Is Apple's High-Yield Savings Account Worth It? See How It Compares

Apple this week unveiled its long-anticipated savings feature for Apple Card holders. You can open a high-yield savings account for Daily Cash rewards from the Apple Card in the Wallet app.

Apple Card Savings accounts will be provided through Goldman Sachs and will allow you to earn interest at an annual percentage yield, or APY, of 4.15%. This rate is fairly competitive, though some savings accounts are offering rates closer to 5.00% APY.

"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, Apple's vice president of Apple Pay, in a statement.

As well as your Apple Card Daily Cash, you'll be able to deposit savings into the high-yield account through a linked bank account or from your Apple Cash balance. You can also send money from the Apple Card Savings account to your linked bank account with no fees. 

It requires your iPhone to run iOS 16.4 or later.

The new option is Apple's latest attempt to make its credit card, which it launched in 2019 via a partnership with Mastercard and Goldman Sachs, more appealing to consumers. The tech giant has sought to set the Apple Card apart from other branded credit cards by offering tight integration with the iPhone and Apple's Apple Pay wireless payments service. The company also offers 3% cash back on all Apple purchases, and few fees. 

Last month, the company launched Apple Pay Later in the US. The buy now, pay later service lets iPhone users split Apple Pay purchases into four equal payments spread over six weeks.

Read more: Apple's New High-Yield Savings Account Isn't the Only One With a Great Interest Rate

How Apple's high-yield savings account stacks up against other banks

There's a lot to like about Apple's new savings account. Like other high-yield savings accounts we track at CNET, Apple doesn't require a minimum deposit or balance. But its convenient savings features for account holders are particularly striking.

We like that the Daily Cash you earn on purchases is automatically deposited into your savings account to earn interest. And you can still deposit funds to your account to grow your savings even more. Just like other online savings accounts, you'll have the flexibility to transfer your savings to a linked bank account when you want to withdraw your money. 

But, while Apple's 4.15% savings rate is competitive -- it's 10 times higher than the national average of 0.37% -- you can earn slightly more with other high-yield savings accounts. The average APY you can earn with one of the best high-yield savings accounts CNET tracks is 4.81%, which is slightly higher than Apple's savings rate. Other banks like UFB, Bask Savings and Bread Savings, to name a few, have rates inching closer to 5.00% APY. 

Rates as of April 17, 2023. 

Savings account rates fluctuate for many reasons, but have recently increased to the highest levels we've seen in years as the Federal Reserve raised interest rates in 2022 and earlier this year to combat high inflation. With the next Federal Reserve meeting happening on May 2-3, experts are predicting savings rates could climb even higher in the coming months. 

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