Apple has introduced a price cut on the interest rate on savings accounts for Apple Card holders. The latest move will affect consumers who store their cash in the high-yield savings feature tied to the Apple Card service. While the account still provides a competitive return compared to traditional banks, the latest change reflects a wider trend of reduced rates across financial products in the sector.
Apple has reduced the interest on the Apple Card savings account by 0.15 percent
Earlier, the users used to receive an interest rate of 3.65 percent. However, Apple has now applied a cut of 0.15 percent on the interest rate of the Apple Card savings account holders, which effectively goes down to 3.50 percent. The Cupertino tech giant recently sent push notifications regarding the cut to Apple Card users.
For those unaware, the interest rates of the savings accounts often fluctuate with changes made by the Federal Reserve. When the rates are cut, partnering banks of financial services reduce their annual percentage yield (APY). The latest cut for the Apple Card holders doesn’t appear tied to a specific Federal Reserve move.
However, the new 3.50 percent return remains competitive compared to many physical banks. Apple rival Samsung could also launch a Galaxy Credit Card soon, but there’s no word regarding its features at the moment.
You can find confirmation of the price cut on interest rates inside the Apple Wallet application under your Apple Card > Savings Account. As we’ve mentioned above, Apple will already send you a push notification for the change.
Chase will become the new issuer of Apple Card
In related news, earlier in January, Apple and Chase announced that the latter will become the new issuer of Apple Card. Right now, Goldman Sachs is Apple’s banking partner for the financial services related to the Apple Card feature. JPMorgan Chase is going to take over the operation in nearly two years. Besides the new partnership, Chase will also introduce a new Apple savings account.
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