Apple ups the ante: Savings account now offers increased interest rate

Back in April of this year, Apple in collaboration with Goldman Sachs unveiled the Apple Card Savings Account, boasting an annual percentage yield (APY) of 4.15%. Now, several months down the line, the first increase in the interest rate has been announced.

According to 9to5Mac, customers will now enjoy a 4.25% APY, a slight bump from the 4.15% offered since the debut of the Apple Card Savings Account. Apple conveyed the news of the enhanced interest rate through a push notification sent to Apple Card Savings Account users.

Exclusively available to Apple Card users, the Apple Card Savings Account allows users to automatically deposit their Daily Cash rewards into a high-yield savings account within the Wallet app.

Apart from the automatic deposit of Daily Cash, Apple Card users have the option to add extra funds using a linked bank account or their Apple Cash balance. Interest accumulates daily and is disbursed at the end of each month.

The uptick in the interest rate is a positive development for Apple Card Savings account holders, translating to higher interest earnings on their savings.

The Apple Card, operating through the Wallet app, boasts millions of users collectively holding over $10 billion in associated savings accounts. While Apple manages the card through its app, the backend operations are handled by Goldman Sachs.

However, recent rumors have hinted at the potential conclusion of the partnership between Apple and Goldman Sachs, with Apple reportedly exploring new partnerships for its Apple Card.

Although nothing is confirmed yet, earlier reports suggested J.P. Morgan’s Chase as a potential replacement for Goldman Sachs, despite having passed on the Apple Card initially.