Apple has recently announced their high-yield savings account, and it’s already shaking up the banking industry around the world. Is this the next evolution of Apple and integration into our lives? Will it benefit us as consumers? Most likely, yes, and so here’s what you need to know about Apple Savings.
What is Apple Savings?
Launched in the U.S. in April, Apple Savings is a partnership with Goldman Sachs to create a savings account for Apple customers, earning them interest on all the money they deposit. What is particularly attractive, and what most customers are raving about, is that the Apple Savings account has a pretty high-interest rate of 4.15%, which is almost 11 times that of comparable accounts being offered by other American banks. This high-yield savings account, much like the Apple Credit Card, has caused quite a stir, as the savings account attracted well over $1 billion in savings, with nearly $400 million being deposited on its first day.
How does Apple Savings work?
Working in tandem with the Apple Card, when customers pay with their Apple Card, they get cashback on these purchases. The level of cashback falls into 3 tiers:
- 1% cashback – All purchases made using your Apple Card
- 2% cashback – All purchases made using Apple Pay
- 3% cashback – For purchases made with selected merchants
When you make a purchase, the cashback reward is deposited into the Apple Cash in your Wallet app. This cash can be used to purchase or pay for items just as you would normally do. Instead of using your linked cards, the Apple Cash balance is used. Alternatively, you can transfer your Apple Cash balance to a regular bank account.
However, starting with the launch of the Apple Card, users can now choose to deposit this reward cash into their new Apple Savings account. When opening Savings, you’ll also be asked if you want to transfer funds from your Apple Cash balance to your new account to start earning interest on that money.
With no fees, minimum deposits, or minimum balance requirements, users can easily set up and manage their Savings account directly from Apple Card in Wallet.
“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,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “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.”
Once a Savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. The Daily Cash destination can also be changed at any time, and there’s no limit on how much Daily Cash users can earn. To build on their savings even further, users can deposit additional funds into their Savings account through a linked bank account, or from their Apple Cash balance.
Is my money secure in Apple Savings?
There is no minimum amount of money that you can deposit with Apple Savings, but the maximum amount you can save is $250,000. Apple is partnered with Goldman Sachs, and as this bank manages the Savings Accounts, the balances are protected by the FDIC: Federal Deposit Insurance Corporation.
Can I open an Apple Savings Account in the UK?
Unfortunately not. At the present time, Apple Savings accounts are only available to residents of the U.S. with a valid, physical address. There has been no announcement about launching the Apple Savings Account outside of America, so it is unlikely that Apple Savings will be available anytime soon. However, with the launch of the Apple Savings account, rumours of a possible Apple Card and Apple Savings launching have begun percolating again.
What are the alternatives to the Apple Saving Account in the UK?
The Apple Savings account has proven to be incredibly popular in the U.S. and will undoubtedly attract significant deposits if and when it’s launched here in the UK
However, Apple aren’t the only high-yield savings account provider in town and with interest rates at their highest
First Direct Regular Saver Account – Earn up to 7% with this high-interest account. Fixed for 12 months, you can save up to £300 a month per year.
Apple is shaking up banking with both the launch of its Apple Card and now it’s Apple Saving Account. While these features are only available in the U.S. currently, they are likely to be rolled out worldwide in due course.
With a significant reach with millions of users potentially becoming banking clients and a strong product offering better than many competitors, Apple has a huge opportunity to become a global banking provider. It’s an exciting time for the consumer as this level of competition will hopefully force banks to build better products for their customers.
It may also provide cheaper access to banking and automatically generate cashback on every purchase. Something that is severely lacking in the UK. For savvy shoppers and money savers, there will be surely plenty of content on how to maximise your saving and spending rewards.