The new savings account, facilitated by Goldman Sachs
Moreover, Apple said that all Daily Cash rewards, which can be earned by using the Apple Card with Apple Pay, will be automatically deposited into the savings account once the user sets one up from the Wallet app on their iPhone. The company currently offers up to 3% cash back through its Daily Cash rewards program --by default, all purchases earn 1% in cash rewards, 2% for all purchases made using Apple Pay, and 3% from select merchant rewards.
Users can also add funds from other bank accounts to the new savings account to build on their earnings. Account details including current balance, interest rate and recent transactions are accessible from the Wallet app, which is where users can also manually deposit or withdraw funds.
"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, vice president of Apple Pay and Apple Wallet at Apple, in a 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."
Apple's APY is also pretty competitive compared to other high-yield savings accounts offered by other lenders; Goldman Sachs itself offers an APY of 3.9% through its Marcus savings account. According to data from Bankrate, current high ranking savings accounts offer APYs ranging from 3.5% to 4.75%, but many have other restrictions that Apple does not require like minimum balances. However, Apple's savings account has a maximum account balance limit of $250,000.
Apple first announced the savings account in October, and has since adding the feature alongside its highly anticipated buy now, pay later service to the Wallet app, which launched in March, allowing users to pay back their Apple Card purchases in a set of four payments over the course of six weeks with no interest or fees.