Interest rate for the Apple Card is reduced again
The Apple Card is a banking service for Apple users in the US. It offers a savings feature that allows customers to earn interest on cashback offers. The interest rate was 4.15% when it was introduced.
The interest rate has changed several times over time – in March it was 3.75% and today it has fallen to 3.65% – the lowest level since the Apple Card was introduced. The interest rate is the same as Goldman Sachs’s savings account rate. Apple is the main partner for this banking service.
The interest rate of 3.65% has been adjusted due to the economic situation. Although it is lower than before, it is still significantly higher than the average interest rate (APY, Average Percentage Yield) in the US, which is only 0.59%.
The APY is the total return of an interest-bearing account over a period of one year. For Apple customers, the amount is accumulated through cashback programs – 1% on all purchases, 2% with Apple Pay, 3% in the Apple Store and with partners such as Uber or T-Mobile.
This balance is credited to the current account, but can also be transferred to the savings account, where it earns interest over time. Interest is compounded daily, so the balance grows daily if the user is patient enough.
Apple Card currently only available in the US
In an email to Apple Card users, Apple explained the reason for the adjustment and emphasized that the interest rate remains significantly higher than that of standard savings accounts:
“Why has the annual percentage rate for savings accounts changed?
The annual percentage rate for savings accounts is variable, and we may change interest rates at any time. Interest rates are influenced by many factors, including the Federal Reserve’s funds rate. A reduction in this rate will affect all U.S. financial institutions, and we are considering potential adjustments to our rates.
Our current APR remains eight times the national average, and we will continue to strive to keep it competitive.”
To get started with the Apple Savings Account, open the Wallet app, select your Apple Card, tap the three-dot icon, go to Daily Cash, and tap Set Up next to Savings Accounts—but, as mentioned, only if you live in the U.S.
While Goldman Sachs is reportedly planning to end its partnership with Apple early, it’s still unclear whether this will impact current Apple Card users. According to recent reports, Barclays, Synchrony, and JPMorgan Chase are among the contenders for the position of new financial partner.
