Goldman Sachs recently announced an update to the Apple Card savings account, significantly increasing the maximum balance limit to $1 million. This change, which became effective on March 1, was communicated to cardholders via email.
According to the revised cardholder agreement, the new ceiling for account balances now includes interest and Daily Cash deposits, expanding the financial flexibility for users.
Previously, the account’s balance limit was set at $250,000, aligning with the maximum insurance coverage provided by the U.S. Federal Deposit Insurance Corporation (FDIC). This insurance is designed to protect depositors if Goldman Sachs were to fail.
With the new limit, amounts exceeding $250,000 and up to $1 million will not be insured by the FDIC.
This adjustment places the Apple Card savings account in a competitive position relative to other high-yield savings accounts in the United States.
For instance, Marcus, another high-yield savings account offered by Goldman Sachs, permits a maximum balance of $1 million per account, with a cumulative limit of $3 million across accounts.
Introduced in April 2023 through a collaboration between Apple and Goldman Sachs, the Apple Card savings account is accessible and manageable directly from the iPhone’s Wallet app. Notably, the account features no fees, minimum deposit requirements, or minimum balance stipulations.
Eligibility criteria include being an Apple Card holder, residing in the U.S., and being at least 18 years of age.
Account holders are afforded the opportunity to earn interest on their Daily Cash rewards and on funds transferred from a linked bank account or an Apple Cash balance.
The interest rate offered by Apple’s savings account is currently 4.5% APY, following an increase in late January.
To initiate a savings account within the Wallet app, users should navigate to their Apple Card, select the circle with three dots at the top of the screen, tap on Daily Cash, and then choose the “Set Up Savings” option.
There have been reports suggesting Goldman Sachs may conclude its partnership with Apple, although the potential effects on the Apple Card and its associated savings account remain uncertain.
