Apple Card is a credit card, not a savings account

Apple Card is a credit card issued by Goldman Sachs, not a savings account. It lets you borrow money to make purchases and pay it back later. A savings account is where you deposit your own money and earn interest on it. These are two completely different financial products that do different things.

If you use Apple Card, you are taking on debt when you swipe it. The money you spend is not your own money sitting in an account — it belongs to Goldman Sachs until you pay the bill. A savings account holds your money and pays you interest for keeping it there.

Key Takeaways

  • Apple Card is a credit card that lets you borrow money, not a place to store your savings.
  • Goldman Sachs issues Apple Card and sets the terms; Apple does not run a bank.
  • You can earn cash back on purchases with Apple Card, but this is a reward, not interest on savings.
  • If you want to save money through Apple, you would need a separate savings account at a different bank.

What Apple Card actually does

Apple Card works like any other credit card. You link it to your Apple Wallet, use it to pay for things, and then pay back what you spent. The card offers cash back on purchases — 3% on Apple purchases, 2% on purchases made with Apple Pay, and 1% on everything else. This cash back lands in your Apple Cash account, which is a separate digital wallet, not a savings account.

Apple Card has no annual fee and no foreign transaction fees. You can see your balance and due date in the Wallet app on your iPhone. If you carry a balance month to month, you pay interest on what you owe — the rate varies based on your credit score and current market rates.

Apple Cash is not the same as a savings account

When you earn cash back on Apple Card purchases, it goes into Apple Cash, which is a digital wallet you can use to send money to other people or spend at stores and online. Apple Cash is convenient for moving money around, but it does not earn interest. Money sitting in Apple Cash earns zero percent.

A savings account at a bank pays you interest on the money you deposit. The rate varies by bank and changes over time, but as of 2024 many banks offer between 4% and 5% annual interest on savings accounts. Apple Cash offers nothing. If you want your money to grow, you need an actual savings account elsewhere.

Where to put savings if you use Apple Card

If you want to save money while using Apple Card for purchases, you need a separate savings account at a bank or credit union. You can open one at any bank — online banks like Marcus, Ally, or Wealthfront, or traditional banks like Chase or Bank of America. The account is separate from your Apple Card and your Apple Cash.

The workflow looks like this: you use Apple Card to buy things and earn cash back, that cash back lands in Apple Cash, and then you transfer it to your savings account at a bank where it earns interest. This takes an extra step, but it is the only way to earn interest on your money if you want to use Apple Card.

Why Apple does not offer savings accounts

Apple is a technology company, not a bank. To offer savings accounts, Apple would need to become a bank or partner with one to hold customer deposits. Apple has chosen not to do this. Instead, it partnered with Goldman Sachs to issue the credit card and with Green Dot Bank to run Apple Cash.

This matters because it means Apple Card is designed to make money for Apple and Goldman Sachs when you borrow and carry a balance. A savings account would require Apple to pay you interest, which cuts into profit. The business model does not align with offering savings.

How to compare Apple Card to other credit cards

If you are choosing between Apple Card and another credit card, the main differences are the cash back rates, the annual fee, and the interest rate you pay if you carry a balance. Apple Card has no annual fee, which is common among cash back cards. The cash back rates — 3%, 2%, and 1% — are competitive but not the highest available.

Some other cards offer 5% cash back on certain categories like groceries or gas, or flat 2% on everything. The best card for you depends on where you spend most of your money. If you spend heavily on Apple products and services, Apple Card makes sense. If you spend more at grocery stores or gas stations, a different card might earn you more cash back.

Frequently Asked Questions

Can I earn interest on money in Apple Cash?

No. Apple Cash is a digital wallet, not a savings account. Money in Apple Cash earns zero interest. To earn interest on your money, you need to move it to a savings account at a bank.

Does Apple Card help me build savings?

Apple Card itself does not help you save — it is a way to borrow money. The cash back you earn can help you save if you transfer it to a savings account instead of spending it. But the card itself is a debt product, not a savings tool.

What bank issues Apple Card?

Goldman Sachs issues Apple Card. Apple does not issue it. Goldman Sachs sets the interest rates, credit limits, and terms. Apple handles the user interface through the Wallet app.

Can I use Apple Card to open a savings account?

No. Apple Card and a savings account are separate products from different companies. You would need to open a savings account directly with a bank, separate from your Apple Card.

What happens to my cash back if I close my Apple Card?

Cash back that has already landed in your Apple Cash account stays there. You can still use Apple Cash to spend it or transfer it to a bank account. But you will stop earning new cash back once the card is closed.