You may have heard that Apple recently launched a brand new high-yield savings account, but what makes it so great? As your friendly neighborhood finance guru, I‘ve got the scoop for you on the five best perks of Apple‘s savings account and why it beats the average boring old bank account.
An Amazing Interest Rate
Hands down, the number one thing that makes Apple‘s account awesome is that it offers an interest rate of 4.15% APY. This blows other savings accounts out of the water!
The national average savings account rate is currently 0.45% APY, according to the FDIC. That means your money will grow around 9 times faster in Apple‘s account versus a typical bank.
Let‘s look at some numbers to see what a difference the interest rate makes over time.
If you put $10,000 in a regular 0.45% APY savings account, after 5 years you‘ll have earned about $227 in interest. Not bad, but not great either.
In Apple‘s 4.15% APY account, that same $10,000 will earn around $2,167 in interest after 5 years.
That‘s over $1,940 more in earnings! All from the same initial deposit, just thanks to the higher interest rate.
Now can you see why I‘m so psyched about this rate? It will help your savings grow much faster so you can reach goals like an emergency fund or dream vacation quicker.
And remember – interest compounds daily, so your money is always working for you!
Zero Balance Required to Open
Did you know that around 68% of Americans have less than $1,000 in savings? That‘s a real problem when you know unexpected expenses come up all the time.
But here‘s some exciting news: you can open an Apple savings account with literally any amount of money.
There is no minimum opening deposit required whatsoever! Many banks make you deposit at least $500 just to open a savings account. Not Apple.
You could open the account today and start earning 4.15% interest on just $5 if you want. Or $50. Or even $1 – anything goes!
This makes it really easy for anyone to start building up savings without already having a pile of cash onboard.
Even better, you‘ll keep earning that same high rate no matter your account balance. Whether you have $10 or $10,000 in savings, Apple‘s rate stays the same.
So don‘t let a lack of existing savings stop you from getting started. Open that account today and let your money work harder for your future!
Zero Maintenance Fees
We’ve established you don’t need any money to open this savings account, but what about maintaining it?
Great news: Apple‘s account has zero monthly maintenance fees, no matter what your balance is.
A survey by Bankrate in 2022 found that the average bank charges a $5 monthly service fee on savings accounts. To avoid the fee, you usually have to keep a minimum balance of $300 to $500 or more.
Not with Apple! There are absolutely no monthly fees or minimum balance requirements to maintain your account and earn interest.
For example, keeping just a $100 balance in a regular savings account with a $5 monthly fee would whittle away $60 of your money in the first year alone.
In Apple‘s account, all your money stays in your pocket earning 4.15% instead of being eaten by fees. Now that‘s the type of savings account I can get behind!
Seamless Experience for Apple Users
Let’s say you have an iPhone and use other Apple products too. Well, you‘re in luck!
Apple‘s new savings account integrates beautifully with the Apple Wallet app. Once you open the account, you can monitor your savings right in Wallet alongside your Apple Card, payment cards, tickets, and more.
About 90% of current iPhone users report utilizing Apple Wallet frequently, so chances are you already have it on your home screen.
Now imagine opening Wallet and instantly seeing your up-to-date savings balance whenever you want, without having to search for another app.
The easy visibility helps you check on your savings progress more often. Out of sight, out of mind, right?
Plus, when you earn 3% Daily Cash rewards from Apple Card purchases, they get deposited directly into your savings account, not your credit card balance.
Watching those rewards build up your savings in real time feels great and helps motivate you to keep spending smart with your Apple Card.
For those already embedded in Apple’s ecosystem, the integration is a seamless experience you’ll really enjoy.
Protection and Peace of Mind
When choosing any bank or financial account, it’s smart to look for protections that keep your money safe.
The good news is Apple‘s savings account provides peace of mind by being FDIC insured. This means your money is protected up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC).
If anything ever happened to the banks behind Apple‘s account, you could recover 100% of your insured funds. Knowing your money is safe and secure lets you sleep better at night.
Many trendy financial apps don’t yet offer FDIC insurance. But Apple‘s account has your back right from the get-go.
And remember, the FDIC insurance applies per account type, per bank. So if you had $250,000 in Apple‘s savings account, and another $250,000 in Apple Card funds, both accounts would be fully insured for a total of $500,000 protected. Nice!
You really can’t beat rock-solid FDIC protection, especially when it comes with an interest rate over 9X the national average.
Who Can Benefit Most from This Account?
At this point, you’re probably wondering if Apple’s new savings account is right for you. Let‘s talk about who can benefit most from its perks:
New savers – The zero minimum balance is perfect if you‘re just starting out and don‘t have much cash to deposit yet. Earning 4%+ on even small amounts will help you build savings faster.
Goal setters – Regularly seeing your savings progress in Apple Wallet makes this account great for active goal-tracking. Watch your vacation fund, emergency savings or other targets grow.
Passive savers – If you‘re more of a "set it and forget it" saver, you’ll love earning high interest automatically on idle funds without having to actively manage investments.
Apple devotees – Already use an iPhone, MacBook, Apple Watch? You‘ll enjoy the seamless integration into your Apple Wallet and financial life.
Credit optimizers – If you religiously pay your Apple Card balance off every month, you can maximize rewards by depositing your Daily Cash into this high-yield account.
As you can see, there are a lot of people who can benefit from this account‘s unique advantages. But it’s not perfect for everyone…
Potential Drawbacks to Consider
Before you run off to open an Apple savings account, let‘s briefly look at a couple potential drawbacks:
You need the Apple Card – To open the savings account, you first have to apply and be approved for the Apple Card. This involves a hard credit check that can temporarily ding your score a few points. Not ideal if you only want the savings account and not the credit card.
Not the absolute highest yield – While 4.15% is excellent, some online banks offer closer to 5% APY under certain conditions. If you only care about the highest possible return, you may find better. But for most, 4%+ is amazing.
Limited withdrawals – Government regulation limits savings accounts to 6 outbound transfers per month. So this isn‘t an account for constant withdrawals. Manage it like most traditional savings accounts.
No checking features – Apple‘s account is savings only. No checks or debit card. You need to link an external checking account to transfer funds in and out.
As you can tell, the drawbacks are relatively minor compared to the perks for the average consumer. But weigh them carefully against what matters most to you in a savings account.
Is This Account a Fit for You?
We’ve covered a ton of fantastic benefits of Apple’s new high-yield savings account. But you’re unique, so is it right for you? Ask yourself these key questions:
Do you have or want an Apple Card? It‘s required to open the account, so this is key.
Will you keep your balance under $250K? This account has FDIC coverage up to that amount.
Do you like seamless tracking via Apple Wallet? If not, stand-alone bank apps may be preferable.
Is this for long-term savings? Frequent withdrawals are limited by regulation.
Is yield your ultimate priority? Shop around if you want the absolute highest rate above all else.
If you answered mostly yes, I think you’ll be very happy with this account‘s convenience features and above-average interest earning potential. It can provide a real nice boost to your savings strategy!
Just be sure you fully understand the Apple Card relationship and requirements before signing up. Read all the fine print as you would with any financial product.
Additionally, run the numbers on how much extra interest you’ll earn over time at 4.15% vs. your current savings rate. That will clearly demonstrate this account’s value.
Well, there you have it! I hope this overview gives you a clear sense of who can benefit most from Apple‘s new high-yield savings account and if it aligns with your needs. Feel free to reach out with any other questions!