In comparison to certain conventional cards, Apple's credit card operates in a unique way.
The tech giant's Apple Card gives customers cash back as part of what it calls Daily Cash instead of offering benefits in the form of loyalty points.
Apple announced today that starting in the upcoming months, you will be able to have your cash back automatically put into a new Goldman Sachs high-yield savings account.
How it will operate
Depending on the interest rate offered upon account opening, your accessible cash will increase over time as you accumulate interest.
In a future iOS version, you'll be able to access this new savings account right from your iPhone.
According to Apple, there won't be any fees, minimum deposits, or balance limitations.
This new savings account will only be available to Apple Card owners and co-owners.
The interest rate for the new savings account was not disclosed by Apple or Goldman Sachs, which also issues the Apple Card, but I anticipate that information will become available as the debut date of the account approach.
For its high-yield savings accounts, Goldman Sachs currently provides a 2.15% annual percentage interest through Marcus.
You will be able to select your preferred cash-back destination in the Wallet app on your iPhone once this new functionality is available.
If you select a savings account, interest will begin to build up on your daily cash without any more processes or costs.
In addition to your Daily Cash amount, you can add money to this new savings account from other sources, such as your Apple Cash balance or monies from a linked bank account.
Additionally, you won't be charged any fees when withdrawing money at any moment.
A new savings dashboard that includes your account balance and interest that has accumulated over time will make it possible for you to manage your savings account.
You may earn as much cash back as you like with the Apple Card, and the bonus categories are clear and uncomplicated.
You obtain:
• Purchases made with Apple Pay at Apple and with a few retailers, such as Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware, will earn you 3% Daily Cash.
• When using Apple Pay at different retailers, you get 2% Daily Cash.
• On all other purchases, Daily Cash is 1%.
In conclusion
Cashback from the Apple Card has traditionally been sent immediately into the Apple Cash account connected to your device and Apple ID.
You could then transfer the funds into a connected bank account from there.
You could invest the funds from your bank account as you like.
However, it will be much easier to earn interest on your cash back once Apple's novel new high-yield savings solution launches soon.
A future iOS update will introduce this new Goldman Sachs savings account collaboration in the upcoming months, and we'll be sure to update this story as soon as further information becomes available.
This is the most recent addition to Apple's iOS Wallet functionality.
Apple launched a new buy now, pay later option earlier this year called Apple Pay Later, which will be made available to all iPhone customers.
Apple has stated that this functionality will now be included in a future iOS update rather than the initial iOS 16 release.
You may divide any Apple Pay purchase into four installments over a period of six weeks with Apple Pay Later and do so with no fees or interest.
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