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Apple Card High-Yield Savings Account Getting Yet Another Interest Rate Cut

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Apple is once again planning to cut the interest rate of its Apple Card high-yield savings account, with the new rate set to go live on Friday, October 11.

apple-card-savings-account-16x9.jpg

The Apple Card savings account's annual percentage yield (APR) will drop to 4.10 percent, down from 4.25 percent. This is the third cut that Apple has made this year, and the second in the last few weeks.

Back in late September, Apple lowered the APY from 4.4 percent to 4.25 percent, and rates dropped from 4.5 percent to 4.4 percent in April.

At 4.10 percent, the Apple savings account APY will be below 4.15 APY that it launched with back in April 2023. Savings account interest rates fluctuate with changes made by the Federal Reserve, and when rates are lowered, banks cut their APYs. There was a notable rate cut of 50 basis points in September, and today, Federal Reserve policymakers suggested that more cuts are on the horizon.

Several other high-yield savings accounts from companies like Discover, American Express, and Capital One also now have a 4.10 APY.

Apple partners with Goldman Sachs for the Apple savings account. It is available for Apple Card holders, and can be managed through the iPhone Wallet app much like the Apple Card. The Apple savings account is designed to allow Apple Card users to earn interest on their Daily Cash balance, and on funds transferred from bank accounts or Apple Cash balances.

Earlier this month, Apple decreased the Apple Card APR range, and it is now at 18.74 percent to 28.99 percent, down from 19.24 percent to 29.49 percent.

Article Link: Apple Card High-Yield Savings Account Getting Yet Another Interest Rate Cut
 
Article Link
https://www.macrumors.com/2024/10/10/apple-card-savings-account-rate-cut/
Trying to figure out if it's worth it to move the savings I just started a couple months ago. Couple online banks are at 5%, but I'm sure they'll be cut soon too... New to all this.
 
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iObama said:
Trying to figure out if it's worth it to move the savings I just started a couple months ago. Couple online banks are at 5%, but I'm sure they'll be cut soon too... New to all this.
Click to expand...

Never have loyalty to any company - especially a bank. They are not loyal to you and will change policies, remove features, increase prices, or sell their business to a competitor on a whim.

This is especially true of banks and banking products. Always go with the lowest fees/highest savings rate. Most HISAs are fee-free these days anyway, so you can keep multiple accounts open and just move money into the one that gives the best return.

Companies make money by taking it away from you. Do whatever gets you the best deal, because if you don't, no company will ever do it for you.
 
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wikiverse said:
Never have loyalty to any company - especially a bank. They are not loyal to you and will change policies, remove features, increase prices, or sell their business to a competitor on a whim.

This is especially true of banks and banking products. Always go with the lowest fees/highest savings rate. Most HISAs are fee-free these days anyway, so you can keep multiple accounts open and just move money into the one that gives the best return.

Companies make money by taking it away from you. Do whatever gets you the best deal, because if you don't, no company will ever do it for you.
Click to expand...
Wikiverse has it right.
It's a numbers game for them. Make it a numbers game for you. I jump ship all the time in pursuit of better terms. It's all that matters.
 
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Keeping money in a savings account assures that you will lose money over time to inflation, as the interest is always lower than the inflation rate. That's the price you pay for FDIC insurance. Better to keep your money in a money market fund at a brokerage like Fidelity. Higher interest rates, free checking, credit card that yields 2% cash on every purchase, and a debit card that picks up out of network fees (if the ATM you use has Mastercard or Visa decals). And over more than 50 years, Fidelity has never broken the buck, even in the worst recessions.
 
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wikiverse said:
Never have loyalty to any company - especially a bank. They are not loyal to you and will change policies, remove features, increase prices, or sell their business to a competitor on a whim.

This is especially true of banks and banking products. Always go with the lowest fees/highest savings rate. Most HISAs are fee-free these days anyway, so you can keep multiple accounts open and just move money into the one that gives the best return.

Companies make money by taking it away from you. Do whatever gets you the best deal, because if you don't, no company will ever do it for you.
Click to expand...
Ah, that's a good idea, having multiple.

Apple Card has just been so easy and started my savings journey! But I'll look into this, thanks :)
 
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Ain't no thang. Still much better than what my primary bank is offering through my checking account. And it has been super easy to move money back and forth (not to mention the money moves instantly, which is a lot more than I can say of some of those high savings yield accounts I've had over the years.)
 
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cjboffoli97 said:
Ain't no thang. Still much better than what my primary bank is offering through my checking account. And it has been super easy to move money back and forth (not to mention the money moves instantly, which is a lot more than I can say of some of those high savings yield accounts I've had over the years.)
Click to expand...
This is one reason I'm hesitant to chase the highest %. Might leave a chunk in Apple Card for that reason and start saving more elsewhere.
 
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iObama said:
Trying to figure out if it's worth it to move the savings I just started a couple months ago. Couple online banks are at 5%, but I'm sure they'll be cut soon too... New to all this.
Click to expand...
High yield savings are usually pretty similar across platforms. It's rare you find one specific institution offering a drastically better rate than the competition because of how regulated things are. So If you're happy with where your money is now, keep it there.
 
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cjboffoli97 said:
Ain't no thang. Still much better than what my primary bank is offering through my checking account. And it has been super easy to move money back and forth (not to mention the money moves instantly, which is a lot more than I can say of some of those high savings yield accounts I've had over the years.)
Click to expand...

That's my experience. I keep a small balance in my primary bank's savings account just to keep the account open. If they pretend to pay interest, I'll pretend to care.

I am not constantly on the prowl for the absolute best interest rate (my meager balance really doesn't rate that effort) but since the Apple savings account offers high-enough interest and quick movement of money, the convenience is worth the difference between what I get now in interest and what I could with a higher rate at some other bank. When it dips again, I'll reconsider, but for now it's still good enough.
 
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iObama said:
This is one reason I'm hesitant to chase the highest %. Might leave a chunk in Apple Card for that reason and start saving more elsewhere.
Click to expand...

Ask yourself how frequently banks change rates that you would need to move money between them - at most every couple of months, and if it would ever be a problem to wait a couple of days for a transfer to clear.

Also figure out the difference between the rates. It might not be significant to move from 4.1% to 4.2%, but CIT bank offer 4.7% if you keep the minimum balance above $5000. So if you've got significantly more money than that and can maintain the 5000 minimum to get the 4.7%, it's likely worth switching.
 
iObama said:
Trying to figure out if it's worth it to move the savings I just started a couple months ago. Couple online banks are at 5%, but I'm sure they'll be cut soon too... New to all this.
Click to expand...
Move your money to whatever bank gives you the most interest. As long as you have less than $250,000 at any bank don’t worry as your account is insured by the government.
 
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