Apple Inc. AAPL is set to lower the interest rate on its Apple Card high-yield savings account, effective Friday, Oct. 11. The new annual percentage yield (APY) will be 4.10%, a decrease from the previous 4.25%.
What Happened: This marks the third reduction in the interest rate for the Apple Card savings account this year, and the second in recent weeks.
In late September, the APY decreased from 4.4% to 4.25%, following an earlier cut from 4.5% to 4.4% in April. The upcoming rate will drop below the initial 4.15% APY introduced in April 2023.
Interest rates for savings accounts often fluctuate in response to Federal Reserve adjustments. Recently, a significant 50 basis point reduction occurred in September, and further cuts are anticipated, as noted by Federal Reserve policymakers.
Other high-yield savings accounts, such as those from Discover, American Express, and Capital One, now also offer a 4.10% APY.
Apple collaborates with Goldman Sachs for its savings account, which is available to Apple card holders and manageable via the iPhone Wallet app. The account allows users to earn interest on their Daily Cash balance and funds transferred from bank accounts or Apple Cash.
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Why It Matters: The Apple Card savings account, launched in April 2023, initially offered a competitive 4.15% APY, significantly higher than the national average of 0.35%, according to the FDIC.
This move was part of Apple’s strategy to enhance its financial services offerings in collaboration with Goldman Sachs. Despite the recent reductions, the account remains competitive, with rates aligning with other high-yield savings accounts.
Earlier this year, Apple raised the APY to 4.35% in January, marking the second increase since the account’s inception, as noted in January. However, the rate still lagged behind some competitors, such as Goldman Sachs’ Marcus brand offering a 4.5% APY.
As interest rates continue to fluctuate, Apple Card savings account holders should stay informed about potential changes and how they might impact their savings strategy.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Apple
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