Apple today increased the annual yield (APY) on the AppleCard savings account to 4.35%. This is the second time in as many months that the savings account APY has been increased, after Apple increased it from 4.15% to 4.25% in December.
Apple's interest rates are now the same as those on popular high-yield savings accounts offered by American Express and Discover, but there are a few other options that offer even higher APYs, ranging from 4.5% to as low as 5% in the U.S., such as Goldman Sachs Group Inc.'s Marcus and Wealthfront.
Apple launched a high-yield savings account in April 2023 in partnership with Goldman Sachs Group. The account can be opened and managed in the Wallet App on iPhone and has no fees, minimum deposits and minimum balance requirements. Users must hold an AppleCard, be a U.S. resident, and be over 18 years old to open an account.
The account allows AppleCard holders to earn interest on their daily cash back balance, as well as on personal funds deposited through a linked bank account or AppleCash balance. The maximum balance allowed is $250,000, and balances are fully insured by the Federal Deposit Insurance Corporation.
The interest rate hike comes as Goldman Sachs Group Inc. is looking to end its Apple Card partnership as part of a broader plan to exit the consumer credit business, The Wall Street Journal reported in November. The partnership is expected to end in the next year or so, but it's unclear how that will impact Apple Card's future.