Yesterday, Apple announced that their Apple Card users will soon be able to grow their Daily Cash rewards and also store them in a high-yielding savings account.
According to the tech giant, Apple Card users will be able to open their new savings account with absolutely no fees, no minimum deposits, and no minimum balance requirements in a few months time. Also, Apple did not mention what the interest rate for Daily Cash balances will be.
In the meantime, Goldman Sachs has been repositioning itself as a more traditional bank with its product, Marcus, which was revealed last year that it had achieved a milestone of more than $100 billion in customer deposits after five years of operations. Their collaboration with Apple will give them a new perspective on the customer deposits market.
Apple users will have the ability to manage their new high-yielding savings account through the Wallet app, just like all Apple Card features. Once the account has been created, all Daily Cash received will be immediately accumulated into it, unless the user decides to continue having it flown to their Apple Cash card. Users can also modify where their grown Daily Cash is being sent at.
“Savings enables Apple Card users to grow their Daily Cash rewards over time, while also saving for the future,” said Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet. “Savings delivers even more value to users’ favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead healthier financial lives.”
Apple users can also transfer their additional funds into their Savings account via a linked bank account or just from their Apple Cash balance to further expand Savings. Users could also withdraw their deposited funds at any moment by transporting them to a connected bank account as well as their Apple Cash card, with absolutely no fees. Once arranged, Apple Card users can view their rewards in Wallet using a simple Savings dashboard that displays their current balance and interest accumulated over time.
Apple Card also offers 2% Daily Cash on all Apple Pay purchases and 3% Daily Cash at select stores such as Apple, Uber, Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware. Apple Card users who choose the savings account option will be allowed to automatically earn interest on their Daily Cash, enabling the amount to accumulate over time.
Apple Card was launched way back in 2019, and it still remains exclusive to the United States. The tech giant’s credit card can be managed completely through the Wallet app on the iPhone, with a physical version available for use at stores that do not accept contactless payments. Daily Cash is limited to 1% for purchases made with the physical Apple Card.