The Apple Card Savings account offers a competitive rate, but these five banks could be a better fit for you.
Apple has taken a big bite out of the deposit accounts space. Earlier this spring, the tech behemoth announced its new Apple Card Savings account, which features an impressive 4.15% APY. But the competition is stiff from banks offering savings accounts with great rates that can give Apple a run for your money.
Just within its first week, Apple Card Savings reportedly raked in nearly $1 billion in deposits, and opened approximately 240,000 accounts, according to Forbes. Apple Card Savings offers a competitive savings rate, but with the Federal Reserve's latest 25-basis-point rate hike on May 3, APYs on high-yield savings accounts at banks and credit unions may move closer to 5% in the coming weeks.
And, although Apple's savings APY and terms are competitive, the catch is that you must have an Apple Card and an iPhone that runs iOS 16.4 or later. (Sorry, Android tribe, you have to sit this one out.)
Here's what you need to know about the best return high-yield savings accounts available on the market right now, and where Apple's new product stacks up against them.
If you have the Apple Card, you can set up and manage your Apple Card Savings account from your Wallet app. Once you do that, you can automatically have your Daily Cash sent directly to your savings account, where it will start earning interest.
Convenience is what sets the Apple Card Savings account apart. We like that on top of automatically transferring your rewards to your savings account, you can still regularly contribute more money to grow your savings from an external bank account. What's more, you can change the destination of your rewards at any time. For instance, you may choose to move some of the rewards to your Apple Cash card for a peer-to-peer transaction. And, the "fee-averse" among us will appreciate that this savings account has no fees or minimum deposit or balance requirements. Plus, it's backed by the Federal Deposit Insurance Corporation.
But there are some restrictions. You must have an Apple Card and use an iPhone with iOS 16.4 or later to get the Apple Card Savings account. And if you don't meet these qualifications, don't worry. You can still grow your money in other high-yield savings accounts, some with even better rates than the Apple Card Savings account.
|UFB Direct||4.81%||Mobile banking app, auto savings transfer|
|Bask Bank||4.75%||American Airline miles rewards tied to savings|
|TAB Bank||4.40%||Mobile and online banking tools|
|SoFi||1.20% to 4.20%||Competitive rates for checking and savings|
|Apple||4.15%||Convenient for Apple card holders|
|Synchrony Bank||4.15%||Up to $5 in ATM fee refunds per month|
APYs as of May 5, 2023.
Comparing apples to Apple, here are a few high-yield savings accounts that currently have higher APYs. And, like Apple's account, none of these savings accounts have minimum balance or deposit requirements.
UFB Premier Savings has the highest APY on our list. We like that this yield applies to all balances -- some banks reserve top APYs for higher balances. Unlike other high-yield savings accounts, we like that UFB Direct's savings account comes with a free ATM card and unlimited free transfers between accounts. However, there's a limit of six withdrawals a month and after that, there's a $10 excessive transaction fee. That doesn't apply to ATM cards, though. Like all banks on this list, UFB Direct doesn't offer physical branches, but you can handle deposits and transfers through its mobile banking app.
If you're an American Airlines frequent flyer, you may like the additional savings option that sets Bask apart. Bask Bank is an online-only bank that offers two savings accounts. The Bask Mileage Savings Account offers two AAdvantage miles for every dollar saved. Its other account, the Bask Interest Savings Account lets you earn one of the highest APYs on our list.
Bask reserves the right to close your account if it sits unfunded for 60 days. It allows six withdrawals per month from your account, however it doesn't offer debit or ATM cards.
We like that TAB Bank's high-yield savings account is straightforward with a high APY of 4.40%. Because TAB Bank is an online-only bank, we also like that you can receive mobile alerts and text messages about withdrawals when your account falls below a certain limit. Another benefit: TAB has extended customer service hours, including Saturdays, by calling 800-355-3063.
The SoFi Checking and High-Yield Savings Account are combined into one while offering a sizable APY on your balance. It's a solid pick if you want to keep all of your money in one place while earning interest on both accounts. Members with direct deposit will earn up to 4.20% APY on a savings account; without direct deposit, the savings account APY drops to 1.20%.
Currently, SoFi is offering bonuses of $50 to $250 for new accounts with qualified direct deposits until Dec. 31, 2023. Direct deposits of $1,000 to $4,999 will earn $50 and direct deposits of $5,000 and up will earn $250. The qualifying period for these bonuses lasts 30 days from the date of your first direct deposit.
You'll have fee-free access to roughly 55,000 ATMs supported by the Allpoint network. SoFi has a few other standout perks, including a budget planner, and you can automate savings with Roundups. Each purchase is rounded to the nearest dollar, and the change is moved to your savings account, where you'll earn interest. What's more, you can use Vaults to separate your savings goals in one account.
However, there are a few drawbacks. It doesn't provide any reimbursement for non-network ATM fees from other banks. And, SoFi is an online-only bank, so you won't have access to physical branches, but you can manage your account via the SoFi app or online.
Read our review of SoFi.
Synchrony's High-Yield Savings account is straightforward with no frills. Its high-yield savings account offers ATM card access, and if you have Diamond status as a part of Synchrony's Perks Rewards program, you'll have unlimited ATM fee reimbursements for out-of-network ATMs. Otherwise, it's up to $5 per cycle.
But you're limited to six withdrawals per month. There are no listed fees for surpassing the limit, but Synchrony can close your account if the maximum number of withdrawals is repeatedly exceeded.
Read our review of Synchrony Bank.
Just because you have an iPhone doesn't mean Apple's high-yield savings account is the best fit for your money. To decide if the Apple Card Savings account is right for you, first, consider your saving and spending habits. If you have an Apple Card but don't use it frequently, the Apple savings account might not be the most convenient option. But if you're regularly earning Daily Cash, opening an Apple high-yield savings account can streamline your savings at a competitive APY.
But if you want to earn a higher return on your savings, we recommend comparing different savings accounts before settling on one. Start by comparing APYs and any balance requirements or fees. Most of the banks with the highest APYs are online banks, which means they may not offer physical locations. If physical branch access is important to you, consider a bank with higher-than-average savings rates and brick-and-mortar locations, such as Capital One.
The Apple Card Savings account is offered by Goldman Sachs, which is also FDIC-insured and offers another high-yield savings account, Marcus by Goldman Sachs. While the Apple Card Savings offers a 4.15% APY, Marcus has a slightly lower APY of 3.90%.
You won't have to worry about minimum deposit, balance or monthly fees, and you'll have 24/7 customer support. Marcus, however, doesn't accept cash deposits, so you must be willing to handle all transactions digitally, just like Apple Card Savings.
The new Apple Card Savings account has burst on the scene to plenty of fanfare. While the Apple Card Savings is making a splash with its competitive rate and a top-notch digital platform, as we've come to expect from Apple, there are more competitive rate options available.
If you have an iPhone, the Apple Card and take advantage of Daily Cash rewards, an Apple Card Savings account can help you maximize your rewards. But if you're an Android user or want to maximize your money's earning potential, a savings account with a better rate and variety of deposit accounts may serve you better.