Apple looks even more like a bank now that it’s adding a savings account to Apple Card
Soon, Apple Card users will be able to open a “new high-yield Savings account,” Apple says. There’s just one hitch: Apple won’t say what interest rate it’s offering.
There’s also no specific timeline for when consumers can access these savings accounts.
Apple has been moving into fintech with the Apple Card, which it partners with Goldman Sachs on. As one of its perks, card users get Daily Cash, Apple’s special branding on the more mundane cashback rewards, on their purchases. The promise of this “high-yield” savings account is that cardholders can have their Daily Cash deposited into it “with no fees, no minimum deposits, and no minimum balance requirements,” the company says.
This isn’t the first savings account offered by a tech company — PayPal recently added a savings account with a 2.45 percent annual percentage yield (APY), and Robinhood has tested similar features. Apple, which also offers buy now, pay later services, appears to have decided that competing with tech companies isn’t enough. It also wants to compete with banks. Of course, banks generally tell you what the interest rates on their savings accounts are.
Anyone who has the account can also deposit funds into the new savings account from a linked bank account or from their existing Apple Cash balance. Once it’s set up, all Daily Cash received will automatically be deposited into it, although users can change that to put it directly on the Apple Cash card in the Wallet app.
The cashback rebates on the Apple Card are 1 percent for most purchases, 2 percent when using Apple Pay, and 3 percent when buying from Apple or some of its partners, like Uber, Nike, or T-Mobile.