Apple Launches a New High-Yield Savings Account

Tech giant Apple (AAPL) has made another foray into the world of finance with a high-yield savings plan, following on from its Buy Now Pay Later (BNPL) product.

High Yield But Not The Highest, Plus Limitations

The company said Apple Card users can grow their Daily Cash rewards with a savings account provided by Goldman Sachs (GS) starting Monday. The account has a yield APY of 4.15%, which is more than 11 times higher than the Federal Deposit Insurance Corp.'s current reported national average.

According to Investopedia research, the highest rate available on a savings account is 5.02% from CFG Bank. The FDIC said the national average for savings accounts is 0.37% APY.

While there is no minimum deposit required, this account also comes with some limitations. The maximum balance allowed on such accounts is $250,000 and any transfers into the account that take you over that limit risk rejection.

You can also transfer funds in and out of this account using Apple Cash but those are subject to a minimum of a dollar and a maximum of $10,000 per transfer. You are also limited to transferring no more than $20,000 using Apple Cash over a seven day period.

There are eligibility requirements and limitations. Potential customers should consider how Apple's account compares to other high-yield savings accounts.

Apple Cements Its Finance Foray

The move comes on the heels of Apple’s launch of a Buy Now Pay Later product, where consumers can spread an Apple purchase over four payments direct from the wallet.

The collaboration with Goldman Sachs follows the investment bank’s provision of a credit card to Apple users.

Goldman previously tried to launch a consumer-focused brand, but CEO David Solomon said the company was forced to announce a pivot away from the retail push late last year, saying the consumer business “doesn’t make money at the moment.”

The credit card deal with Apple customers also didn’t carry the level of balances the bank had expected so it remains to be seen how much traction Apple can get.

Apple is likely looking for new ideas to keep its customers closer to its products and may benefit from the fact that it is not a bank. With the recent trouble in the regional banking sector, consumers could consider Apple a safe haven for their money because of its stable customer base and large amount of cash holdings.