In a significant move, Goldman Sachs has increased the balance limit for the Apple Card savings account to an impressive $1 million. The announcement, made through an email notification to cardholders, marks a substantial leap from the previous limit of $250,000. This enhancement provides Apple Card users with even greater flexibility and potential for savings within their accounts.
Expanded Savings Potential: Details from the Updated Cardholder Agreement
Effective March 1, the updated Apple Card cardholder agreement outlines the new maximum balance limit of $1 million. This limit is determined based on the cardholder’s Current Balance, including interest and Daily Cash deposits. The revision aims to empower Apple Card users with a higher cap for their savings, offering increased financial security and options.
FDIC Coverage and Comparison with Other Savings Accounts
The initial balance limit of $250,000 was tied to the maximum coverage provided by the U.S. Federal Deposit Insurance Corporation (FDIC) in the event of financial institution insolvency. With the new $1 million limit, any deposits exceeding $250,000 would not be covered by the FDIC in the case of bank failure. Notably, some other high-yield savings accounts in the U.S., such as Goldman Sachs’ Marcus, also feature a $1 million balance limit per account, up to a total of $3 million.
Apple Card Savings Account Overview and Features
Apple introduced its savings account in collaboration with Goldman Sachs in April 2023. Managed directly within the Wallet app on the iPhone, the account offers cardholders a fee-free and hassle-free savings experience. With no minimum deposits or balance requirements, Apple Card users, aged 18 and above, can open and maintain an account.
The savings account enables users to earn interest on their Daily Cash cashback balance and funds deposited from a linked bank account or an Apple Cash balance. Following a late January increase, the account currently boasts a competitive 4.5% Annual Percentage Yield (APY).
To set up the savings account in the Wallet app, Apple Card holders can navigate to their Apple Card, tap the circle with three dots at the top of the screen, select Daily Cash, and choose Set Up Savings.
While Goldman Sachs has reportedly planned to terminate its partnership with Apple, the impact on the Apple Card and associated savings account remains uncertain.
