The new account requires no minimum deposit or balance, Apple said, and users can set up an account from the Wallet app on their iPhones. The savings account is launched through Goldman Sachs.
The company said in a press release that all Daily Cash rewards earned through the Apple Card will automatically be deposited to the savings account. Daily Cash is the Apple Card reward programme that offers up to 3% back on purchases. Users can change where their Daily Cash is deposited at any time, and can also add funds from their bank account to build on their earnings.
The national average APY on savings accounts is just 0.35%, according to the Federal Deposit Insurance Corporation, so Apple’s 4.15% APY is high in comparison. But competing savings accounts offered by large credit unions, online banks, and brick-and-mortar banks can also offer customers a significant APY.
CIT Bank offers a savings account with a 4.75% APY when customers deposit a minimum balance of USD 5,000. Marcus by Goldman Sachs has a 3.9% APY with no minimum balance or monthly fees. Capital One’s savings account has no minimum balance, and users can earn a 3.5% APY. Vio Bank offers a savings account with a 4.77% APY with no minimum balance.
Apple Card savings users can manage their accounts through a dashboard that will appear in the Wallet app, where they can track their interest and their account balance or withdraw funds.
In March 2023, Apple has announced the launch of Apple Pay Later looking to enable US-based users to split purchases into four payments over six weeks, with no interest or fees applied. Consumers can apply for Apple Pay Later loans ranging from USD 50 to USD 1,000, which can then be used for both online and in-app purchases carried out on iPhone and iPad with merchants that accept Apple Pay.
When getting started with Apple Pay Later, users can apply for a loan within the Wallet without having their credit impacted, following which they are set to be prompted to enter the amount they wish to borrow and agree to the Apple Pay Later terms. During the application process, a soft credit pull will take place to ensure that the user has a good financial position prior to taking on the loan. Once the user is approved, the Pay Later option will be visible when selecting Apple Pay at checkout, and they will have the option to leverage the service to carry out a purchase. Following the finalised set-up of Apple Pay Later, users are also enabled to apply for a loan directly within the checkout flow whenever making a purchase.
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