As of today (March 1, 2024), if you have an Apple Card, you may hold up to $1 million in your Apple Savings account. While there is no minimum amount needed to open an account, if you go over the $1M hurdle, Apple (NASDAQ:AAPL) will send the overage back to you via check.
Previously, the amount was capped at $250,000 – the FDIC insurance limit. If you surpass the $250K threshold ostensibly your money is not insuered. All savings accounts are actually held by Goldman Sachs.
Apple recently increased the savings rate from 4.35% to 4.50% in a push to increase the balances held as cash and to get more users. While Apple does not offer the highest bank savings rate available, several competitors offer rates over 5%; the sheer convenience of Apple Savings is a pretty good reason to take advantage of it if you are an Apple user.
Apple offers multiple Fintech services like Apple Cash, BNPL, and the Card, with more on the way. At one point, it was rumored an Apple Investments service was near. In the end, you need banking services, but you don’t really need a bank. And this is how Apple became one of the largest neobanks in the world.