However, it's unclear how much of an interest rate Apple will be providing.
Your Apple Card now functions more like a full-service banking product. You can soon grow your money with Apple's new "high-yield" savings account from Goldman Sachs. You can transfer money from an associated bank account or your Apple Cash balance, or you can choose to have your card's Daily Cash automatically deposited if you like. There are no fees, minimum deposit amounts, or limitations for minimum balances when withdrawing.
Americans will be able to access the savings account in the "coming months," according to Apple. It goes without saying that this could have a significant impact on your decision to join up. We have inquired with the business regarding the precise yield rate and will let you know if we receive a response.
This should sound fairly familiar if it does. There is already a "Marcus" savings account from Goldman Sachs that you can start quickly online and connect to other banks. It is designed for mobile users with a specialized app, boasts a respectable 2.15 percent annual interest, and has no fees or minimum contributions. The daily incentive deposits and, of course, close interaction with iPhones and other Apple goods are what make Apple's service unique.
The company's response to Google's now-defunct Plex banking program isn't exactly the Apple Card savings account, though. Apple is offering a savings account specifically for cardholders, whereas that was ultimately an effort to improve banking for businesses without their own apps. This is an incentive to use your card and stay within the Apple ecosystem.
Apple Card gives 2% Daily Cash on all Apple Pay purchases and 3% Daily Cash at specific merchants, such as Apple, Uber, Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware. Users of Apple Cards who choose the savings account option would immediately be able to receive interest on their Daily Cash, allowing the amount to increase over time.
Users will be able to contribute more money to the savings account either from their Apple Cash balance or from a linked bank account. Users will also be able to withdraw money from their savings account at any time and without incurring any costs.
According to Apple Pay CEO Jennifer Bailey, "savings enables Apple Card members to expand their Daily Cash benefits over time, while also saving for the future." Savings is a second simple-to-use tool that is intended to help customers lead healthier financial lives while adding even more value to users' preferred Apple Card perk, Daily Cash.
The Apple Card, which was introduced in 2019, is only available in the United States. A physical form of Apple's credit card is available for use in establishments that do not accept contactless payments, and all management of the card can be done through the iPhone's Wallet app. For transactions made using the physical Apple Card, Daily Cash is capped at 1%.
