Customers find the Apple Card savings account increasingly alluring as its interest rate keeps rising. Apple Cardholders received notice from Apple on Friday that interest is now being paid on their savings account balance at a rate of 4.5%, which is the second increase this month.
From 4.25% in December to 4.35% early in January to 4.5% at this point, the savings rate has changed. These increases make the account far more competitive with the larger market of high-yield savings accounts, especially since there are no fees associated with it.
After a year in the account with a $1000 balance and a 4.5% interest rate, your money will increase to $1045. Apple has only seen an uptick in the savings rate after introducing savings. Naturally, this cannot be assured to be continued.
The Federal Reserve’s decisions and the overall health of the economy will determine whether interest rates increase or decrease. Users with Apple Card savings accounts can transfer their funds at any moment to another location. The savings account is exclusively available in the US, much like all other Apple Card products.
In the background, Apple collaborates with Goldman Sachs, which serves as the partnering bank for the savings account and Apple Card. But Goldman Sachs wants to get out of the consumer lending industry. Although Apple and Goldman Sachs have a contract that expires in 2029, Apple is reportedly proactive and is developing a plan to move away from Goldman Sachs in the coming year or two.
Potential Customers with Apple Card savings accounts don’t need to worry about the drama surrounding backroom transactions, though. No matter what happens, your money is safe. Remember that account holders are covered by the Federal Deposit Insurance Corporation for up to $250,000 per depositor for added peace of mind.
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