Is Apple’s high-yield savings account worth it?

Apple unveiled a new high-yield savings account designed for Apple Card users this week, and it offers some pretty competitive features. For savers, high-yield savings accounts like this one can be a great way to boost balances while staying secure.

For no monthly fees or minimum deposit, you can earn 4.15% APY on your savings with the Apple savings account and “Daily Cash” rewards you earn with the Apple Card will automatically be deposited. 

If you’re already an Apple Card user, this new savings account option could be a nice perk, says Kim Hall, CFP, director of financial planning and co-owner of Clarity Wealth Development. “That being said, there are other high yield savings accounts that are offering comparable, or better, rates.” 

A high-yield savings account is a safe place to keep your money, and today’s great interest rates — combined with easy access and lack of fees — make them even more appealing for savers today. But it’s important to do your own research and compare different accounts and interest rates that may fit your individual needs.

Here’s why opening a high-yield savings account is absolutely worth it today, and what to look for before you open one.

Before you get started, compare some of today’s top savings account rates now.

3 benefits of opening a high-yield savings account today

“The important thing to remember with any type of savings account is how it fits into your own financial picture — you want to make it easy to save while earning good interest on your savings,” Hall says. “So if the Apple option makes it easier for you, great! If it makes it more complicated, you might want to consider other options.”

These are a few of the best reasons to start saving with a high-yield account now:

Interest rates are high

Over the past year, the Federal Reserve has increased its target federal funds rate range from near-zero to around 5%. And while it has made borrowing more expensive (like APRs on credit cards or mortgage interest rates), it’s also increased the benefits of saving.

Today, many online banks and credit unions offer high-yield savings accounts with interest rates higher than they’ve been in years.

“Traditional savings accounts pay little interest and are basically the electronic version of putting your money under a mattress,” says Alison James, CFP, founder of WorthWise Financial Partners. “High-yield savings accounts are currently paying upwards of 3.5% or 4%, helping you keep pace with inflation while offering the peace of mind that comes with FDIC-insured deposit protection.”

Just remember that the interest rates on these accounts are variable — so they won’t stay this high forever. When federal interest rates go down, there’s a good chance that savings rates will too. That’s why now is a great time to save, so you can earn as much interest with today’s high rates for a longer time than you would if you wait.

Explore high-yield savings options available now with competitive rates and terms.

You can automate and save more

One of the big benefits of Apple’s new savings account for Apple Card users is the ability to automatically move your “Daily Cash rewards” into your savings. This is a great strategy to help you save more — if the money goes to your savings automatically, you won’t even have a chance to miss it before it’s in your account.

But plenty of other high-yield savings options offer similar automated savings features. With many accounts, you can set up automatic electronic transfers from another account to your savings at intervals you choose.

For example, say you want to put aside $200 when you get paid every two weeks. You can set up a biweekly transfer from your checking account to your savings account, so when your paycheck is deposited, the money will simply move to your savings without you having to think about it.

Protect yourself for the future

One of the best things to use your high-yield savings account for is as an emergency fund.

This is an amount of savings (ideally a few months’ worth of expenses) set aside specifically for unexpected expenses or periods of financial hardship, such as losing a job.

Especially during today’s uncertain economic climate, having a solid savings balance, bolstered by great interest earnings, can be a great way to protect yourself against any potential recession or emergency expenses you may incur in the future. 

And because high-yield savings accounts are highly liquid and accessible, they’re a great place to keep your savings. You can access your money at any time and easily transfer it to another account whenever you need.

Learn more about some of the best high-yield savings accounts today, including interest rates and account features.

The bottom line

“Overall, high-yield savings accounts are a useful tool for almost anyone and a great way to be prepared for unexpected or occasional expenses while earning a decent amount of interest,” James says.

Apple’s new savings account for Apple Card users may be worth it depending on your personal situation and the account details you’re looking for. But don’t forget to review all of your options, including availanlr accounts that may have higher interest rates, better terms or more features suited to your savings goals.

To get started, use the table below to compare some of today’s top-earning high-yield savings accounts.