Apple has $10 billion in savings, but the interest rate is not competitive.

Apple has $10 billion in savings, but the interest rate is not competitive.

Apple’s Savings Account Surpasses $10 Billion in Deposits

Apple Savings Account

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This week, Apple made headlines with the announcement that its Goldman Sachs-backed savings account has surpassed $10 billion in deposits. While this is an impressive feat, it’s essential to explore the background and consider the alternatives as well.

Apple’s Suite of Products

Apple’s savings account is just one of the many products integrated into Apple Wallet, which allows iPhone users to conveniently manage their finances. Alongside the savings account, Apple offers Apple Card, a credit card that provides users with automatic 3% cash back on Apple and select retailer purchases, and 2% back on other purchases.

When users earn cash back, they have three options for where to allocate it: an Apple Cash card, an Apple Savings account, or as a statement credit. According to the press release, 97% of Savings customers prefer automatic deposits into Apple Savings, which currently offers an attractive 4.15% Annual Percentage Yield (APY).

The Appeal of Apple Savings

The success of Apple Savings can be attributed, in part, to the convenience it offers. As of December 2022, Apple iPhones accounted for 52% of the US smartphone market, making it likely that the ease of automatic deposits into a branded savings account contributes to the appeal.

However, it’s important to note that if consumers were solely focused on finding the highest interest rate, they would need to explore other options.

High-Yield Savings Alternatives

One such alternative to Apple Savings is Marcus, another savings account offered by Goldman Sachs. Currently, Marcus offers a slightly higher APY of 4.30%. Marcus, like Apple Savings, is fee-free, FDIC-insured, and operated by Goldman Sachs’ Salt Lake City branch.

Nevertheless, there are several savings accounts on the market that offer even higher rates:

Account Annual Percentage Yield (APY)
Betterment Cash Reserve 5.50% for new customers, 4.75% for existing customers
OceanFirst Bank 5.25%
Milli Savings Account 5.25% on Savings Account and Jars
Synchrony High Yield Savings 4.50%
SoFi Checking and Savings Up to 4.50%
Barclays Online Savings Account 4.35%

These accounts represent a mix of lesser-known brands that are willing to offer higher rates to attract customers and established banking institutions that are also competing in the high-yield savings space.

The Verdict: Exploring the Best Options

When searching for a high-yield savings account, it’s important to consider not only the interest rate but also factors like ease of use, customer experience, and the financial institution’s reputation. While Apple Savings offers a competitive rate, there are other accounts, such as Betterment Cash Reserve or OceanFirst Bank, with even higher APYs.

To find the best account for your needs, check out our full list of the best high-yield savings accounts which includes options with the highest rates, user-friendly interfaces, and strategic places to grow your money.

In conclusion, Apple’s savings account reaching $10 billion in deposits is undoubtedly an achievement, driven in part by the convenience it offers to iPhone users. However, for individuals seeking the highest interest rates, there are other accounts available that provide even greater returns on their savings.