The interest rate earned by cash stored in Apple Card Savings accounts dropped on Thursday, the second time it’s been cut this year. Money in these accounts now earns 3.4% in annual interest.
The bank behind the savings account is responding to changes in the U.S. economy. Plus there’s another possible factor: less desire to bring in new customers.
Apple Card Savings annual interest rate: Now at 3.4%
Money earned from Apple Card’s cash-back program can automatically go into a high-yield savings account that’s managed by Goldman Sachs. Plus, users of Apple’s credit card can easily transfer cash from other accounts that pay a lower interest rate.
The Apple Card Savings APY was once way up at 4.5%, but a series of rate cuts starting in 2024 gradually brought it down. The rate now sits at 3.4%.
Following the Federal Reserve’s lead
Goldman Sachs explains the rate drop by stating, “Rates are influenced by many factors, including the Federal Reserve Funds Rate. When this rate is lowered, it affects all US financial institutions and we evaluate potential adjustments to our rates.”
To combat high inflation after the pandemic, the Federal Reserve aggressively raised its benchmark interest rate. Because borrowing money became expensive, banks were willing to pay customers a high APY to keep cash with them. But over the past year, the Fed has generally been cutting interest rates. This time last year, the Federal funds target range was 4.25%–4.50%. Today, it’s 3.50%–3.75%.
When the Fed lowers rates, banks typically respond by lowering the rates they pay on savings accounts because they earn less from lending money. Many high-yield savings accounts across the industry have seen APY cuts over the past year.
Goldman Sachs isn’t singling out Apple Card users — it lowered rates across many of its deposit products as market interest rates have fallen.
Another factor affecting the Apple Card Savings interest rate
What’s interesting is that Apple’s latest cut to 3.4% came even though the Fed hasn’t cut rates in 2026 so far. That suggests Goldman Sachs may be adjusting its deposit rates for another reason.
Goldman Sachs and Apple are in the process of moving the Apple Card relationship to JPMorgan Chase. While Apple hasn’t said this is causing APY reductions, the changing business arrangement may affect how aggressively Goldman wants to attract deposits.
In other words, the bank might not care that the 3.4% interest rate is less interesting to new customers, considering those people will soon become JPMorgan Chase’s customers.
Still a solid investment
Even at 3.4%, an Apple Card Savings account is still earning significantly more than a traditional brick-and-mortar bank account, which often pays a meager national average of around 0.4%.
“Our current APY remains 8X the national average and we will continue to strive to keep it competitive,” notes Goldman Sachs.
The rates given reflect annual percentage yields. And Goldman Sachs compounds interest daily. So now $100 in an account earns $3.40 a year. Or put $10,000 away and earn $340 each year. The money is divided up monthly.
Ed Hardy has been writing full-time about tech for 25 years, and using it for much longer than that. His intro to Apple was a Macintosh SE/30 (which he still has), but now he uses a 13-inch iPad Pro as his primary computer.
That’s because he’s a “tablet first” type of guy. Rather than use a Macbook, he connects a keyboard case to the iPad. And instead of a desktop Mac, he connects his tablet to a 27-inch display and full-size keyboard. (So don’t try to tell him that everyone has to use a Mac to be productive.)
Before coming to Cult of Mac, Ed wrote for NotebookReview, TabletPCReview and Brighthand, as well as other sites.
