Apple has surprised Apple Card users by raising interest rates for the second time in the same month.
The savings accounts associated with Apple Card will now earn an impressive 4.5% interest rate, making it a more appealing option for users seeking to grow their money, according to 9to5Mac.
A Closer Look
Starting at 4.25% in December 2023, the interest rate gradually increased to 4.35% in early January, eventually reaching 4.5%. Phone Arena tells us that for users with a $1000 balance, this boost translates to an additional $45 after one year—an appealing prospect given that the account has no associated fees.
However, the financial world is known for its unpredictability, and the report correctly notes that these interest rates are subject to change based on the Federal Reserve's actions and the state of the economy as a whole. Users are reminded that they can move their money elsewhere if they wish.
Apple Changing Partnerships
Behind the scenes, a significant shift is underway. Apple's partnership with Goldman Sachs, the financial powerhouse behind the Apple Card, is reportedly coming to an end.
Despite a contractual agreement that runs until 2029, Apple is actively looking into alternatives to transition away from Goldman Sachs within the next year.
This development, however, does not indicate problems for potential Apple Card users. 9to5Mac tells us that users' funds are secure, and the Federal Deposit Insurance Corporation guarantees deposits of up to $250,000 per account holder.
Limited-Time Bonuses for Apple Card Holders
To sweeten the deal for current and potential Apple Card holders, Apple is offering a limited-time promotion.
Subscribers to Apple TV+, Apple Music, Apple Arcade, Apple Fitness+, or Apple News+ are eligible for three free months of each service. Even those previously subscribed can cash in on this offer, albeit with a slightly shorter two-month free trial.
Apple has consistently raised interest rates since its foray into the savings account market. However, reports advise users not to assume that this trend will continue indefinitely.
In Other News
As reported by Bloomberg's Mark Gurman in his most recent Power On Newsletter, the upcoming iPhone operating system update, iOS 18, will be the "biggest" update ever for the smartphone.
Gurman first claimed this in November, and the renowned analyst's statement has remained unchanged since then. One of the main focuses of this update will be the AI features that will be added to the device, with Siri being the focal point of the company's development efforts.
Still, it is not the only aspect of iOS to get the said major update, as more is expected from iOS 18 to be delivered to users in the future. The first WWDC 2024 is being introduced in June.
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