Apple-branded credit cards do things differently than some of the traditional cards we cover at TPG. Instead of providing rewards in the form of loyalty pointstech giants Apple Card offers its users cashback as part of what it calls Daily Cash.
Starting in the coming months, your cashback will be automatically deposited into a new high-yield savings account from Goldman Sachs, Apple announced today.
How will it work?
As you accrue interest, your available funds will increase over time, depending on the interest rates available when you signed up for the account.
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You’ll be able to open this new savings account directly from your iPhone in a future iOS update. It will have no fees, no minimum deposit and no minimum balance requirements, according to Apple. Only Apple Card holders and co-owners are eligible for this new savings account.
Neither Apple nor Goldman Sachs, which also issues the Apple Card, offer interest on the new savings account, but I imagine we’ll learn more about it when the account offering service comes out. Right now, Goldman Sachs suggestions 2.15% annual percentage interest on high yield savings accounts through Marcus.
When this new feature launches, you’ll be able to select your preferred destination for refunds directly in the Wallet app on your iPhone. If you choose a savings account, you will automatically start accruing interest on your Daily Cash with no additional steps or fees.
You can also top up this new savings account from sources other than your Daily Cash balance; this includes funds from a linked bank account or from your Apple Cash balance.
In addition, you will be able to withdraw your funds at any time without paying any fees. You’ll be able to manage your savings account from a new savings dashboard that includes your account balance and interest accrued over time.
With Apple Card, yes Unlimited cashback you get, and the bonus categories are simple and easy to understand. You receive:
- 3% Daily Cash on purchases made with Apple Pay with Apple and select merchants, including Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware.
- 2% cash back daily when using Apple Pay at other points of sale.
- 1% daily cash back on all other purchases.
Key point
Previously, Apple Card refunds went straight to the Apple Cash account associated with your device and Apple ID. From there, you can transfer funds to the linked bank account. From your bank account, you can invest the amount you see fit.
However, with Apple’s new innovative high-yield savings solution coming soon, earning your return will be much more seamless. This new savings account partnership with Goldman Sachs will launch in a future iOS update in the coming months, and we’ll be sure to update this story as more details become available.
This is the latest feature for Apple’s iOS Wallet experience. Earlier this year, Apple revealed a buy new now, pay later option – called Apple Pay Later – will be available to all iPhone users. This feature was originally supposed to launch with iOS 16 release, but it’s currently in a future iOS update, according to Apple. With Apple Pay Later, you’ll be able to split any Apple Pay purchase into four payments over six weeks with no interest or fees.
