Apple Card Savings Faces First Interest Decrease, Updates Limits

In an unprecedented move, the Apple Card savings account will lower its interest rate to 4.4% APY from April 3 while increasing the balance limit to $1 million, enhancing its appeal to high-value savers.

Apple Card's Savings Account Adjusts to 4.4% APY, Maintains Market Competitiveness

The Apple Card savings account's annual percentage yield (APY) will be reduced to 4.4% beginning April 3, according to data discovered on Apple's backend by MacRumors. The account currently yields 4.5% APY.

The 4.4% will remain competitive compared to many other popular high-yield savings accounts, which typically offer rates ranging from 4.25% to 5.25%.

When the Apple Card's savings account became available, it provided an APY of 4.15%. The rate rose three times: first to 4.25%, then 4.35%, and finally to 4.5%. The drop to 4.4% will mark the first time the rate has fallen.

In April 2023, Apple partnered with Goldman Sachs to launch its savings account. The account can be opened and managed using the iPhone's Wallet app, and there are no fees, minimum deposits, or balance requirements. To open an account, you must have an Apple Card, be a resident of the United States, and be over 18.

The account allows Apple Card holders to earn interest on their Daily Cash cashback balance and funds deposited through a linked bank account or an Apple Cash balance. The maximum balance is now $1,000,000, up from the previous $250,000.

To create a savings account in the Wallet app, tap your Apple Card, then the circle with three dots at the top of the screen, Daily Cash, and Set Up Savings.

Goldman Sachs reportedly plans to end its consumer lending partnership with Apple, but it is still unclear how this will affect Apple cardholders.

Apple Card Savings Account Raises Balance Cap to $1 Million

According to last month's report, Goldman Sachs has recently made a significant enhancement to the Apple Card savings account. As of March 1, the balance limit has been raised to a whopping $1 million, which could benefit many cardholders.

According to the updated Apple Card cardholder agreement, effective March 1:

"The maximum balance limit for your Account is $1,000,000, based on your Current Balance (including interest and Daily Cash deposits)."

The account's previous balance limit was $250,000, the maximum amount allowed by the United States. The Federal Deposit Insurance Corporation (FDIC) would provide coverage if Goldman Sachs became insolvent. The FDIC would not cover any deposits over $250,000, up to the new $1 million limit, in case of a bank failure.

Some other high-yield savings accounts in the U.S. offer balance limits above $250,000. For example, Goldman Sachs' other high-yield savings account, Marcus, allows a maximum balance of $1 million per account, up to $3 million.

Opening and managing the Apple-Goldman Sachs savings account is a breeze. All you need is an Apple Card to be a United States resident over 18. The iPhone's Wallet app allows users to access and control their accounts easily. What is the best part? There are no fees, minimum deposits, or balance requirements.

The account allows Apple Card holders to earn interest on their Daily Cash cashback balance and funds deposited through a linked bank account or an Apple Cash balance. Apple's savings account now has a 4.5% annual percentage yield, up from 4.4% in late January.

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