Apple Unveils Savings Account for Apple Card Users

Apple has debuted a Goldman Sachs savings account for Apple Card users.

The account offers users a “high-yield APY of 4.15 percent — a rate that’s more than 10 times the national average,” the company said in its Monday (April 17) announcement.

According to the news release, the account features no fees, minimum deposits or minimum balance requirements, and can be managed directly from Apple’s Wallet.

“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,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in the release.

“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.”

After a user sets up their account, future Daily Cash that they earn is automatically deposited into their savings.

“To build on their savings even further, users can deposit additional funds into their Savings account through a linked bank account, or from their Apple Cash balance,” Apple said.

Apple first announced the savings account in October, saying the program would launch in the months ahead.

The account is launching as a number of America’s biggest banks are preparing their own Apple Pay/Google Pay Rival.

The banks — including Wells Fargo, JPMorgan Chase and Bank of America — are developing a product to let consumers make online purchases with a wallet tied to their Visa or Mastercard debit or credit cards.

As PYMNTS wrote in January, the wallet will be managed by Early Warning Services (EWS), which also runs the money-transfer service Zelle.

A report by The Wall Street Journal — citing unnamed sources — said the banks were launching the wallet to compete with third-party offerings like Apple Pay as banks worry about declining customer relationships.

Meanwhile, research by PYMNTS finds that consumers are increasingly dipping into their 401(k) accounts and emergency funds to cover their bills.

As unexpected expenses threaten consumers’ savings, 27% of people surveyed by PYMNTS say they have drawn from savings or investments to pay down their credit cards.

“Clearly, the current situation is unsustainable,” we wrote last month. “However, while the economy gets sorted, there is also a clear need for consumers who are struggling to get all the assistance they can.”