That convenience does have value.
Score: 8 Votes (Like | Disagree)
cmChimera Avatar
18 months ago

it would be nice if there was an option to add funds from a debit card in the wallet app
You can do this already.
Score: 6 Votes (Like | Disagree)
russell_314 Avatar
18 months ago

Irrelevant because from my reading everyone on MacRumors are independently wealthy original Apple shareholders who pay their statements in full every month.
You don't have to be independently wealthy to pay off your monthly balance. You just have to have enough discipline not to charge more than you can afford to pay. This is something I've learned the hard way. I used to think a credit card limit was like a bank account balance. It was money that I could spend.
Score: 5 Votes (Like | Disagree)
Chazak Avatar
18 months ago

This is what I do. I buy individual t-bills and a few bonds (> 1 year maturity). Min is $1000. It’s easy to do auto-roll for those who want it. And if you will need the money sooner than 4 weeks (min T-bill maturity) then it can be left in the money market fund.
You are ignoring principal and rate risk or at least not mentioning it.

I get it and employ similar strategies. Much of that behavior is enabled by my personal finances and what I have managed to accumulate and the fact most of my financial responsibilities to others have been satisfied leaving me with less constraints and a higher level of liquidity. It's just not practical for most people.
Score: 4 Votes (Like | Disagree)
iForgotten Avatar
18 months ago
Save money by spending money, brilliant!
Score: 4 Votes (Like | Disagree)

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