Apple has announced a high-yield savings account in collaboration with Goldman Sachs that would see users earn Daily…
Apple has announced a high-yield savings account in collaboration with Goldman Sachs that would see users earn Daily Cash rewards whenever they use their cards. The company’s card users would be able to earn a 4.15% yearly interest, which is more than ten times the national average, according to a statement posted on the company’s website on Monday
Daily Cash is the amount of cashback the business allows its users to accrue in their reward account. Unlike other cash-back credit cards, which give their customers points or cash back once a month when the credit card bill is closed, Daily Cash accumulates every day as users earn.
The new account with Goldman Sachs is designed to be free. That is, there are no fees, minimum deposits, or minimum balance requirements to become a beneficiary of this feature. Users can maximize this opportunity by launching and managing their savings account directly from the company’s card in Wallet.
Jennifer Bailey, vice president of Apple Pay and Wallet, explained, “Savings help 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,” she added that the objective is to create solutions that assist consumers in living financially healthy lives. Having savings built into their Card in Wallet would make customers’ transactions effective and reliable such as sending, spending, and saving Daily Cash all in one spot conveniently.
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How Daily Cash works
After a successful set-up of a savings account, sequential daily cash earned by users would be automatically deposited into the savings account, according to the company’s press release. However, users can opt out of the daily cash destination at will.
Daily cash is beneficial because there is no limit to the amount users can earn. Moreover, users can fund their savings account through a linked bank account or from their Cash balance.
From the company’s wallet, accessibility to an individual’s dashboard is trouble-free. Individuals can also withdraw funds through the savings dashboard to a linked bank account or to their cash card.
How does the interest on Apple’s savings account compare?
The new offering amplifies the tech giant’s suite of other financial offerings, including Apple Pay, Apple Card and the recent debut of a “buy now, pay later” service, said Ted Rossman, senior industry analyst at Bankrate.
“They’re trying to get that ‘top of mind, top of wallet’ status,” Rossman said.
According to Bankrates, Apple’s 4.15% savings account is now ranked 11th. Nonetheless, because of its name recognition, Apple may have an advantage when it comes to the top rate packages.
“At Bankrate, we tend to be fans of anything that gets people saving more and getting better returns,” Rossman mentioned. “This is definitely a big, important, popular company entering this space.”
In addition to the statement by Rossman, the savings account provides a “seamless factor” for Apple fans who already use the company’s phone, credit card, or buy now, pay later service. Also, the savings account is designed to be a supplement to the Apple Card, therefore daily cash-back rewards are placed there. Outside cash can be moved to the savings account as well.
Goldman Sachs provides Apple’s savings account, and the money is FDIC-insured. This means its accounts are federally insured up to $250,000 per depositor.
Following Silicon Valley Bank’s and Signature Bank’s failures, experts have underlined that FDIC coverage should be high on savers’ wish lists.