The nearly 125 million iPhone users in the U.S. got another inducement from Apple recently — a convenient way to save their money. Saving money can be particularly important if the U.S economy slides into a recession, as many economists are predicting. Recession or not, saving is always important. As Warren Buffet said, “Do not save what is left after spending, but spend what is left after saving.”
“Savings helps our users get even more value out of their favorite Apple Card benefit — daily cash — while providing them with an easy way to save money every day,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in a statement. “Our goal is to build tools that help users lead healthier financial lives, and building savings into the Apple Card in Wallet enables them to spend, send, and save daily cash directly and seamlessly — all from one place.”
The Apple savings account through Goldman Sachs is FDIC insured. Once a savings account is set up, all future daily cash earned by the user will be automatically deposited into the account. The daily cash destination can be changed at any time. And there’s no limit to how much daily cash users can earn.
However, you don’t need to own an iPhone to set up a high-yield savings account. Apple has some rivals in this marketplace who are offering higher interest rates. The highest savings yields in the Bankrate database are now approaching 5%, according to Ted Rossman, senior advisor at Bankrate.com. That includes UFB Direct, which introduced a 5.02% rate in recent weeks, though has since lowered it to 4.81%. It’s still one of the best deals available.
Bankrate gives the Apple Card high marks as a no-fee rewards credit card, and the convenience of having a high-yield savings account for a cardholder’s cash rewards may be appealing. However, what goes up can come down, including Apple’s rate of return. The Federal Reserve has been raising interest rates to tame inflation, but eventually that will end. If you want a steady return, you can purchase a bank Certificate of Deposit (CD), The top-yielding 1-year CD now pays 5.2% — and that rate can be locked in for seven months or one year.
Many economists are predicting a recession later this year. Whether that occurs or not is still unclear. Consumers are still spending, but that would ebb in a recession. Saving money via Apple or a rival, as well as buying a CD are all good things to consider.
We Can Help
This is what we do here at Barnum Financial Group — Help you make decisions to potentially put your financial situation in the best place possible. Our financial professionals can provide you with any information you might need to determine a confident course of action. Contact us today!