Apple Card Savings vs. Top High-Yield Savings Accounts: Which Offers Better Returns?

Essential Insights

• Apple introduced Apple Card Savings in April, featuring a 4.15% APY interest rate.
• Opening an Apple Card Savings account requires holding an Apple Card.
• More than a dozen top-tier high-yield savings accounts offer 5.15% APY or higher, with the leading national rate at 5.40% APY.
• Despite several Federal Reserve rate hikes over the past six months, Apple Card Savings has maintained a steady 4.15% APY.
• While Apple Card Savings provides seamless convenience for Apple Card users, switching to a high-yield savings account can significantly boost your interest income.

Back in April, Apple (AAPL) launched its Apple Card Savings account, allowing Apple Card holders to effortlessly grow their savings with a competitive interest rate. This account features no monthly fees, no minimum balance requirement, and an annual percentage yield (APY) of 4.15%.

However, Apple Card Savings is just one among many ways to grow your money. Our daily tracking of high-yield savings accounts reveals over a dozen options currently offering 5.15% APY or higher—at least a full percentage point above Apple’s rate. The top national high-yield savings account boasts an impressive 5.40% APY, enabling you to earn even more.

Money market accounts also present attractive rates, with the leading option paying 5.25% APY, slightly below the top high-yield savings accounts but still noteworthy.

The surge in savings rates stems from the Federal Reserve’s aggressive measures since March 2022 to tackle historically high inflation. With 11 rate hikes totaling a 5.25% increase, the federal funds rate has reached its highest point since 2001. This benchmark rate directly influences what banks offer on deposits, causing savings, money market, and certificate of deposit rates to soar.

So, which is the smarter choice for your savings: Apple Card Savings or a top high-yield savings account? Mathematically, accounts offering 5.15% to 5.40% APY clearly outperform Apple’s 4.15%. Transferring even a portion of your funds to these higher-yield accounts can substantially increase your interest earnings.

That said, convenience matters. If you already use an Apple Card and appreciate the simplicity of Apple Card Savings, the slight interest trade-off might be worthwhile. The impact depends on your balance: a $1,000 balance means roughly $10 less interest annually, while $25,000 could cost you $250 or more.

One downside for Apple savers is that Apple has not adjusted its rate in six months, even as top high-yield savings account rates have climbed. Future Federal Reserve rate changes could push top rates even higher.

We reached out to Apple for comments regarding potential future rate changes but have yet to receive a response.

Rate Collection and Ranking Methodology

Investopedia monitors rates from over 200 federally insured banks and credit unions nationwide every business day, compiling rankings for the best savings and certificate of deposit accounts. To qualify, institutions must be FDIC or NCUA insured, offer accounts with initial deposits under $25,000, and be available in at least 40 states. Credit unions requiring donations over $40 for membership are excluded. For comprehensive details, see our full methodology.

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