Apple Card makes another cut to the interest rate on its high-yield savings account, lowering it from 4.4% to 4.25%. This adjustment is due to the 50 basis point cut by the Federal Reserve.
Apple Card: Savings Account
Apple’s savings account debuted in April 2023 in collaboration with Goldman Sachs, and at launch offered an annual yield of 4.15%.
Since then, it has undergone several modifications: first it was raised to 4.5%, then it was lowered to 4.4% in April of this year, and now it is lowering it to 4.25%.
As I said at the beginning, this latest adjustment seems to have some correlation with the Federal Reserve’s interest rate cuts, which are intended to avoid a possible economic recession/stagflation.
Back to the Apple Card, its management is quite simple through the Wallet app on the iPhone. The account is also fee-free, with no initial deposit or minimum balance requirements, making it a tempting option for many people over 18 who live in the United States.
How does this reduction affect you?
Although the 0.15% reduction seems small, it is quite large for people who handle large sums of money.
For example, Apple recently raised the maximum balance allowed to $1 million, which, in the hypothetical case, a 0.15% decrease would imply a loss of $1,500 in interest.
Apple has managed to attract a considerable volume of savings through this account. It is estimated that deposits have already surpassed $10 billion, a figure that may have raised some concerns within the company due to the magnitude of the financial operation.
However, the decision to cut the interest rate on Apple Card seems to be more in line with the Federal Reserve’s adjustments than with any internal difficulties.