Apple Card Savings customers are earning less again as the account's annual percentage yield falls to a new low of 3.4%, extending a series of rate cuts that have reduced returns for savers.
Customer notifications show the annual percentage yield has fallen from 3.5% to 3.4%, marking the latest reduction for the savings account.
Users began reporting notifications of the change on June 4, adding another entry to the growing list of rate cuts affecting Apple Card Savings. The high-yield savings account, which launched in 2023 with a 4.15% annual percentage yield, is offered through Goldman Sachs and integrated into the Wallet app.
Apple Card Savings lets users deposit Daily Cash rewards directly into a savings account and manage their money through the Wallet app. Goldman Sachs operates the savings account, while Apple handles the customer experience through Wallet.
Why Apple Card Savings rates keep falling
Savings account rates often move after the Federal Reserve changes its benchmark interest rate. Banks generally paid higher yields when benchmark rates were higher, and many have reduced those yields following Federal Reserve rate cuts.
The Federal Reserve has cut rates to support economic activity and keep inflation moving toward its long-term 2% target. Many consumers have yet to see meaningful relief from everyday expenses from other global economic factors, even as savings yields continue to fall.
Savers often feel the effects of rate cuts more quickly than borrowers because banks can reduce savings yields soon after the Federal Reserve lowers rates. Borrowing costs don't always follow the same path, and mortgage rates, auto loans, and other forms of debt can remain elevated.
Apple Card Savings launched with a 4.15% annual percentage yield in 2023. The account now pays 3.4%.
Still, Apple Card Savings still offers automatic Daily Cash deposits and integration with the Wallet app. Those features remain a key part of the account's appeal despite the latest reduction in yield.
