By now you’ve probably heard that Apple has partnered with Goldman Sachs to offer a high-yield savings account with an enticing 4.15% annual interest rate. For perspective, that’s more than 10 times the national average (0.39%) and still higher than what some well-established competitors offer.
But given that the average person sticks with the same savings account for around 17 years, we asked ourselves a simple question: Is switching to Apple’s savings account worth the hassle?
The Details
Apple launched its own credit card in 2019 called (drum roll, please) the Apple Card. The new high-yield savings account comes as an exclusive Apple Card perk, meaning that you’ll have to open an Apple Card account and have an iPhone to earn that sweet 4.15% annual percentage yield (APY).
On top of the competitive APY, there aren’t any monthly fees or minimum balance requirements, though the account can’t hold more than $250,000 at one time. In practice, that means that all your cash will be insured by the FDIC, so you don’t have to worry about losing your money in a Silicon Valley Bank-type snafu.
The Competition
At time of publication, the highest interest rate you’ll find for savings accounts is around 5%. So while Apple doesn't take first place in terms of APY, it’s still at the head of the pack.
And if we take other perks into account — the lack of fees and minimum balance requirement, for example — Apple becomes a frontrunner. The question you have to ask yourself is: Is switching banks or opening another account worth all the time it takes to redirect direct deposits and move around cash?
Assuming you have around $5,000 in the bank — the median sum was $5,300 in 2019 — the difference between 3% and 4% APY is only going to be about $50 a year. Since that's not that much money, it's probably not worth opening an account with Apple if you already have a high-yield savings account you like.
If, on the other hand, your account is earning the national average of 0.39%, bumping that number up to Apple's 4.15% will yield you an extra $188 — a significant sum for the hour it might take to rearrange your finances.
| CFG Bank | Upgrade | Citizens Bank | Apple Savings | SoFi | |
|---|---|---|---|---|---|
| Institution Type | Community bank | FinTech company | Commercial bank | Online bank | FinTech company and bank |
| Annual Percentage Yield (APY) | 5.02% | 4.56% | 4.25% | 4.15% | 4% |
| Minimum Deposit | $1,000+ | $1,000 | $0.01 | $0 | $0 |
| Yield After One Year ($5,000 balance) | $251 | $228 | $212.50 | $207.50 | $200 |
Setting Up an Account
Assuming you already have an Apple Card, setting up the bank account is pretty straightforward:
Open your Apple Wallet.
Tap on the three dots in the upper right corner.
Select “Daily Cash.”
Tap “Savings.”
Follow the instructions.
You can deposit funds into this online bank account in two ways. Either you transfer money from another bank account, or you deposit your credit card’s daily cash back earnings.
What Consumers Think
Most consumers seemed impressed by Apple's new savings account, with the highlight being the 4.15% interest rate.
"4.15% is actually pretty damn impressive. Not the highest rate you can get, but it’s in that upper tier. Considering everyone thought this was going to (essentially) be an Apple branded Marcus account, it’s exciting that they’re offering even more than that," one Redditor commented on r/Apple, referring to Goldman Sachs' high-yield Marcus account.
Speaking of Marcus, the announcement did seem to tick off some Goldman customers, as they only receive 3.9% APY. That said, even Marcus customers might not want to shift their funds over, as there's no guarantee that Apple's account will remain competitive in the long term, a point that multiple users brought up on social media.
"IMO people shouldn't get too excited about the initial rate. A lot of banks will temporarily jack up interest rates to generate hype, then bring them down after a few months (even if prevailing interest rates are flat)," an r/Apple Redditor wrote.
Let me get this straight…
— Kevin Flynn (@FlynnCNBC) April 17, 2023
I have a Marcus savings account at Goldman Sachs. It yields 3.9%
Apple’s new product - serviced by Goldman - yields 4.15%.
Huh?
I mean… Goldman is asking me to leave Marcus. https://t.co/5uJb0E5t4q
The Verdict
Thanks to its competitive interest rate, Apple Card integration, and other perks, Apple's new savings account is a logical choice for consumers on the market for a high-yield savings account. But if you're already earning 3% or 4% elsewhere, there's little reason to open an Apple account, unless you're an Apple enthusiast or Apple Card user. Wherever you decide to bank, Apple's announcement serves as a good reminder that you don't have to settle for a measly .39% interest rate.
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