Apple savings account | What the Tech?
ALBUQUERQUE, N.M. (WHAT THE TECH?) — It seems like Apple does just about everything and now they’re getting into banking with their own credit cards and saving accounts.
Why would someone choose to bank through Apple, rather than a traditional bank, though?
A traditional bank offers savings accounts we are all familiar with but often online banks offer high-yield savings accounts.
Still, there are some things to keep in mind before you open up a savings account with Apple or another online bank.
Apple’s savings accounts are through Goldman Sachs, which also handles credit cards. Their high-yield savings account currently has a 4.15% interest rate. Traditional bank savings accounts are around .35%.
That difference is big over time.
$1,000 in a traditional savings account will earn around $3.50 a year in interest. Meanwhile, $1,000 in an Apple savings account will earn around $41.50 a year in interest.
Apple savings accounts connect with customers’ Apple credit cards, which earn about 2% cashback. That’s not as much as some other credit cards, which offer miles and points. However, the cash earned using an Apple credit card can automatically deposit into an Apple savings account.
To apply for a savings account, customers must have an Apple credit card. In the Wallet app, tap “Daily Cash,” where you’ll see an option to open a savings account.
Now, here’s the big question: Is Apple’s savings account safe?
Like most other high-yield accounts, the FDIC insures it up to $250,000. Apple also insists on security for credit cards, Apple Pay and Apple Savings, as they require Face ID to conduct transactions.
Remember, if you do any banking with your phone, a tablet or computer, never do it over a public wifi network and use strong passwords you don’t use for any other account.
Also remember, opening a high-yield savings account doesn’t lock you into that interest rate. If the Federal Reserve lowers interest rates again, the high-yield rates will likely drop too.