Apple, yes the company that makes iPhones and MacBooks just launched their own high yield savings account! But is it worth it and what do you need to know before you go and open a savings account with Apple? Let’s talk about that real quick.

On April 17, 2023 Apple said:

“Starting today, Apple Card users can choose to grow their Daily Cash rewards with a Savings account from Goldman Sachs, which offers a high-yield APY of 4.15 percent1 — a rate that’s more than 10 times the national average. With no fees, no minimum deposits, and no minimum balance requirements, users can easily set up and manage their Savings account directly from Apple Card in Wallet.”

Let’s go over the basics:

WHO MAY OPEN AND MAINTAIN AN ACCOUNT. Well, you can open an Account if you:

• Are at least 18 years old;
• Are an Owner or Co-Owner of an Apple Card, as defined in the Apple Card Customer Agreement; Apple card is a credit card. I don’t have an Apple Card so I would not qualify. I actually do not own a credit card at all (even though my credit score is like 750 but that’s another story for another day), but one of the requirements is to have an Apple Card where you have to qualify for that, so if you qualify to have an Apple Credit Card then you’re on your way to have an Apple High Yield Savings Account.
• Your Apple Card is in good standing;
• Have a Social Security Number or Individual Taxpayer Identification Number; and
• Have a street address in (i) the U.S.; (ii) the territories of Puerto Rico or United States Virgin Islands (collectively, “U.S. Territories”); or (iii) a U.S. military base or U.S. embassy (i.e., an Army/Air Post Office, Fleet Post Office, or Diplomatic Post Office address) (collectively, “U.S. Jurisdictions”). You cannot use a post office box (other than on a U.S. military base or at a Diplomatic Post Office).

So how does this Apple High Yield Savings Account work? First, to open an Apple savings account do the following:

1. On your iPhone, open the Wallet app and tap Apple Card.
2. Tap the More button.
3. Then tap Daily Cash.
4. Tap Set Up next to Savings, then follow the onscreen instructions.

When opening Savings, you’ll be asked if you want to transfer funds from your Apple Cash balance to your new account to start earning interest on that money. If you don’t want to transfer your Apple Cash balance, just tap the Close button 

If you want to transfer funds, tap Transfer Your Apple Cash and follow the onscreen instructions. Once a Savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. 

So, Once a Savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. 

The Daily Cash destination can also be changed at any time, so if for some reason you don’t want the money going to the HYSA then the money would essentially sit as cash not earning anything.

Something cool, I think is that you can build your high yield savings account by depositing  additional funds into your Savings account through a linked bank account, or from their Apple Cash balance. 

As I previously mentioned there are no fees, and no minimum opening balance requirements and no ongoing minimum balance requirements TO 

HOWEVER, there is a MAXIMUM DEPOSIT LIMIT.

As stated in Apple’s terms:

The maximum balance for your Account is $250,000. We will include any funds deposited into your Account but not interest or Daily Cash you’ve earned when determining the maximum balance limit. We may reject and return any funds transfer if your Account exceeds the maximum deposit limit. You authorize us to return any funds that exceed the maximum balance limit by check.

Users will also have access to an easy-to-use Savings dashboard in Wallet, where they can conveniently track their account balance and interest earned over time. Users can also withdraw funds at any time through the Savings dashboard by transferring them to a linked bank account or to their Apple Cash card, with no fees.

ACH Transfer with a Linked External Account 

You may deposit or withdraw funds from your Account through an ACH Transfer into or from a linked external account. We may place limits on the amount of funds transferred based on total dollar amount or frequency, and will disclose such limits to you at the time you schedule your ACH Transfer.

AVAILABILITY OF ACH TRANSFERS Funds received by ACH Transfer initiated through Apple Wallet from a linked external account will generally be available 5 Business Days after you initiate the ACH Transfer, but may be available earlier.

Now in case you’re wondering how FDIC insurance works with this Apple high yield savings account…well Apple is not a financial institution. This Savings account is provided by Goldman Sachs Bank, Member FDIC.

And the Federal Deposit Insurance Corporation (“FDIC”) insures deposits up to the standard maximum deposit insurance amount (which is $250,000 currently) per depositor, per FDIC-insured bank, and per ownership category.