Apple Card Savings Is Now Paying Even More—But You Can Still Do Much Better Elsewhere

After just recently reporting that Apple raised its interest rate on its Apple Card Savings account, the tech giant boosted its high-yield savings rate again today. Instead of the 4.25% APY you could earn as of Dec. 21, Apple is now paying 4.35% APY on Apple Card Savings balances.

It's a little surprising to see Apple make two small rate increases within the space of 15 days, given it had held the rate steady at 4.15% APY since its April launch. For those already using Apple Card Savings, it's certainly welcome news. But if you don't already hold an Apple Card (the name for Apple's cash-back credit card), it's probably not worth opening one simply to get access to an Apple Card Savings account. That's because while Apple's rate is reasonable, it's not stellar. You can easily out-earn it with numerous high-yield savings accounts that don't require you to hold an accompanying credit card.

We track the best high-yield savings accounts every business day, and our daily ranking currently includes 15 options that pay 5.25% APY or more. That's at least one percentage point higher than Apple's rate. And you can outperform Apple Card Savings even more by choosing the highest nationwide rate of 5.50% APY.

High-Yield Savings Accounts that Out-Pay Apple by a Percentage Point or More

Bank	APY	Required opening deposit	Minimum ongoing balance
	5.50%	Any amount	Any amount
	5.50%	Any amount	$1,000 to earn stated APY
	5.35%	$500	Any amount
	5.35%	$25,000	Any amount***
	5.35%	$5,000	$25 to earn stated APY
10 more options pay 5.25% or better. You can find those in our full daily ranking.

Apple Card Savings charges no monthly fees and has no minimum required balance. At the cost of a lower interest rate, it does offer a convenience benefit if you already own an Apple Card. Of particular interest to some users will be the ability to automatically deposit your Daily Cash from Apple Card purchases into your Apple Card Savings account.

What Will Happen to Savings Account Rates in 2024?

Today's interest rates are at historic highs thanks to the Federal Reserve and its aggressive campaign to combat decades-high inflation. Between March 2022 and July 2023, the Fed raised the federal funds rate 11 times for a cumulative increase of 5.25%—taking the benchmark rate to its highest level since 2001. Because banks and credit unions base their interest rate decisions on the fed funds rate, the Fed surge has caused savings account, money market account, and certificate of deposit rates to skyrocket as well.

But now that inflation has cooled considerably, the Fed may be finished with its rate-hike cycle. In fact, data released by the Fed on Dec. 13, at the conclusion of its latest rate-setting meeting, showed that almost 80% of Fed committee members expect two to four rate cuts will be implemented in 2024.

That said, the Fed has simultaneously made it clear that another rate hike is not impossible if inflation doesn't keep coming down to the Fed's target level. In other words, we're in a period of uncertainty. Most forecasters do expect we'll see multiple rate cuts in 2024—but it's entirely unknown when the first of these will actually take place. Indeed, today's unexpectedly strong jobs report could make it harder for the Fed to cut rates anytime soon.

Until the uncertainty clears up, savings account rates are likely to continue at their plateaued level. But once it looks like a Fed rate decrease is imminent, it's a good bet that savings account rates will start to decline. Since savings account rates are variable, there's nothing you can do about dropping APYs. But what you can do is shop around so you're earning a top-paying rate, whatever the current interest rate environment.

How We Find the Top Savings Account Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.