Apple now has a savings account that can be managed through the iPhone app and earns more than 4% interest. Setting up the savings account is easy, but users must have a valid Apple Card. Goldman Sachs is in charge of the accounts. If you want to Know how to Setup Apple Savings Account.
Once the account is set up, Apple Cash, which is cash back from purchases made with an Apple credit card, can be automatically put into the savings account that pays interest. Users can also move money from their savings account to their Apple Cash account if they want to spend it or send it to a friend.
Users can put more money into the savings account and get the daily compounding of the 4.15% annual yield. As interest rates change over time, the yield will also change. The FDIC will protect deposits of up to $250,000 in an Apple Savings account. All Apple Card holders in the U.S. can now use the feature in Apple’s Wallet app.
How to Setup Apple Savings Account
- Open the Wallet app on iPhone.
- Tap on your Apple Card.
- Tap the (…) more button in the corner, then choose “Daily Cash”.
- Look for the “Savings – Set Up” option and tap on that.
- Follow the onscreen instructions to open your Apple Savings account.
Apple Savings — Terms & Conditions
Apple advertises the account as a place to put Daily Cash rewards, but customers can also move money from another savings account into Apple Savings.
- As a savings account, you can’t use the Apple Card or Apple Pay to spend money or buy things from Savings. Instead, users must move money from Savings to Apple Cash or a linked bank account outside of Apple.You can add Apple Card to your iPhone if you own or share an active Apple Card account.
- You must be at least 18 years old.
- Have a Social Security number or a number that identifies you as an individual taxpayer.
- You must live in the US and have a valid US address.
- Set up two-factor authentication for your Apple ID and update to the newest version of iOS. With iOS 16.4 and later, you can save money.
Can you explain the functioning of an Apple Savings account?
Once you sign up for a Savings account, your Daily Cash will be automatically put into this account. So, you get interest on the cash back you get for purchases made with your Apple Card. Also, you can get the high-yield interest by transferring money from an outside bank account or adding Apple Cash.
The 4.15% interest rate is more than ten times the average interest rate. This has made the competition between banks very fierce. Most savings accounts in the US pay less than 0.50%.
But remember that you can’t use your Apple Card or Apple Pay to get at the money in your Savings. To spend the interest money or give it to a friend, you must move it from Savings to Apple Cash or to a connected external bank account. Don’t be afraid! Apple will not charge any fees to take money out of your account.
Advantages of having an Apple Savings account
- Apple Card holders get 3% Daily Cash when they use Apple Pay at Apple and with a select group of retailers like Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware. They get 2% Daily Cash when they use Apple Pay at other retailers and 1% on all other purchases.
- So, thanks to the 4.15% interest on Daily Cash, Apple Savings could help you build up a good amount of wealth.
- It also gives you a lot of privacy and security because all of the features are built into the Wallet app’s dynamic dashboard.
- The best thing is that Apple is taking the path with no fees. On the financial market, there are several savings account products with monthly maintenance fees, minimum monthly balances, and minimum initial deposits needed to get certain interest rates. On the other hand, Apple says there will be “no fees, no minimum deposits, and no minimum balance requirements” for its Apple Savings account.
But most important, “It is really vital that deposits are FDIC insured,” she said. Apple’s savings accounts, managed by Goldman Sachs, are covered up to $250,000.
Apple’s high-yield savings account offers a solid 4.15% APY and a fee-free experience to those with an Apple Card. For those who want the highest possible rate or don’t have an Apple Card, you have plenty of other options to earn high a interest rate with another account.
To take advantage of the Apple cash savings account, you need to be an owner (or co-owner) of an Apple Card account. No minimum deposits, fees, or balance are required.