Apple expands fintech presence with digital savings account

Apple is offering holders of its Apple Card credit card alternative a new online banking option.

Apple Card has launched a digital savings account from Apple’s existing financial services partner Goldman Sachs. The account provides an annual percentage yield of 4.15%, which Apple says is more than 10 times the national average.

The new account requires no fees, no minimum deposits, and no minimum balance requirements. Apple Card holders can set up and manage their digital savings account directly from Apple Card in the iPhone Wallet app.

In addition, once they set up a savings account, all future Apple Card Daily Cash rewards will be automatically deposited in the account, with ability to send and spend rewards funds.

However, Apple Card users can select an alternate location to deposit Daily Cash rewards. They can also deposit additional funds into their savings account through a linked bank account, or from their Apple Cash balance.

Users will also have access to a savings dashboard in the Wallet app, where they can track their account balance and interest earned over time. Cardholders will be able to withdraw funds at any time through the Wallet dashboard by transferring them to a linked bank account or to their Apple Cash card, with no fees.

Apple nationally rolled out Apple Card in August 2019. Designed as an alternative to traditional credit cards, Apple Card is built into the Apple Wallet app on iPhone, connecting it to the Apple Pay digital payment service and providing users the ability to manage their card on their phone, with no card number, CVV security code, expiration date or signature.

The card comes with the Daily Cash cashback rewards program that gives back a percentage of every purchase as cash on customers’ Apple Cash card each day. Customers will receive 2% cashback every time they the card with Apple Pay, and 3% back on all purchases made directly with Apple.

“Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,” said Jennifer Bailey, Apple VP of Apple Pay and Apple Wallet. “Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place.”

[Read more: Following delay, Apple launches ‘buy now, pay later’ in the U.S.]