Apple Card Savings cuts interest rate again

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AppleInsiderAppleInsider
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in iOS

Originally marketed as a high-yield account, Apple Card Savings has once more had its interest rate reduced.

Partial smartphone screen showing a savings account with a current balance of $201.22 against a turquoise background.
Apple Card Savings has cut its interest rate again



Following its first cut from 4.5% to 4.4% in April 2024, the annual percentage yield (APY) for Apple Card Savings is now to be 4.25%. That's still higher than the savings account's original 4.15% in 2023, however.

When the account first launched, that rate was not the best but was considered high yield. Subsequently, though, many other banks have increased their APY.

By the time Apple introduced its first cut in April 2024, Apple Card Savings had become around average, or perhaps slightly below that. All bank APYs fluctuate, however, so there is no consistent league table of which are the best.

Apple Card Savings users were informed of the rate change in a notification sent jointly by Apple and the finance company currently behind the service, Goldman Sachs. Separately, Goldman Sachs is looking to quit its deal with Apple as it pulls out of consumer credit cards entirely.

While both Apple Card Savings and the regular Apple Card will doubtlessly continue, no replacement for Goldman Sach has been announced. Most recently, however, it's been reported that JP Morgan may take over.



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Comments

  • Reply 1 of 7
    NYC362nyc362 Posts: 109member
    Not unexpected considering Goldman is losing money on the card and the Fed just cut interest rates by ½ a point.  At some point, other high yield accounts are going to see their rates cut too- especially if the Fed cuts rates again as expected. 
    kiehtanwatto_cobra
     2Likes 0Dislikes 0Informatives
  • Reply 2 of 7
    iOS_Guy80ios_guy80 Posts: 948member
    Apple savings account rate history
    4/30/23 4.15 APR
    12/20/23 4.25 APR
    1/4/24 4.35 APR
    1/27/24 4.50 APR
    4/3/24 4.40 APR
    9/25/24 4.25 APR

    Discover savings account rate history 
    10/3/22 2.10 APR
    5/18/23 3.90 APR
    6/7/23 4.0 APR
    6/22/23 4.15 APR
    7/27/23 4.30 APR
    kiehtan
     1Like 0Dislikes 0Informatives
  • Reply 3 of 7
    sbdudesbdude Posts: 307member
    When the fed cuts interest rates, so do banks. This isn't news, and it isn't just Apple.
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 4 of 7
    sunman42sunman42 Posts: 333member
    sbdude said:
    When the fed cuts interest rates, so do banks. This isn't news, and it isn't just Apple.
    Exactly. This is about as much news as “Dog bites man.”
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 5 of 7
    grandact73grandact73 Posts: 75member
    The Apple Card Savings rate was never competitive since Day 1. Dozens of banks have always provided high rates than Apple.
    williamlondon
     0Likes 1Dislike 0Informatives
  • Reply 6 of 7
    grandact73grandact73 Posts: 75member
    sbdude said:
    When the fed cuts interest rates, so do banks. This isn't news, and it isn't just Apple.
    It kind of is just Apple. Lots of banks are either maintaining their higher rates or not cutting as much as Apple is.
    williamlondon
     0Likes 1Dislike 0Informatives
  • Reply 7 of 7
    Stabitha_Christiestabitha_christie Posts: 711member
    grandact73 said:
    sbdude said:
    When the fed cuts interest rates, so do banks. This isn't news, and it isn't just Apple.
    It kind of is just Apple. Lots of banks are either maintaining their higher rates or not cutting as much as Apple is.
    Apple isn't cutting rates, Goldman Sachs is the bank not Apple. GS also cut it on their Marcus savings account as well. And they are by no means the only one that has cut rates. 
    watto_cobrawilliamlondon
     2Likes 0Dislikes 0Informatives
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