Apple and Goldman Sachs are set to lower the interest rate offered by the Apple Card Savings Account from 4.5% to 4.4% on April 3. This change was first spotted by MacRumors, based on data on Apple’s backend. The account started with a 4.15% annual percentage yield (APY) and had seen three increments to reach 4.5%. Even with the decrease to 4.4%, the APY is still relatively competitive.
The Apple Card Savings Account is available exclusively to Apple Card users. As users earn Daily Cash rewards with their Apple Card, they can choose to have that money automatically deposited into the high-yield savings account in the Wallet app. In addition to depositing Daily Cash directly into the savings account, Apple Card users can also deposit additional money using a linked bank account or their Apple Cash balance. Interest is compounded daily and paid at the end of the month.
The impact of this interest rate drop on the savings account is that the returns on savings accounts will dwindle, impacting the growth potential of savings. However, even with a decrease to 4.4%, the APY of the Apple Card Savings Account is still relatively competitive. It’s worth noting that the maximum balance allowed in the account is now $1,000,000, up from a previous limit of $250,000.
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