Apple high-yield savings account review
Over the past two years, the Federal Reserve has hiked interest rates 11 times to try and temper inflation. And, while those rate hikes are working, they have caused interest rates on lending products, like mortgage rates, to skyrocket comparatively.
But while interest rate increases are a drag on the housing and loan markets, they can increase the interest rates you receive in specific investments, such as high-yield savings accounts (HYSAs). These accounts allow you to earn up to 10 times higher interest rates or more than you can with a traditional savings account.
Apple's high-yield savings account, which launched in 2023, has been creating a lot of buzz due to its competitive yield and other unique features. Before you open an account, though, it's essential to understand the unique benefits and downsides of Apple's high-yield savings account to determine whether it makes sense for you.
Overview of the Apple high-yield savings account
In April 2023, Apple announced the debut of its new high-yield savings account in partnership with Goldman Sachs. The account offered a competitive 4.15% annual percentage yield (APY), 10 times higher than the national average — and in late December 2023, that rate was hiked to 4.25%.
You must have an Apple Card to open a high-yield savings account with the company. You can apply for the savings account in minutes, and you'll need to enter your Social Security number to activate the account.
You can deposit money in the account in two ways:
- You can transfer money from a linked bank account.
- You can set up automatic transfers from your Daily Cash— the cash back you earn on your Apple Card purchases—to your Apple Savings account.
Pros of the Apple high-yield savings account
Apple's new high-yield savings account delivers numerous perks, such as:
- Higher APYs: Compared with traditional savings accounts that often earn less than 1% yields, Apple's HYSA delivers a 4.25% APY as of December 2023. It's not the highest yield available, but it's among the best high-interest savings accounts.
- Intuitive mobile interface: Apple excels in delivering easy-to-use products and the Apple Savings account comes with a simple dashboard where you can easily track your balance and earnings.
- Unlimited Daily Cash: There's no cap on your Daily Cash earnings, enabling you to reach your savings goals faster.
- No fees: Like Apple Card, the new Savings account doesn't incur fees, which can often offset your earnings.
Explore some top high-yield savings accounts here now and start earning more interest.
Cons of the Apple high-yield savings account
While this high-yield savings account can benefit you in several ways, it's not without its drawbacks. Consider the following downsides before deciding to sign up for the Apple Savings account:
- Apple Card requirement: You must hold an Apple Card to be eligible for the Apple Savings account, essentially excluding Android users.
- Potentially inconvenient: Like many other high-yield savings accounts operated by online banks, you don't have access to a physical branch office or ATM to withdraw money from your account. Instead, you must transfer the money from your Goldman Sachs account, which could take a few days to clear.
- Lower maximum balance limit: Apple allows you to contribute up to $250,000 into your savings account, which, although substantial, is less than other competitors. For example, Marcus by Goldman Sachs allows deposits of up to $1 million.
Unique benefits of the Apple high-yield savings account
If you have an iPhone and are used to paying for purchases by scanning the Apple Card on your smartphone, you may find it convenient to integrate the Apple Savings account into your finances. That way, the Daily Cash you earn from your Apple Card can automatically transfer to your savings account without having to transfer points or funds from another cash back card.
The biggest drawback of the account is that you must carry an Apple Card. While you may prefer the Apple Card for its 2% Daily Cash cash back on purchases, the card may not be ideal for what you want out of your credit card, particularly if you value travel rewards.
The bottom line
Apple's new high-yield savings account delivers high APYs and convenient perks, especially if you already use an Apple Card. While its rate isn't the highest on the market, it's on the upper end. Keep in mind, many HYSAs that offer higher rates also come with fees that can cut into your earnings, while the Apple Savings account is free.
Still, if you're looking for better rates, you have other options worth considering. As with any financial product, it's always wise to shop and compare multiple options to determine which high-yield savings account best aligns with your goals. Get started here now!
