Is Apple’s High Yield Savings Account Worth It?
The recently launched Apple High Yield Savings Account has already caught the eye of many savers.
It offers quite competitive features: with no monthly fee or minimum deposit, you can earn 4.15% APY on your savings with the Apple savings account. The account is designed for Apple Card users, and the “Daily Cash” rewards you earn with the card are automatically deposited into your balance.
If you’re already an Apple Card user, the new savings account could be an added benefit, says Kim Hall, CFP, director of financial planning and co-owner of Clarity Wealth Development. “That being said, there are other high-yield savings accounts that offer comparable or even better rates.”
In fact, some accounts today offer more than 4.5% APY on your savings balance. But it is important to do your own research and compare different accounts with features and interest rates that can meet your individual needs. Whether you choose Apple or another optionhere’s why opening a high-yield savings account is so worth it today.
Before you start, compare some of the best savings account rates today.
Benefits of High Yield Savings Accounts Today
A high yield savings account is a safe place to keep your moneyand today advantageous interest rates – combined with easy access and no fees – make them even more attractive to savers today.
“The important thing to remember with any type of savings account is how it fits into your own financial situation — you want to make it easy to save while earning good interest on your savings,” says Hall. “So if the Apple option makes it easier for you, great! If it makes it harder, you might want to consider other options.”
Here are some of the best reasons to start saving now with a high yield account:
Attractive interest rates
Over the past year, the Federal Reserve has raised its target federal funds rate range from near zero to more than 5%. And although the rate hikes have made borrowing more expensive, they have benefited savers.
Today, interest rates on high-yield savings accounts are higher than they have been in years — and much higher than regular savings.
“Traditional savings accounts pay little interest and are essentially the electronic version of putting your money under a mattress,” says Alison James, CFP, founder of WorthWise Financial Partners. “High Yield Savings Accounts currently pay over 3.5% or 4%, helping you keep up with inflation while providing the peace of mind that comes with the deposit protection provided by the FDIC.”
Remember that the interest rates on these accounts are variable, so they won’t stay that high forever. When federal interest rates drop, chances are savings rates will also drop. That is why it’s time to saveso you can benefit from today’s high rates longer than you would if you waited.
Explore the high-yield savings options available now with competitive rates and terms.
Protect your financial future
One of the best uses of your High Yield Savings Account is to create a emergency fund.
It’s a savings amount (ideally a few months of expenses) set aside specifically for unforeseen expenses or times of financial hardship, such as the loss of a job.
Especially with the likelihood of a recession and economic downturn, having a strong savings balancebacked by significant interest income, can be a great way to protect against any potential recession or emergency expenses you may incur in the future.
High-yield savings accounts are particularly well suited to your emergency fund because they are highly liquid and accessible. You can withdraw your money at any time and easily transfer it to another account when you need it.
Automation helps increase savings
One of the big Benefits of Apple’s New Savings Account for Apple Card users, it’s the ability to automatically transfer your “daily cash rewards” into your savings. But many other high-yield savings options offer similar automated savings features. With many accounts, you can set up automatic electronic transfers from another account to your savings at intervals you choose.
For example, let’s say you want to set aside $200 when you get paid every two weeks. You can set up a bi-weekly transfer from your checking account to your savings account and the money will simply be moved to your savings without you having to think about it.
It’s a great strategy to help you save more — if the money automatically goes into your savings, you won’t even have the chance to miss it before it’s in your account.
Learn more about the best high yield savings accounts today.
The bottom line
“Overall, high-yield savings accounts are a useful tool for almost anyone and a great way to prepare for unexpected or occasional expenses while earning a decent amount of interest,” says James.
Apple’s new savings account for Apple Card users may be worth it depending on your personal situation and the account details you are looking for. But don’t forget to explore all your optionsincluding accounts that may have higher interest ratesbetter terms or more features tailored to your savings goals.
To get started, use the chart below to compare some of today’s highest-paying high-yield savings accounts.