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  • Apple has a new high-yield savings account from Goldman Sachs available for Apple Card users.
  • The Apple Card Savings account pays a higher APY than the average savings account.
  • You can set up and manage the savings account through your Apple Card in the Wallet app.

Today, Apple released the Apple Card Savings account. The account is similar to high-yield savings accounts at the best online banks, although its rate isn't quite as high as what you'll make with the best interest-earning accounts right now. Apple Card Savings pays 4.15% (Annual Percentage Yield) APY. 

The Apple Card Savings account is available for Apple Card users in the US. You can set it up and manage it through the Apple Card in the Wallet app on iPhones. (Just make sure your iPhone is updated with iOS 16.4 or later.) Here's what you need to know about this new account.

How the Apple Card Savings account works

The Apple Card Savings account doesn't require a minimum opening deposit. It also doesn't have monthly service fees or minimum balance requirements. 

If an Apple Card user sets up a savings account, their Daily Cash rewards will automatically be deposited into the account. Daily Cash is a feature on the Apple Card where you can get up to 3% cash back on credit card purchases. 

"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," says Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet in a press 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."

The maximum amount of money you can keep in the savings accounts is $250,000. If you make a transfer that would cause your account to exceed the maximum balance limit, it may be denied.

To deposit or take out money from the Apple Card Savings account, you may link a bank account and initiate an ACH transfer. You could also move money to your Apple Cash card, which is a digital card available in the Apple Wallet.

Individual transfers must be between $1 and $10,000. You can also only transfer up to $20,000 from the account every seven days. You won't be able to deposit cash or make a wire transfer with this account.

Apple is not a bank. However, banking services are provided by Goldman Sachs, Member FDIC. Your account is FDIC-insured for up to $250,000 per depositor.

How the Apple Card Savings account compares to other high-yield savings accounts

The average savings account in the US offers 0.37% APY, according to the Federal Deposit Insurance Corporation (FDIC). The FDIC is a government agency that oversees banks. 

The Apple Card Savings Account has a much more competitive interest rate. You could earn 4.15% APY on your savings balance — this is more in line with the savings rates of high-yield savings accounts at online banks, like Ally or Discover. Interest on the Apple Card Savings account is compounded daily and deposited into your account monthly.

Other financial institutions with high savings rates

If you aren't eligible for the Apple Card Savings account or want to explore other options, there are online banks and credit unions with competitive savings rates right now. Here are some accounts from popular national branches that are featured in our best high-yield savings accounts guide: 

These accounts are also listed in our guide and pay the highest rates right now:

Bear in mind that the bank with the highest rates may not necessarily be the best choice for you. Choosing the right high-yield savings account may depend on other factors, like minimum opening requirements, monthly fees, customer support availability, and the company's ethics. You should also keep in mind is that high-yield savings accounts have variable interest rates, which means your savings rate could change at any time.

The banks listed above are all FDIC-insured. The FDIC protects consumers if a bank fails. You may also find bank accounts that are federally insured by the NCUA. The NCUA manages credit unions, and protects credit union members if an institution shuts down.

Read the original article on Business Insider