Is Apples high-yield savings account worth the hype?

Publish date: 2024-07-30

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If you’re looking for a place to stash your savings, Apple may not be the first place that comes to mind. But Apple’s high-yield savings account, administered by Goldman Sachs, has a lot going for it.

Apple users can earn 4.15% APY on their savings — more than seven times the national average interest rate for savings accounts.

Apple’s savings account allows Apple Card users to maximize their Daily Cash, the money earned through Apple’s cash back program. It allows them to grow their money in a way that wouldn’t be possible otherwise.

Before deciding if this account is right for you, you should understand its key features. Here’s how Apple Savings compares to other high-yield savings accounts.

Key features of Apple’s savings account 

Only Apple Card users can access Apple’s savings account, through their Apple Wallet.

The biggest advantage of Apple’s savings account is this integration with the Apple Card and its Daily Cash rewards program. You can earn 3% unlimited daily cash back on every purchase, which goes right into your Apple Savings account. You can also transfer the cash rewards elsewhere.

The account has no fees, minimum balance requirements, or minimum deposits. Like other bank accounts, Apple Savings is covered by FDIC insurance up to the maximum limit.

Account activity and balance information is accessible via the Apple Wallet app on the Savings dashboard. There’s an option to link an external account to your Apple Wallet and add funds to your account instantly. If you need to withdraw funds, you can start a transfer from your Apple Savings account to a linked bank account or your Apple Card.

How does Apple’s savings account compare to other savings accounts? 

Apple’s savings account may be an attractive option, but is it the best for you? Here’s how it stacks up to the competition.

Accessibility

You can’t access this savings account if you don’t have an Apple Card. Luckily, there are several other high-yield savings accounts on the market without this restriction.

If you’re an Apple Card user, this savings account is very accessible for you. You can easily access and manage your savings account from your Apple devices. You can instantly transfer funds and automatically sync your Daily Cash rewards with your account.

Interest rates

While Apple’s savings account offers a solid interest rate, there may be better options elsewhere. Many online banks offer high-yield savings accounts with interest rates over 5%.

But a lower interest rate may not matter. That’s because you don’t have to pay a monthly maintenance fee or meet stringent requirements to access the 4.15% APY. Some other banks have a tiered APY earnings system, meaning you must deposit a certain amount to earn the highest rate. With Apple, you earn the same return whether your balance is $50 or $50,000.

Fees

Apple Savings beats out some of the competition due to its no-fee structure. Unlike other savings accounts, Apple does not charge monthly maintenance fees or require a minimum balance. This allows you to maximize your savings without worrying about unnecessary charges eating into your earnings. 

User experience

Apple’s commitment to user-friendly design and innovation shines through in its banking services. You can access your account, make deposits, and track your progress toward your financial goals using the familiar Apple ecosystem. The user interface is designed to be intuitive and visually appealing.

Plus, Daily Cash is automatically deposited once you set up your account, and you can make transfers from linked external accounts in minutes.

Are there better alternatives to Apple’s savings account?

There have been recent reports of Apple customers struggling to withdraw their savings. This, coupled with the lower APY, could make the Apple Savings account not worth it. 

“Access to your cash is paramount, and I wouldn’t want to use a savings account where I had trouble accessing my savings,” says Julian Morris, certified financial planner and founder of Chief Wealth Concierge. 

If you don’t have an Apple Card or aren’t planning on opening one, you’ll need to explore other options. The good news is there are plenty of high-yield savings and money market accounts with attractive interest rates. Here are a few other banks to consider: 

  • Capital One Bank: offers a high-yield savings account with competitive interest rates. They have a user-friendly mobile app and website, making it easy to manage your savings on the go. Capital One also has a network of physical branches and ATMs for in-person banking needs.
  • Chime: an online bank that offers a high-yield savings account with no minimum balance requirements or monthly fees. They have a sleek mobile app with features like automatic savings transfers and round-up options to boost your savings effortlessly. Chime also offers early direct deposit and a fee-free ATM network.
  • Varo Bank: an online bank that provides a high-yield savings account with no monthly fees. They offer a unique “Save Your Pay” feature that automatically separates a percentage of your direct deposit into savings. Varo Bank also has a fee-free ATM network and a user-friendly mobile app.
  • SoFi: an online bank that offers a cash management account with a high-yield savings feature. They provide competitive interest rates and additional perks like fee-free ATM access. SoFi also offers budgeting tools and the ability to set financial goals within their mobile app.

    • The bottom line 

    This savings account could be a solid option if you’re an avid Apple user. The 4.15% APY makes it hard to overlook, and you can earn sizable returns without worrying about fees.

    But there are drawbacks to consider. You may earn a greater return at another bank. And if you need to pull cash from Apple’s savings account urgently, you may face delays.

    “I can’t say there’s an advantage to Apple Savings over any other high-yield savings, especially with the reported difficulty of withdrawing funds,” Morris says.

    Growing your money in a high-yield savings account can be a smart financial move. It’s essential to weigh the pros and cons of Apple’s savings account and explore your other options to find the best fit.

    Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.

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