Apple Savings to Lower Rates for First Time

After a series of increases in the past few months, Apple Savings (NASDAQ:AAPL) will lower the interest rate paid to account users.

The news was first revealed by MacRumors and a reader who tipped off the publication.

Reportedly, Apple will be dropping is APY from 4.5% to 4.4%. Even though the US Federal Reserve has not lowered its benchmark rates, it has messaged that it believes it will be lowering rates several times during 2024, thus causing markets to adjust.

While Apple Savings offers a far better rate than several big banks that offer negative real returns, the savings feature is less than that of some providers, like Jenius Bank, which currently offers a 5.25% return.

Apple Savings benefits from its simplicity and convenience and the fact that many millions of users in the US have iPhones due to their ubiquitous nature.

Apple recently increased its savings cap from $250,000 to $1 million, which may indicate demand for its services.

While Apple Savings has been a net positive for Apple, future Fintech features may drive more users to switch from traditional financial services firms and, perhaps, brokerages.



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