Apple's branded credit card does things differently from some of the traditional cards we cover at TPG. Instead of providing rewards in the form of loyalty points, the tech giant's Apple Card gives users cash back as part of what it calls Daily Cash.
Starting in the coming months, your cash back will be able to be automatically deposited into a new high-yield savings account from Goldman Sachs, Apple announced today.
How it will work
As you accrue interest, your available cash will grow over time, depending on the interest rate available when you sign up for an account.
You'll be able to open this new savings account directly from your iPhone in a future iOS update. It will have no fees, no minimum deposits and no minimum balance requirements, according to Apple. Only Apple Card owners and co-owners will be eligible for this new savings account.
Neither Apple nor Goldman Sachs, which also issues the Apple Card, provided the interest rate for the new savings account, but I imagine we'll learn more about it as the account offering gets closer to launch. Right now, Goldman Sachs offers a 2.15% annual percentage yield for its high-yield savings accounts through Marcus.
When this new feature launches, you'll be able to choose your preferred destination for your cash back directly in the Wallet app on your iPhone. If you choose a savings account, then you'll automatically start accruing interest on your Daily Cash with no additional steps or fees involved.
You can also top off this new savings account with additional funds from other sources in addition to your Daily Cash balance; this includes money from a linked bank account or from your Apple Cash balance.
Plus, you'll be able to withdraw funds at any time without any fees. Managing your savings account will be possible from a new savings dashboard that will include your account balance and interest accrued over time.
With the Apple Card, there's no limit to the amount of cash back you receive, and the bonus categories are simple and easy to understand. You receive:
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- 3% Daily Cash on purchases made using Apple Pay with Apple and select merchants, including Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil and Ace Hardware.
- 2% Daily Cash when using Apple Pay at other merchants.
- 1% Daily Cash on all other purchases.
Bottom line
Historically, cash back from the Apple Card went directly into the Apple Cash account that's linked to your device and Apple ID. From there, you could transfer the money into a linked bank account. From your bank account, you could invest the money as you see fit.
However, with Apple’s innovative new high-yield savings solution launching soon, it’ll be much more seamless to earn interest on your cash back. This new savings account partnership with Goldman Sachs will launch in the coming months in a future iOS update, and we'll be sure to update this story when more details are available.
This is the latest new feature to come to Apple's iOS Wallet experience. Earlier this year, Apple unveiled a new buy now, pay later option — dubbed Apple Pay Later — that'll become available for all iPhone users. This feature was originally supposed to debut with the release of iOS 16, but it's now coming in a future iOS update, according to Apple. With Apple Pay Later, you'll be able to split any Apple Pay purchase into four payments over six weeks with no interest or fees.
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The most important thing to know about the Apple Card’s cash back program is that it awards cardholders with 1 - 3% cash back, depending on the type of purchase. Another good thing to know is that the Apple Card’s cash back program distributes rewards on a daily basis. The same day a purchase processes, you will receive the cash back for that purchase. It’s also worth noting that there’s no limit to the amount of cash back the cardholders can earn.
Still, there are more things you should know about how the card's cash back program works. You can check them out below.
5 Key Things To Know About The Apple Card’s Cash Back Program
1. Apple Card Cash Back Rewards
- Every time customers use Apple Card with Apple Pay, they will receive 2% Daily Cash.
- Customers will also get 3% Daily Cash on all purchases made directly with Apple, including at Apple Stores, on the App Store and for Apple services. You also get 3% cash back on purchases you make at select merchants like Exxon, T-Mobile, Nike, Uber and more.
- Apple has also designed a titanium Apple Card for shopping at locations where Apple Pay is not accepted yet. For purchases made with the titanium Apple Card, customers will get 1% Daily Cash.
The Apple Card’s cash back rewards are very convenient. You earn cash back almost immediately after making purchases, and you can easily access it through any iOS device, such as an iPhone, iPad or Apple Watch.
2. Apple Card 3% Cash Back Categories
The Apple Card is most rewarding when used to make purchases from select merchants using Apple Pay. Purchases made with the physical credit card, earn just 1% cash back. Currently, the locations that give you 3% cash back for using Apple Pay with an Apple Card are:
- Purchases at Apple
- Ace
- Exxon/Mobil
- Nike
- T-Mobile
- Uber/Uber Eats
- Duane Reade
- Panera Bread
- Walgreens
Keep in mind that merchant offers could change at any time. So, it’s worth checking out which the latest Apple Card 3% categories are before your make a purchase with your card.
3. Where to Find Your Apple Card Cash Back Rewards
Your Apple Card cash back rewards go into your Apple Cash account, which you can find in the Wallet app.
When you shop with Apple Pay and have a balance in your Apple Cash account, you can use it to pay for purchases instead of using another form of payment tied to your account.
4. How to Redeem Your Apple Card Cash Back Rewards
It’s pretty easy to spend Apple Card rewards on whatever you want or to send earnings to your savings. More specifically, you can spend the Apple Card’s cash back rewards to:
- Shop through Apple Pay: You can use Apple Pay to pay anywhere it is accepted—in grocery stores, boutiques, restaurants and more. You can also use Apple Pay to make purchases on iTunes, Apple Music, the App Store, iCloud, Apple News+ and more.
- Send money through Messages: You can use Apple Cash to send money to your iMessage friends. Just open a private conversation thread with the person you want to send money to. Tap the "Apple Pay app" icon just above the keyboard, where the rest of your iMessage apps are located. Enter the amount of money you want to send and tap "Pay."
- Transfer money to your bank account: If you'd rather have your Apple Cash in your checking account, you can transfer the money directly from your iPhone. Just open the Wallet app and choose “Transfer to Bank.” Enter the amount you want to withdraw, then tap “Next.”
- Pay off your balance: It's possible to use your Daily Cash earnings to pay towards your Apple Card balance. Open the Wallet app and select your Apple Card. Then, tap the “Pay” button, enter the amount you want to pay, and select “Pay Now.”
5. Apple Card Cash Back Won't Expire
The Apple Card’s cash back rewards will never expire. Even if you close the account, the money is still available in Apple Cash within the Wallet app.
To make the most of your cash back, use Apple Pay whenever possible. Doing your everyday shopping at stores that allow this payment method helps you save more.