Apple Card savings account interest rate raised to 4.5%

4.5pc interest rate means every $1,000 in a savings account will add $45 to it one year after being held
An undated image showing an Apple card. — Unsplash
An undated image showing an Apple card. — Unsplash

Tech giant Apple has once again raised the interest rate on its Apple Card saving account on Friday, letting account holders now receive 4.5 per cent.

The iPhone maker informed the existing customer of the increased interest rate. Moreover, the savings account is only accessible to customers in the United States like other Apple Card services.

Being the second consecutive hike in the same month, the interest rate increment seems to be an attempt by the company to outshine the competitors and capture a wider customers base.

Read more: Apple Savings account interest rates raised for the first time

Before the latest upsurge in the savings rate, Apple Card account holders were receiving 4.34 pc, which was increased from the 4.25pc savings rate in December last year, as noted by 9to5Mac.

What makes certain accounts stronger in the market of high-yield savings accounts is the condition that there are no fees or regular payments associated. 4.5pc interest rate means every $1000 in a savings account will add $45 to it one year after being held. 

Since the introduction of the savings account, Apple has only raised the savings rate. However, the streak of rate hikes might break, considering that the rate is subject to change based on the Federal Reserve's actions and the overall state of the economy. Apple Card savings account users have the freedom to transfer their funds to other accounts at any time.

Although Apple collaborates with Goldman Sachs as the bank for Apple Card and the savings account, Goldman Sachs is reportedly planning to withdraw from its consumer finance operations. 

Despite having a contract with Apple until 2029, Apple is actively seeking a solution to transition away from Goldman Sachs within the next year.

Potential customers of the Apple Card savings account should not be concerned about the behind-the-scenes negotiations. Regardless of the outcome, their funds will be secure. 

Additionally, the Federal Deposit Insurance Corporation provides insurance for account holders up to $250,000 per depositor.