Apple Savings gets first ever interest rate cut
William GallagherApple Savings users get a notification that their interest rate has been cut
As of April 3, 2024, the annual percentage yield for Apple Savings account users is 4.4%, down from its previous high of 4.5% set in January.
As predicted, the interest on Apple Savings has seen its first-ever cut. The move, while small, comes after a series of rises in quick succession at the end of 2023 and the start of 2024.
Originally launched in April 2023, what Apple described as a high-yield savings account was offering 4.15% APY. It wasn't an uncompetitive amount, but Apple Savings stayed on that level for eight months.
Then in December 2023, Apple made a move to catch up with the rest of the industry, at least a little, and increased it to 4.25%. Just over two weeks later in early January 2024, Apple again increased the rate, this time to 4.35%.
In what proved to be its last rise before this first-ever fall, Apple increased its interest rate to 4.5% in late January 2024. That put Apple Savings in roughly the middle of the market for similar account services at the time.
The new decrease to 4.4% doesn't materially change that position, but Apple has not — and will not — indicate whether this is a temporary cut, or the first of more.
Account holders will have been notified of the change by email. A banner notification is now also displayed when users check their Savings account on iPhones.
Mike Wuerthele
Andrew Orr
Marko Zivkovic
Wesley Hilliard
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2 Comments
Unless you purchase a fixed-rate certificate of deposit, savings options for individuals tend to be limited to savings accounts for which interest rates can vary as often as twice a month. Those rates go up and down with what it costs the bank to borrow money, and what it’s earning on its investments. If the Fed starts cutting its base rate this year, expect savings account rates to drop more sharply.
I’m in the UK and could only wish to have Apple Card or Apple savings over here with rates like 4.5% over the last few years.