The Apple Card's high-yield savings account received an interest rate cut overnight, the fourth time it has done so this year.
The Apple Card savings account's annual percentage yield (APY) dropped from 4.1% to 3.9%. Push notifications regarding the cut were sent to Apple Card users on Tuesday evening. Savings account interest rates fluctuate with changes made by the Federal Reserve, and when rates are lowered, banks cut their APYs.
When the Apple Card's savings account first became available, it offered an APY of 4.15%. The rate then increased three times, first to 4.25%, then to 4.35%, and finally to 4.5%, before being lowered to 4.4% in April 2024. This was followed by two more cuts, one in September to 4.25%, and another in early October to 4.10%.
Apple introduced its savings account in April 2023, partnering with Goldman Sachs. Designed for Apple Card holders, the account is exclusively available to U.S. residents aged 18 and above. It can be managed through the iPhone's Wallet app, offering a user-friendly experience with no fees, minimum deposits, or balance requirements.
The account allows users to earn interest on their Daily Cash cashback balance, as well as on funds transferred from linked bank accounts or Apple Cash balances. Initially capped at $250,000, the maximum balance has since been increased to $1,000,000, providing more flexibility for high-value savers.
Opening an account is straightforward. Users simply need to access their Apple Card in the Wallet app, tap the three-dot menu at the top of the screen, select Daily Cash, and then choose the option to set up savings. This process integrates seamlessly with the existing Apple Card interface.
It's worth noting that Goldman Sachs has reportedly indicated plans to end its consumer lending partnership with Apple. However, the potential impact of this change on Apple Card holders remains uncertain at this time. JPMorgan, owner of Chase Bank, reportedly could take over as Apple's financial partner.
