Why Apple's savings account may be worth it for you (and why it may not be)

Last month Apple announced a new high-yield savings account for its users. The news was greeted warmly, with Forbes reporting that nearly $1 billion in deposits were made in just the first four days after the account was made available. It's easy to understand why so many people flocked to the offering.

High-yield savings accounts come with exponentially higher interest rates than regular accounts. Apple's new addition is no exception. The Apple savings account has an attractive 4.15% annual percentage yield (APY). And it isn't saddled with any burdensome maintenance fees or minimum balance requirements, either, making it a great way to grow your savings now.

That said, is the Apple savings account worth it for you now? Or are you better off putting your money elsewhere? That's what we will discuss below.

Start exploring your high-yield savings options here to see how much more you could be earning.

Why Apple's savings account may be worth it for you

Here are two reasons why you may want to open an Apple savings account now.

It has a high APY

The 4.15% APY that Apple's savings account comes with is considerable. That's more than 10 times the average 0.40% interest rate you can get with a regular savings account, according to the FDIC. 

Here's what that means in dollars and cents. If you deposited $5,000 into a regular account, your bottom line will have grown to just $5,020 over one year, assuming you haven't made any withdrawals during that time frame. But with Apple's account, it will have grown to $5,207.50 over the same time frame. That's a big difference! And the more you deposit, the more you'll make and that interest will compound over time.

Explore high-yield savings account options now to learn more.

There are no fees to worry about

What's a great interest rate worth if it gets eaten up by costly maintenance fees and balance requirements? Fortunately, that's not a concern with the Apple savings account since it has neither. 

"The new Savings account from Goldman Sachs builds upon the financial health benefits that Apple Card already offers, with absolutely no fees, Daily Cash on every purchase, and tools that encourage users to pay less Apple Card interest — all while offering the privacy and security users expect from Apple," Apple said when they announced the account.

Why Apple's savings account may not be worth it for you

Here are two reasons why you may want to look for an alternative to the Apple savings account. 

You may be able to find a higher interest rate elsewhere

If interest rate is the top consideration for you then you should strongly consider skipping the Apple savings account and looking elsewhere. There are multiple savings accounts that offer upward of 4.5% APY right now, many of which also comes free of fees. 

CIT Bank's Platinum Savings account, for example, has a 4.85% APY that could be better for depositors. To secure that APY, you'll need to maintain a $5,000 balance (if not, the APY drops to just 0.25%). But if the interest rate is the number one consideration for you that may not be a dealbreaker. Using that $5,000 deposit as a barometer, you'd make around $35 more at the end of the year ($5,242.50 - $5,207.50) than if you used the Apple account. 

Do your research and review all of your options. The Apple savings account is good but you can make more money elsewhere. 

You need to be an Apple user

This may be the most obvious, but still important, downside to using the Apple savings account. To get to the Apple savings account you'll need to have an Apple card.

"If you have Apple Card Family, only account owners and co-owners can set up Savings accounts," Apple says. "Each Savings account holder will only be able to see their own account balance and details in Wallet."

According to Apple, to open and maintain an account you'll need to:

• Be an owner or co-owner of an active Apple Card account, and add Apple Card to your iPhone.
• Update to iOS 16.4 or later.
  
• Be at least 18 years or older.
  
• Have a social security number or individual taxpayer identification number.
  
• Be a U.S. resident with a valid, physical U.S. address.
  
• Set up two-factor authentication for your Apple ID.
  

For the millions of current Apple users this may not be a dealbreaker (chances are, if you're not using your current bank, you'll probably be opening a new account with one of the other high-interest lenders anyway). But if you're not an Apple user (or are and just don't like the idea of turning your phone into a mobile banking device) it's worth looking elsewhere for your savings account needs. 

The bottom line

Apple's new savings account comes with an attractive APY and no fees or balance requirements, making it a top option for those looking to grow their savings in today's high-rate environment. That said, it may not be worth it for everyone. If the interest rate is your main consideration you can easily find an account elsewhere with a higher APY. And if you're not an Apple user you'll need to become one to take advantage of this account.

Learn more about your high-yield savings account options here now.