Apple is now gonna be a Bank
Once users set up their savings account through the Apple Card, future rewards from the card, called Daily Cash, can be deposited automatically into the savings account, Apple said. Users can also add their Daily Cash rewards to an Apple Cash card, which is a digital card in the wallet app that lets users send and receive money, the company said. Users can change the destination for their Daily Cash rewards at any time.
When Apple rolled out its credit card in partnership with Goldman Sachs it was a smart choice. Sometime before the card was launched , Goldman had introduced its High Yield Savings account Marcus - an online only bank account.
I have seen interest rates as low as 0.7% during the pandemic and as high as 2.35% as of this writing.
Interest is compounded daily and credited monthly to your account. Interest is calculated using the daily balance method. This method applies a daily periodic rate to the principal and interest that has accrued in the Account each day. This means that the interest from your Account is calculated every day on a 365-day year/ 366-day for leap years.
Apple is my default payment option when I’m paying by phone which is probably a very large part of my overall transaction. With a bank account now, they are going to make that ecosystem integration even more tighter.