Apple Inc. (AAPL) is making another adjustment to its Apple Card high-yield savings account, lowering the interest rate for the third time this year. Effective Friday, October 11th, the new annual percentage yield (APY) will be 4.10%, down from the previous 4.25%.
This latest reduction follows a similar move in late September, where the APY dropped from 4.4% to 4.25%. Earlier in April, the rate had been cut from 4.5% to 4.4%. The upcoming rate will be below the initial 4.15% APY that was introduced in April 2023.
These interest rate fluctuations are often influenced by adjustments made by the Federal Reserve. In September, the Federal Reserve implemented a significant 50 basis point reduction, and further cuts are anticipated according to policymakers. This has led other high-yield savings accounts, such as those offered by Discover, American Express, and Capital One, to also offer a 4.10% APY.
Apple’s savings account, which is accessible to Apple Card holders through the iPhone Wallet app, is a collaboration with Goldman Sachs. The account allows users to earn interest on their Daily Cash balance and funds transferred from bank accounts or Apple Cash. The account was initially launched in April 2023 with a competitive 4.15% APY, significantly higher than the national average of 0.35% at the time. This was part of Apple’s strategy to enhance its financial services offerings alongside Goldman Sachs.
Despite the recent reductions, the Apple Card savings account remains competitive. It’s important for Apple Card savings account holders to stay informed about these potential changes and how they might impact their savings strategy as interest rates continue to fluctuate.
