Apple Card Raises Annual Percentage Yield For Second Time From 4.25% To 4.35%

Apple Inc. AAPL has raised the annual percentage yield (APY) for Apple Card’s linked savings account, Apple Savings, to 4.35%.

What Happened: On Thursday, Apple Card customers were notified that their Apple Savings account’s APY has been revised to 4.35% from 4.25%. This marks the second increase since the account was launched in December, reported Apple Insider.

The updated rate, however, still falls behind several rival high-yield savings accounts. For instance, the consumer-facing Marcus brand savings account of Goldman Sachs Group Inc GS offers a 4.5% APY. Other banks, such as UFB (5.25%) and PNC (4.65%), regularly adjust their APY, maintaining a competitive edge.

Goldman Sachs is reportedly looking to dissolve its partnership with Apple, which could be linked to the limited changes in the Apple Savings or Apple Card benefits. Although Apple has provided Goldman Sachs with an exit, a new bank to take over Apple’s financial services has not been announced.

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The rumored banks under consideration for an Apple Card and Savings takeover include American Express and Synchrony Financial. However, Apple’s criteria may need modification to facilitate this.

Why It Matters: The Apple Card Savings Account’s APY has seen significant increases in the past, reaching 4.25% in December 2023. These changes were announced alongside the incorporation of the account with Apple’s Daily Cash rewards. The recent rate hike brings the APY to 4.35%, demonstrating Apple’s continued efforts to enhance the financial benefits associated with its products.

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