Apple Card Users Can Now Get Interest On Daily Rewards In A Savings Account

Apple Inc AAPL introduced new savings account for users of its credit card on Thursday.

What Happened: Apple Card users will now be able to save their “Daily Cash” rewards in a high-yield savings account from Goldman Sachs Group Inc GS. 

The account will come with no fees, no minimum deposits and no minimum balance requirements, according to Apple.

The users of the account will be able to deposit additional funds through a linked bank account or from their Apple Cash balance, said the Tim Cook-led company.

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Withdrawals without a fee can be made by transferring funds into a linked bank account or through the Apple Cash card. A savings dashboard in the Wallet app will indicate the balance and interest accrued.

Why It Matters: Apple’s offering comes at a time of rising interest rates. The U.S. Federal Reserve issued a third straight 0.75% rise in interest rates last month. 

However, the rising rates come amid high inflation, which has caused some consumers to begin using credit cards to complement their budget.

Apple and Goldman Sachs launched a credit card together in Aug. 2019 with cash-back returns.

Apple Card users, who typically have low credit scores, are statistically more likely to miss payments in such a scenario, according to a prior report.

Price Action: On Thursday, Apple shares closed 3.4% higher at $142.99 in the regular session and fell 0.1% in the after-hours trading, according to data from Benzinga Pro.

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