If you’re a fan of Apple products, then there’s a good chance you’ve heard of the Apple Savings account. However, you may wonder if it’s worth the hype. After all, Apple is primarily a tech company, so using a banking product offered by Apple may seem like an odd choice. If you’d like to know if the Apple Savings account is a financial win or tech giant hype, here’s what you should consider.
What Is the Apple Savings Account?
The Apple Savings account is a high-yield savings account option launched by the tech giant in April 2023. Technically, the account isn’t overseen entirely by Apple. Instead, the tech company partnered with Goldman Sachs – an investment and financial services firm – to make the savings account possible.
Apple Savings is highly connected to the broader Apple ecosystem, particularly those who use Apple Card or other financially-oriented services, like Apple Pay or Apple Wallet. Apple Savings does boast a higher interest rate than found on the average savings account, coming in at 4.25 percent (as of December 2023). Additionally, the accounts are FDIC insured up to $250,000, which provides peace of mind.
Is the Apple Savings Account Worth Considering?
The Apple Savings account isn’t a bad product, as it does offer an interest rate well above the average. However, whether it’s the right choice for specific people can vary.
For anyone interested in an Apple Savings account, they first need an Apple Card, a credit card that’s also issued through a partnership with Goldman Sachs. As a result, the savings account isn’t an option for everyone, as not all people will qualify for the required card.
While the interest rate Apple offers is competitive, it’s not the best of what’s available. Three are several other high-yield savings account options that exceed what Apple provides, with some hitting or crossing 5 percent. Other accounts also offer more FDIC insurance coverage, safeguarding more of the user’s savings.
There are also a few other caveats to consider. For example, the balance of an Apple Savings account can’t exceed $250,000. Additionally, accessing the funds requires some extra steps. If the account isn’t linked to an external account, the money has to be moved to Apple Cash. With that, there is a transfer limit of $10,000, as well as a rolling seven-day limit of $20,000.
Partnership
Finally, Apple has presented Goldman Sachs with a way out of the current partnership, with a potential exit timeline in the next 11 to 14 months. It’s unclear whether Apple is working to secure a new partner or how a new partnership would alter any features of the savings account or credit card. That creates a degree of uncertainty that could make customers uncomfortable.
However, the shift in partnership doesn’t mean Apple Savings isn’t worth considering. Ultimately, each person has to decide whether the account seems like the right fit for them, so it’s best to weigh the situation carefully. That way, you can make the choice that’s best for you.
Do you think the Apple savings account is worth exploring, or do you believe it’s just a bunch of tech giant hype? Share your thoughts in the comments below.
Read More:
- How to Choose the Right High-Yield Savings Account for Your Needs?
- 3 Alternatives to Online Savings Accounts
