Apple Savings Account Review 2023 (4.15% APY)
Apple Savings Account Review 2023 (4.15% APY)
Apple Savings Account: A Comprehensive Review
Our experts at Insight Bank provide unbiased product reviews and answer readers’ banking questions. Today, we’ll be looking at the Apple Savings Account, offered by the tech giant, Apple itself. But before we dive into the details, let’s first explore the pros and cons of this unique savings account.
Apple Savings Account Pros and Cons
The Apple Savings Account has several advantages that make it an appealing option for those who already use the Apple Card. Here are some of its key benefits:
- Competitive Interest Rate: With an impressive 4.15% APY (Annual Percentage Yield), the Apple Savings Account holds its own against some of the best online banks in terms of interest rates.
- No Minimum Balance Requirements or Monthly Service Fees: Unlike many other banks, Apple does not impose any minimum balance requirements or monthly service fees, allowing account holders to save without worrying about additional costs.
- Easy Integration with Apple Ecosystem: Apple users can seamlessly link their Apple Savings Account to their other Apple services, such as the Apple Wallet app, allowing for convenient tracking of their account balance and easy management of savings.
On the other hand, the Apple Savings Account might not be the best fit for everyone. Here are a few potential drawbacks to consider:
- Limited Accessibility: To access funds from the Apple Savings Account, users need to initiate a transfer to their Apple Cash card or a linked bank account, which can take several business days to clear. This delayed access to funds may pose challenges for those who require immediate liquidity.
Apple Savings Account Review
Apple, known for its innovative technology products, has ventured into the world of finance with its high-yield savings account, aptly named Apple Savings. This account offers a competitive interest rate of 4.15% APY and comes with several attractive features.
Unlike traditional banks, Apple Savings Account holders are not required to maintain a minimum balance or pay any monthly service fees. This makes it an accessible option for those starting their savings journey or looking for a hassle-free banking experience.
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One notable feature of the Apple Savings Account is the automatic deposit of Daily Cash rewards earned from Apple Card purchases. This means that users can earn interest on their cash-back rewards, further maximizing their savings potential. Additionally, deposits from linked external bank accounts or Apple Cash balances also earn interest.
The Apple Wallet app provides a dedicated Savings dashboard for users to conveniently monitor their account balance and track their progress towards their savings goals.
Is Apple Savings Trustworthy?
It’s important to note that Apple itself is not a financial institution, but rather the Apple Card and Apple Savings are issued and provided by Goldman Sachs Bank USA, a Member FDIC bank. Deposits held in the Apple Savings Account are insured for up to $250,000 for individual accounts.
Apple maintains a strong reputation, with an A+ rating from the Better Business Bureau, indicating a commitment to responsive customer service, transparent business practices, and truthful advertising claims. Additionally, Apple and Goldman Sachs have not experienced any data breaches in the past five years, as reported by the Identity Theft Resource Center.
While Apple has a clean record, Goldman Sachs has faced some controversies and consumer complaints in recent years. In 2022, the Securities and Exchange Commission charged Goldman Sachs Asset Management with failing to follow its policies and procedures related to ESG (environmental, social, and governance) investments. Goldman Sachs agreed to pay a $4 million penalty to settle the charges. Furthermore, in 2020, Goldman Sachs was involved in a foreign bribery case, settling with criminal and civil authorities for over $2.9 billion.
While these incidents raise concerns, it’s worth noting that the Consumer Financial Protection Bureau has not received any complaints about Apple in the past year.
How the Apple Savings Account Compares
To provide a comprehensive review, let’s examine how the Apple Savings Account stacks up against a couple of other popular savings account options.
Apple Savings Account vs. Synchrony High-Yield Savings Account
The Synchrony High-Yield Savings Account proves to be one of the best savings accounts currently available. It boasts a 4.50% APY and offers the rare feature of an ATM card, providing immediate access to funds.
While both the Apple Savings Account and Synchrony High-Yield Savings Account have no monthly service fees and require a $0 minimum opening deposit, the Synchrony account offers a higher interest rate and greater flexibility in terms of accessibility. However, if you are an iPhone user with an Apple Card and feel comfortable using the Apple Wallet app, the Apple Savings Account may still be a convenient choice.
Apple Savings Account vs. Capital One 360 Performance Savings Account
The Capital One 360 Performance Savings account shares several similarities with the Apple Savings Account. Both accounts have no monthly service fees, require a $0 minimum opening deposit, and have no balance requirements. As of July 2023, the Capital One account offers a 4.30% APY.
Where the Capital One account sets itself apart is in its offering of other account types, including a free checking account and certificates of deposit (CDs) with competitive rates and no minimum deposit requirements. This versatility may make Capital One a more attractive option for individuals looking for a one-stop banking solution. However, loyal Apple users who value the convenience of an interconnected savings account tied to other Apple services may still find the Apple Savings Account appealing.
Why You Should Trust Us: How We Reviewed Apple Savings
Insight Bank utilizes a rigorous methodology to evaluate and review banking products like the Apple Savings Account. Our evaluation process considers factors such as customer support, mobile app functionality, ethical practices, and, specific to savings accounts, interest rates, service fees, and minimum opening deposits.
This comprehensive approach allows us to provide readers with unbiased and reliable information, empowering you to make informed decisions about your banking needs.
In conclusion, the Apple Savings Account offers Apple Card users a competitive interest rate, no minimum balance requirements, and a seamless integration with the Apple ecosystem. However, for non-Apple users or individuals seeking a wider range of banking options, there are better alternatives available.
Now armed with a deeper understanding of the Apple Savings Account, you can explore whether it aligns with your financial goals and preferences.