Apple lowers interest rate for Apple Card Savings once again

Apple is planning to cut the interest rate of its Apple Card high-yield savings account. The new rate is set to go live on Friday, October 11, and this is not the first time that Apple has cut the interest rate.

Now, the Apple Card savings account's annual percentage yield (APY) will drop to 4.10 percent instead of 4.25 percent. The annual percentage yield is basically the interest rate earned on an investment in one year. This cut marks the third cut Apple made in 2024, with the second being recently made.

Back towards the end of September, Apple lowered the APY from 4.4 percent to 4.25 percent. Before that, in April, the rates dropped from 4.5 percent to 4.4 percent.

Now at 4.10 percent, the Apple savings account APY will be below the 4.15 APY that it initially launched with, back in April of last year. Of course, savings account interest rates change when changes are made by the Federal Reserve. When rates are lowered, banks cut their APYs as well.

Federal Reserve policymakers cut the rate by 50 basis points in September, and now they're suggesting that more cuts are coming.

It's not only Apple who's cutting APYs though. Several other high-yield savings accounts from companies like Discover, American Express, and Capital One are now also matching the 4.10 APY.

Apple's savings accounts are offered to users by Apple in a partnership with Goldman Sachs. The account is available for people with an Apple Card and can be managed from the iPhone Wallet app just like the Apple Card. The savings account is created to allow you to earn interest on your Daily Cash balance, as well as funds transferred from bank accounts or Apple Cash balances.

Earlier this month, there was also a decrease in the Apple Card APR range (Annual Percentage Rate, the yearly interest you pay if you carry a balance on your credit card), and it now is at 18.74 percent to 28.99 percent, down from 19.24 percent to 29.29 percent.

I personally think that credit cards and savings could be a tricky business, and have remained very old-fashioned in my ways so far, not opening a savings account or using a credit card. It seems though that even with these changes, Apple Savings remains competitive.