On Monday, Apple, in partnership with Goldman Sachs, Announce A new high-yield savings account for Apple Card users. You’re probably wondering what all this means.
Simply put, you can now put your Daily Cash Rewards — Apple’s name for the small amounts of cash back you get for using Apple Card — into a savings account with an annual yield (APY) of 4.15%.
This is a much higher rate than you would get for keeping money in a regular savings account at a traditional bank. By comparison, Bank of America gives you a measly 0.01% APY. But be careful: Apple said its APY can change at any time.
More importantly, Apple will also let you add money to this high-yield savings account directly from your existing bank account, meaning you can just dump thousands of dollars in there (up to $250,000) and see some serious returns. (If you choose to put a chunk of change into a high-yield savings account from Apple, I’d love to hear from you; email me at pranav.dixit@buzzfeed.com.)
This move is the latest in Apple’s move into financial services. Last month, Apple added Buy Now, Pay Later to Apple Card, which lets you pay for your purchases over six weeks interest-free. This feature puts the tech giant in competition with companies like Klarna and Affirm.
“Our goal is to create tools that help users live healthier financial lives, and creating Apple Card savings in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place,” said Jennifer Bailey, Apple vice president of Apple Pay and Apple. Wallet in a statement.
The feature is currently only available in the US. It is important to note that Apple’s APY Not the highest level available. But if you already have Daily Cash from using your Apple Card, storing it in a savings account that can be accessed directly from the Wallet app on your iPhone is a no-brainer.