Apple Is Now Offering 4.15% APR Savings Accounts: Is There a Catch?

If you have an Apple Card in your wallet, you can now add a high-yield savings account to your financial portfolio.

Apple recently announced that it will be offering 4.15% APR on savings accounts for interested Apple Card cardholders.

The tech giant, which is backed in its financial services endeavors by Goldman Sachs, is now accepting applications for its fee-free, high-yield savings accounts. But you need an Apple Card to get involved.

Let’s take a look at five things you should know to determine if this is a good fit for you.

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1. You Need to Be an Apple Card Holder

If you have an Apple product like an iPhone, iPad or Mac, you likely have received solicitation from Apple regarding its credit card.

The card, which offers at least 2% cash back on everything you purchase through Apple Pay, is a requirement for applying for this new savings account offering.

Learn More → Annual Fee: $0.00 Card Type: Cash Back Card Issuer: Goldman Sachs Card Processor: Mastercard Foreign Transaction Fee: None Rewards Program Details: 3% cash back rewards can be earned on Apple Pay purchases made directly through these brands on their websites/apps or at their stores: Apple Store or Apple.com (This includes the App Store and Apple services.) Panera Bread Uber Eats T-Mobile Exxon or Mobil Nike Walgreens 2% cash back rewards can be earned on any purchase made with Apple Pay. 1% cash back rewards can be earned on non-Apple Pay purchases everywhere else.

Is it worth applying for the Apple Card to get this savings benefit? I recently reviewed the Apple Card to help consumers decide if it’s a good fit for their wallet.

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2. There’s No Balance Minimum and No Monthly Fee

Apple promises the following:

• No application fees
• No monthly account fees
• No deposit requirements
• No minimum balance requirements

And, as we mentioned above, the Apple Card itself is a no-annual-fee credit card.

If you don’t have one already, you may see a credit score hit from the required hard inquiry on your credit report, but you won’t encounter fees in your quest to enjoy this savings APR.

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3. The Advertised APR Is Well Above the National Average

Apple debuted this savings account at 4.15% APR. These rates are always subject to change, but that’s a great offer for an account that has no minimum balance requirements and no monthly fees.

For perspective: The national average APR for a savings account was 0.24% as of April 12, 2023, according to a BankRate report.

However, it is worth noting that there are some online banks that offer rates that rival what Apple and Goldman Sachs are offering for Apple Card users.

You can compare this APR to some of Team Clark’s picks for best high-yield online savings accounts. You can also use our savings account calculator to see how much your savings will earn.

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4. Your Cash Back Earnings Land Here Automatically

If you’re an existing Apple Card user, you’re likely familiar with the “Daily Cash” program. This is the cash back earnings program that users track in real-time when spending with the card.

If you opt into the savings account they’re now offering, you can see your Daily Cash start earning the advertised APR right away.

“Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place.”

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5. There Is a Deposit Limit, but the Ceiling Is High

This savings account isn’t just for your cash back earned with the credit card.

You’re also able to make deposits via a bank account that is linked to your Apple Wallet or via an Apple Cash account.

This means you could turn this savings account into your “everyday savings account” if you’re willing to dive that deep into the Apple ecosystem for your banking.

However, it is worth noting there is a limit to which you can enjoy this APR on Apple’s fee-free savings account.

In the fine print, it states that there is a maximum balance of $250,000 per account. That aligns nicely with the FDIC insurance limit. Per the FDIC website, “the standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.”

If your account balance tops this threshold, you can expect the excess funds to be returned via check.

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Final Thoughts

Simply put, Apple wants to be your go-to online banking destination.

As users become more comfortable with online banking and digital payments, the tech giant is leveraging its partnership with Goldman Sachs to increase its offerings for everyday financial transactions.

This new no-fee, high-yield savings option is tempting.

You may find that the advertised APR is better than what you’re receiving on your savings account from your current bank or credit union.

If you’re an existing Apple Card user, this could be an easy way to increase the interest you earn on your money.

If you’re not already an Apple credit card holder, the decision is less clear. You’ll need to do an assessment of the credit cards already in your wallet to determine if adding this card is worth it for you. You’ll also need to assess your existing savings APR.

As part of money expert Clark Howard’s rules for using credit cards, we suggest that anyone who adds this — or any — credit card keep their spending balance low and pay it in full each month.

Otherwise, the interest owed on credit card debt will negate any perceived gains from the credit card rewards or savings interest.

Are you going to give this new high-yield savings option a try? We’d love to hear your thoughts in the Clark.com community.

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