Apr 02, 2024
An undated image showing an Apple card. — Unsplash
After receiving multiple interest rate hikes since its inception last year, Apple Card's high-yield savings account is on the verge of receiving an interest rate drop.
With the updated rates slated to be implemented by April 3 (tomorrow), annual percentage yield (APY) on Apple Card savings account will be dropped to 4.4%, according to data on Apple's backend, as reported by by MacRumors. Meanwhile, the APY being currently offered is 4.5%.
While this move will surely shake those associated, the new interest rates will remain market competitive, as interest rate of rival high-yield savings accounts are found to stay between 4.25% and 5.25%.
Read more: Apple Card savings account interest rate raised to 4.5%
Prior to the latest dip in the rates, Apple Card account holders were receiving 4.5%, which was increased from the 4.34% savings rate in January this year.
After its inaugural introduction last year, the Apple Card offered an APY of 4.15%. Subsequently, the rate increased three times, first to 4.25%, then to 4.35%, and finally to 4.5%.
In April last year, Apple partnered with Goldman Sachs to launch its savings account, which can be managed in the Wallet app on the iPhone. The account has no fees, no minimum deposits, and no minimum balance requirements. All that's required to open an account is that you must have an Apple Card, be a US citizen, and be at least 18 years old.
The account allows Apple Card holders to earn interest on their Daily Cash cashback balance, as well as on funds deposited via a linked bank account or an Apple Cash balance. The maximum balance allowed is now $1,000,000, increased from the previous limit of $250,000.
To open a savings account in the Wallet app, tap on your Apple Card, tap on the circle with three dots at the top of the screen, tap Daily Cash, and select Set Up Savings.
Moreover, rumours also hint at a termination of consumer lending partnership between Goldman Sachs and Apple, but it's unclear if it would have any potential impact on Apple Card holders.
