Apple is offering its credit card holders a new way to increase their savings with a new high-yield savings account.
The company announced that all Apple Card holders will be eligible to open a high-yield savings account with Goldman Sachs – which also comes with a 4.15% annual interest rate. That rate is more than 10 times the national average. According to the Federal Deposit Insurance Corporation (FDIC), traditional savings accounts yield a 0.37% annual interest rate.
“Savings helps our users get even more value out of their favorite Apple Card benefit – Daily Cash – while providing them with an easy way to save money every day,” said Jennifer Bailey, vice president of Apple Pay and Apple Wallet. “Our goal is to build tools that help users lead healthier financial lives, and building savings into Apple Card in Wallet enables them to spend, send, and save daily cash directly and seamlessly – all from one place.”
No fees, no minimum balance requirements
For current Apple Card holders, the option to open a savings account with Apple and Goldman Sachs will appear in the Wallet app. Once you click on your Apple Card, and then get into your Daily Cash, you’ll see the option to create an account.
When the account is set up, all Daily Cash earned from purchases with your Apple Card will be automatically deposited into your new savings account. Users aren’t required to keep a minimum balance in the account, there are no fees associated with the account or any transactions, and there are no minimum deposit requirements. However, accounts do have a maximum balance – $250,000.
While Daily Cash will be one source of deposits in the savings account, users can also add funds to their accounts by linking other bank accounts or transferring their Apple Cash to their savings accounts. The only banking functions that are unavailable with the Apple savings account are wire transfers and cash deposits.
Account holders will be able to withdraw the funds from their savings accounts and deposit them into other bank accounts or into their Apple Cash cards. However, you are only able to transfer up to $20,000 from your account every seven days.
Apple Card holders earn Daily Cash on every purchase made with their card, and there is no limit to how much Daily Cash you can earn.