Banking: Apple savings account launches for cardholders, with 4.15% interest rate

United States

Users of Apple Inc.’s cobranded credit card with Goldman Sachs can officially start parking their rewards in a linked savings account, the consumer-electronics giant announced Monday.

Those using the Apple Card can put their Daily Cash cash-back rewards into a savings account offered by Goldman Sachs Group Inc. GS, +0.82% that has a 4.15% annual percentage yield. There are no fees, minimum deposits, or balance requirements for the account, which users can manage through Apple’s AAPL, +0.01% Wallet app.

After users set up the savings account, future Daily Cash rewards will automatically go there, though cardholders can switch up the rewards destination. Users can also hold additional funds in the savings account by linking to a bank account or depositing from their Apple Cash balances.

Apple teased the debut of the savings account back in October. It marks the smartphone company’s latest foray into financial services, behind tools like Apple Pay, Apple Cash, the Apple Card, and a buy-now-pay-later offering that is starting to roll out.

The most successful of those endeavors has been Apple Pay, which got off to a slow start but found its footing during the pandemic, as consumers embraced contactless payments and more businesses moved to accept the payment option.

When the company announced its Apple Pay Later BNPL offering, it disclosed that it would be taking on lending functions itself through an in-house finance unit, and Apple is thought to be interested in diving deeper into financial services, including potential new financing options for iPhones and other devices. But the BNPL service has rolled out more slowly than initially anticipated, perhaps signaling the difficulties of the company’s ambitions in the financial field.