What the Tech: Apple saving accounts

LANSING, Mich. (WILX) - A traditional bank offers savings accounts we are all familiar with. High-yield savings accounts are from online banks. No physical locations and you do all of the banking over the phone.

Here’s what else you need to know about Apple’s new savings accounts before you open one.

Apple’s savings accounts are through Goldman Sachs, the same bank behind Apple’s credit cards. It’s a high-yield savings account that’s currently 4.15%. Traditional bank savings accounts are around .35%.

That makes a big difference over the course of time. $1,000 in a traditional savings account will earn around $3.50 a year in interest. In a high-yield savings account like Apple’s, the same $1,000 will earn $41.50 a year in interest.

Apple savings accounts are connected to customers with Apple credit cards which earn about 2% cash back. Not as much as some other credit cards offering miles and points. But, the cash earned using an Apple credit card can automatically be deposited into the Apple savings account

To apply for a savings account, customers must have an Apple credit card. In the wallet app, tap Daily Cash where you’ll see an option to open a savings account.

The big question: is an Apple savings account safe?

Like most other high-yield accounts it is FDIC-insured up to $250,000. Apple insists security for credit cards, Apple Pay, and now Apple Savings are top-notch, requiring Face ID to conduct transactions.

Remember If you do any banking with your phone, a tablet or computer never do banking over a public wifi network, and use strong passwords you don’t use for any other account.

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