Soon, the Apple Card (opens in new tab) will have even more value for cardholders. Apple just announced (opens in new tab) it will be offering high-yield savings accounts from Goldman Sachs to cardholders, extending the card’s benefits even further.
Jennifer Bailey, VP of Apple Pay and Apple Wallet, says, “Savings delivers even more value to users’ favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives.”
With the Apple Card, users can earn Daily Cash on eligible purchases – 3% cash back on purchases from Apple and select other retailers (including Uber, Nike and Walgreens), 2% cash back on Apple Pay purchases and 1% cash back on everything else. Unlike most credit cards, however, Daily Cash deposits into your account every day, not just at the end of a billing cycle.
Now, cardholders can deposit their Daily Cash directly into their new high-yield savings accounts. This lets them maximize the value of their rewards, as they will accrue interest over time. A high-yield savings account is similar to a traditional savings account, except that it pays a higher-than-average annual percentage yield (APY). An APY is the amount of interest earned on an account in one year, and the average APY for traditional savings accounts is 0.17%. High-yield savings accounts have much higher APYs, however, so users will be able to earn more money.
Users can set up savings accounts in Wallet. These accounts have no fees, balance requirements or minimum deposits, in contrast to many other high-yield savings accounts (opens in new tab).
“Savings enables Apple Card users to grow their Daily Cash rewards over time, while also saving for the future,” says Bailey.
Users can also add additional funds to the savings account, either through a linked bank account or through their Apple Cash balance. Similarly, they can withdraw funds from the account through these same methods, free of charge.