Apple's Current Banking Products
Apple does not offer a traditional savings account. Apple does offer Apple Card, a credit card issued through Goldman Sachs, and Apple Cash, a digital wallet for sending money and making purchases. Neither of these is a savings account where you deposit money and earn interest.
Apple also offers Apple Pay Later, which lets you split purchases into four equal payments over six weeks with no interest. This is a payment tool, not a place to save money.
If you are looking for a place to deposit money and watch it grow through interest, you will need to open an account at a bank or credit union instead. Apple's products are designed to help you spend and move money, not to hold it and earn returns.
Key Takeaways
- Apple does not offer savings accounts, checking accounts, or any deposit products where you can earn interest.
- Apple Cash is a digital wallet for sending money and making purchases, but money in Apple Cash does not earn interest.
- Apple Card is a credit card, not a savings tool, and carries interest charges if you carry a balance.
- To save money and earn interest, you need to open an account at a bank, credit union, or online savings provider.
What Apple Cash Actually Does
Apple Cash is a digital account that lives on your iPhone, Apple Watch, or Mac. You can add money to it from a debit card or bank account, then use that money to send to other people, pay bills, or make purchases in stores and online.
Think of it as a digital envelope of money you carry with you. The money sits there until you spend it or send it to someone else. It does not earn interest, and there is no minimum balance. You can withdraw the money back to your bank account at any time, usually within one to three business days.
Apple Cash is useful if you want a quick way to send money to friends or make contactless payments, but it is not a savings account. Money in Apple Cash is meant to be spent soon, not held for months or years.
Where to Actually Open a Savings Account
If you want to save money and earn interest, you have three main options: a traditional bank, an online bank, or a credit union.
Traditional banks are brick-and-mortar institutions where you can walk in and speak to someone. They offer savings accounts, checking accounts, and other products. Interest rates on savings accounts at traditional banks tend to be lower than at online banks, but you have the option to visit in person.
Online banks operate only through websites and apps. They typically offer higher interest rates on savings accounts because they have lower overhead costs. You cannot walk into a branch, but you can reach customer service by phone, email, or chat. Examples include Ally Bank, Marcus by Goldman Sachs, and Discover Bank, though there are many others.
Credit unions are member-owned financial institutions that often offer competitive interest rates and lower fees than banks. You must be a member to open an account, and membership is usually based on where you work, where you live, or a group you belong to. You can find credit unions in your area through the CO-OP Network or MyCreditUnion.org.
How Savings Accounts Earn Interest
When you open a savings account at a bank or credit union, the institution pays you interest on the money you deposit. The interest rate changes based on what the Federal Reserve does with its benchmark rate, so rates go up and down over time.
Interest is calculated as a percentage of your balance. If you have $1,000 in a savings account earning 4% annual percentage yield (APY), you would earn about $40 per year, paid monthly or daily depending on the bank. The more money you have in the account and the higher the interest rate, the more you earn.
Savings accounts are FDIC insured at banks and NCUA insured at credit unions, which means your money is protected up to $250,000 if the institution fails. This protection does not explore to Apple Cash or any money held in Apple's products.
Why Apple Does Not Offer Savings Accounts
Apple is a technology company, not a bank. Offering savings accounts would require Apple to become a bank, which means getting a banking license, following strict federal and state regulations, and holding customer deposits as liabilities on their balance sheet.
Apple has chosen to partner with banks instead. Goldman Sachs issues the Apple Card. If Apple ever offered a savings product, it would likely partner with an existing bank to handle the actual deposits and interest payments, similar to how other tech companies like Square and PayPal work with banks behind the scenes.
For now, Apple focuses on payment and spending tools. If you want to save money through Apple's ecosystem, you would use Apple Cash to hold money temporarily, then transfer it to a real savings account at a bank or credit union to earn interest.
Alternatives to Consider
If you use Apple products and want a straightforward savings experience, you have several options. Many online banks offer apps that work seamlessly with iPhones and other Apple devices. You can set up automatic transfers from your checking account to savings, which helps you save without thinking about it.
Some banks also offer high-yield savings accounts, which pay significantly more interest than traditional savings accounts. These accounts have no monthly fees and let you withdraw money whenever you need it, though there are limits on how many withdrawals you can make per month.
You can also use a combination of tools: keep everyday spending money in Apple Cash for convenience, and keep your savings in a high-yield savings account at an online bank where it earns interest. This way you get the speed and ease of Apple's products for daily life, plus the growth that comes from earning interest on money you are not spending right away.
Frequently Asked Questions
Does money in Apple Cash earn interest?
No. Apple Cash is a digital wallet for spending and sending money, not a savings account. Money in Apple Cash does not earn interest and is not meant to be held long-term. If you want your money to earn interest, transfer it to a savings account at a bank or credit union.
Is Apple Cash safe if the company fails?
Apple Cash is not FDIC insured like a bank savings account. However, Apple Cash is held in accounts at partner banks, so the underlying money does have some protection. Still, a savings account at a bank or credit union gives you explicit FDIC or NCUA insurance up to $250,000.
Can I use Apple Card as a savings account?
No. Apple Card is a credit card, which means you borrow money and pay it back with interest if you do not pay the full balance each month. It is not a place to save money. If you carry a balance on Apple Card, you will pay interest charges, not earn them.
What is the best way to save money if I use an iPhone?
Open a savings account at an online bank or credit union that has a strong iPhone app. Many online banks offer high interest rates and no monthly fees. You can set up automatic transfers from checking to savings, and check your balance anytime through the app. Use Apple Cash for everyday spending if you want, but keep your savings in a real savings account.
Can I link Apple Cash to a savings account?
You can link Apple Cash to a bank account or debit card to add money to it, and you can transfer money from Apple Cash back to a linked bank account. However, Apple Cash itself is not connected to a savings account in a way that earns interest. The transfer process usually takes one to three business days.