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Last spring, amid high (and rising) interest rates, many people turned to savings accounts to help buffer higher borrowing costs. By opening a certificate of deposit (CD) or high-yield savings account, you were likely to earn many times more interest than you would have by simply leaving your money in a regular savings account, the latter of which still comes with an APY under 0.50%. During this time many savers turned to tech giant Apple and its high-yield savings account for qualified Apple care users.
The account came with a 4.15% APY, no fees and no minimum balance requirements. And that APY has only increased in 2024, now sitting at 4.50%. Plus, according to Apple, users will get up to 3% daily cash back on every purchase they make. While an Apple savings account is then worth opening in 2024, there are some compelling reasons why savers will first want to shop around before settling on a lender.
See how much more you could be earning with a top high-yield savings account here now.
Is the Apple savings account worth opening in 2024?
Sure, the Apple savings account is still worth opening in 2024 for all of the above reasons. That said, you may want to consider some alternatives, too. Here’s why:
You could get a higher interest rate
While a 4.50% interest rate on a savings account is competitive — especially compared to the minimal 0.47% average most can get with a regular savings account— it may not be the very highest you can get right now. If you shop around, you could find a high-yield savings account with an APY of 5% or even above 6%.
That higher rate could lead to significantly more earnings over time, especially if the Federal Reserve keeps the benchmark interest range the same, as many are expecting this week.
Start exploring your high-yield savings account options today.
The alternatives may be even higher
While rates on both high-yield savings accounts and CDs are comparable right now, if the interest rate is your top priority then you should also explore the latter account type. Rates on CDs, particularly short-term ones, are high right now and often a bit better than the best high-yield savings accounts. But savers will need to be comfortable locking their money away for a full CD term (or risk being penalized for early withdrawal) to truly reap the benefits of this account type.
See what CD rate you could get today.
You’ll need to be an Apple user
Millions of Americans use Apple’s products and services but if you’re not one of them then you won’t be eligible to open an account. For this reason, you may be better served shopping online to find a lender who can offer you the best combination of a high rate and little (or no fees).
You may even be able to use the lender you already do your banking with, although you’ll generally discover more favorable terms with online banks. Since these institutions don’t have to deal with the overhead costs of maintaining physical branches they’re often able to pass on those savings to account holders in the form of higher rates.
The bottom line
While the Apple savings account has multiple attractive features for users it’s not the only option worth investigating in today’s high rate climate. You may be able to get a better return with a different lender or by opening a CD instead. Plus, you’ll need to be an Apple user to be eligible. If you’re not, you’ll have to look at other options. As usual, however, be sure to weigh the benefits of any interest rate against any maintenance or balance fees in order to ensure that your savings grow uninterrupted.
Matt Richardson is the managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
