Apple Card Savings Account Interest Rate Soars To 4.25% - What's The Catch?

Apple Inc. AAPL has announced a significant increase in the interest rate for its Apple Card Savings Account. The tech giant has upped the rate to 4.25% APY.

What Happened: 9to5Mac reported on Wednesday that the savings account, which is exclusive to Apple Card users, permits customers to deposit their Daily Cash rewards automatically. The account also accepts additional funds from a linked bank account or Apple Cash balance. Interest on the account is compounded and paid out monthly.

See Also: Ivanka Trump Praises ‘Day One’ Philosophy Of Amazon Founder Jeff Bezos, Draws Parallels With Alan Watts’

The adjusted interest rate, which surpasses the industry average, was disclosed through a push notification sent to Apple Card Savings Account users on Wednesday. Despite the substantial increase, the rate remains lower than some other high-yield savings accounts, such as Goldman Sachs‘s Marcus savings account, which offers a 4.50% APY.

Why It Matters: This development follows Apple’s reported decision to end its financial services partnership with Goldman Sachs Group Inc. GS. Apple reportedly severed ties with Goldman Sachs to dissociate itself from an underwhelming customer experience.

Even before the split with Goldman Sachs, Apple was said to be seeking a new partner to manage its Apple Card operations. This was hinted at in a job listing for a software engineer for Apple Processing LLC, which suggested a potential collaboration with Brazilian fintech company Pismo.

Read Next: iPhone 16’s Secret Button Sparks Excitement: What’s Apple Hiding?

Photo by Primakov on Shutterstock