The interest rate earned by cash stored in Apple Card Savings accounts dropped on Wednesday, continuing a series of such reductions begun in 2024 when the Federal Reserve cut its benchmark interest rate. Money in these accounts now earns 3.65% in annual interest.
Over the past two years, Apple and Goldman Sachs boosted and lowered in the rate multiple times. And the current rate is still well above what’s earned by typical savings accounts.
Apple Card Savings accounts now pay 3.65% in interest annually
Starting in spring 2023, money earned from Apple Card’s cash-back program can automatically go into a high-yield savings account. Plus, users of Apple’s credit card can easily transfer cash from other accounts that pay a lower interest rate.
And there are plenty of accounts with lower rates. A Wells Fargo one pays 0.01% to 0.05%, for example, and Bank of America pays 0.01% to 0.04%. But an Apple account pays much more.
In April 2024, the Apple Card Savings rate was set at 4.4%. But it dropped to 4.25% in late September, and in October further declined to 4.1%. On December 5, it went to 3.9%, and on March 25 it dropped again to 3.75%. Now it’s at 3.65%
The changes are in response to a series of reductions in the Federal Reserve’s federal funds rate. It’s now in a range of 4.25% to 4.5%, while back in September 2024 it was at 4.75% to 5%. A drop in the federal funds rate generally means banks lower savings accounts’ interest rates.
The rates given reflect the Annual Percentage Yields, of course. And Goldman Sachs compounds interest daily. So now $100 in an account earns $3.65 a year. Or put $10,000 away and earn $365 each year. The money is divided up monthly, of course.
Put your money work for you
With U.S. inflation at about 2.4%, the dollars stored in an Apple Card Savings account are genuinely increasing in value. Plus, there are no fees.
These benefits make an account a much better option than stuffing the cash under a mattress. Or even putting it in a low-yield account from another bank.
Read the Cult of Mac guide on how to sign up for Apple Card Savings and start earning significant interest.
