Apple’s Bold Leap into High-Yield Savings — Is Your Money Ready for a Tech Makeover?
In a surprising move, Apple has recently ventured into the world of personal finance with the launch of its high-yield savings account, boasting an impressive 4.15% APY. As a tech giant renowned for its innovative gadgets and seamless user experience, the question arises: Is it worth entrusting your money to the same company responsible for your tech devices? This article aims to explore the ins and outs of the Apple high-yield savings account, based on a firsthand experience, to help you decide if it’s the right choice for you.
Growing Personal Finance Business:
Apple’s foray into personal finance started with the introduction of the Apple Card in August 2019, showcasing the company’s desire to expand its services beyond hardware. The seamless “it just works” mentality associated with Apple products is now being extended to the realm of finance. In October 2022, Apple announced a partnership with Goldman Sachs to launch a high-yield savings account, which is now finally available to users.
Eligibility and Application Process:
The Apple high-yield savings account, simply called Savings, is exclusively available to Apple Card holders, i.e., iPhone owners. The application process is hidden within the Wallet app but can be completed in less than three minutes once found. Users must navigate through the “…” menu on the Apple Card entry, tap “Daily Cash,” and then tap “Apple Card Savings Account” to access the application. The process involves a few button taps and entering your social security number.
Funding Your Savings Account:
There are two primary sources of funds for your savings account. First, the 1% to 3% earned as Daily Cash on Apple Card purchases can be automatically transferred into the account, instead of remaining idle in your Apple Cash balance. Secondly, users can transfer money in and out of the account directly to a linked bank account.
Comparing Savings Rates:
Apple’s high-yield savings account offers a competitive 4.15% APY, which is higher than most traditional bank accounts. Online banks tend to offer rates between 4.4% and 5%, while our top pick for the best savings account, Capital One 360 Performance Savings, offers a 3.5% APY based on factors like convenience and low fees. Apple’s account aims to create a closed loop, where users spend with their Apple Card (preferably via Apple Pay), transfer rewards cash to the savings account, and watch their balance grow.
Is it Worth it?
For users who don’t heavily rely on their Apple Card for spending, the cash accumulated may be minimal. However, it makes sense to allow the balance to sit in the savings account and earn interest rather than none. As for users with a primary savings account elsewhere, the decision to switch to Apple’s savings account depends on the potential hassle and payoff. The increased earnings on a substantial savings balance might not be significant enough to warrant the change.
Conclusion:
For Apple Card holders who don’t currently have a savings account, the Apple high-yield savings account is an easy, convenient option to consider. However, for users with existing savings accounts, it’s essential to weigh the benefits and potential inconveniences before making the switch. Ultimately, Apple’s savings account is an innovative step into the world of personal finance, providing a seamless and tech-savvy experience for its users.
Is sticking with a conventional no-yield bank account worth it? Share your opinions with me!
Images source: How to set up Apple Savings account on iPhone (appleinsider.com)
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