Apple’s 4.35% APY High-Yield Savings Account: What to Know - NerdWallet (2024)

Apple Card users have a competitiveoption for a high-yield savings account, one that pays a 4.50% annual percentage yield. Apple announced the federally insured account — serviced by Goldman Sachs Bank — in April 2023.

The fact that Apple’s savings option is open only to Apple Card customers hasn’t seemed to hurt its popularity. In August 2023, Apple announced the account had reached more than $10 billion in deposits since its launch. To compare, only about 150 U.S. banks (out of more than 4,500) had deposits of more than $10 billion in the third quarter of 2023, according to data from the Federal Deposit Insurance Corp.

There have been some issues, however. Shortly following the April announcement, there were reports of Apple customers having difficulty withdrawing savings funds in a timely manner. More recently, there have been reports that Goldman Sachs and Apple will end their partnership within the next year or so, as Goldman aims to trim its consumer business. It’s unclear what a potential split would mean for customers. But for now, the savings account — including its attractive interest rate — is still available.

Why you'll like the Apple savings account

The account has no monthly fee or minimum balance requirement, and the APY is notable. It is much more than the average savings rate for savings accounts, which is 0.47%, according to the FDIC. You can view your savings account, including balance and interest-earned information, in the Apple Wallet app.

When the product was first announced, it had a 4.15% APY.

At 4.50% APY, an account with a $5,000 deposit will earn more than $230 in interest after one year, per the NerdWallet savings calculator. And you don’t need to start with thousands of dollars to take advantage of a high yield savings account. Say you start with $50, and deposit $50 a month for five years. According to the calculator, you will put away $3,050. With an APY of 4.50%, your money would earn you an extra $369.87, for a total savings of $3,420.87.

Of course, interest rates can change at any time, so you may not always earn a 4.50% APY. Still, this savings account is competitive with the best savings rates available today.

If you want to protect your bank balance from potential rate drops, consider opening a certificate of deposit. A CD lets you lock in today’s rates for a set time period, though you generally can’t make a withdrawal until that period ends. The best CD rates are competitive with the best savings rates.

One unique benefit that Apple savings has is its integration with the Apple Card. This is a credit card that offers a reward called Daily Cash, where you can get up to 3% cash back on purchases. Once you open an account, those funds are automatically deposited into the new high-yield savings account. (You can also opt for a different destination for Daily Cash, such as your Apple Cash account, instead.)

How to open the Apple high-yield savings account

To open the account, you will need to go to your Apple Card in your Apple Wallet app and set up Savings. According to Goldman Sachs, you’ll need to provide your Social Security number or Individual Taxpayer Identification Number to get an account. You’ll also need a U.S.-based address (including U.S. territories and U.S. jurisdictions).

Funds in this account are federally insured up to the FDIC’s insurance limits. FDIC insurance generally covers bank account balances up to $250,000 per person, per institution and per ownership category.

According to the deposit account terms from Goldman Sachs Bank, you can deposit a maximum amount of $250,000. If you try to deposit more than that amount, the bank may reject your deposit.

How to deposit funds into the Apple savings account

You can deposit funds into the savings account via an ACH transfer from a linked external account or from your Apple Cash balance. This is in addition to depositing money earned through Daily Cash.

How to find high-yield alternatives

If you don’t have an Apple Card or don’t want to open one, you can look for other high-yield savings accounts. Many tend to be online only. This means institutions that offer them typically don’t have the costs of paying for bank branches and in-person tellers, so they can pass on the cost savings in the form of high APYs and no monthly service fees.

Today, some of the best federally insured savings accounts available have rates as high as 5% or more, often with no monthly fees or minimum requirements.

Whether you’re an Apple card customer and choose to open its savings account after reading this review, or choose a high-yield alternative, putting your money in a high-interest account is a smart way to help your savings grow.

APYs shown are current as of Feb. 16, 2024. All other information is current as of Jan. 9, 2024.