Apple has given Goldman Sachs a proposal to end their consumer banking partnership within the next 12-15 months. If the bank accepts the proposal, the move could possibly affect the two consumer banking products Apple currently offers: the Apple Card and the Apple Savings account.
CNBC Select breaks down what the possible end of the relationship between the tech giant and the investment bank could mean for card and account holders.
What would the split mean for the Apple Card and savings account?
It's not clear how the end of the relationship between Apple and Goldman Sachs would affect the credit card and savings account. Currently, Goldman Sachs is handling the banking end for both products, so the tech company would likely need to find a new financial partner. There's currently no information on whether Apple has made any steps toward securing a new partnership or if it's planning any changes to its card and savings account products.
As of now, the Apple Card and Apple Savings continue to offer the same terms and benefits as before. As reported by CNBC, an Apple representative said "Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them."
The Apple Card launched in 2019 as a cash-back card tailor-made for the brand's enthusiasts. With a $0 annual fee, 3% cash back (also called Daily Cash) on eligible Apple purchases and 2% cash back on Apple Pay purchases, the card is a decent choice for anyone who frequently uses Apple's payment service.
Apple Card
Rewards
3% cash back on goods or services purchased directly from Apple (including Apple retail stores, the Apple online store, the App Store, iTunes, Apple Music and other Apple-owned properties) on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com, in T-Mobile stores, at Nike, at Exxon and Mobil stations and at Panera Bread, 2% cash back on Apple Pay purchases and 1% cash back on all other purchases
Welcome bonus
None
Annual fee
$0
Intro APR
None
Regular APR
19.24% to 29.49% variable
Balance transfer fee
None
Foreign transaction fee
None
Credit needed
N/A
Terms apply.
Apple cardholders are also eligible to apply for Apple Savings, the tech company's foray into the world of high-yield savings accounts. Besides earning users a high amount of interest, the savings account also lets card users automatically deposit the cash back they earn with the Apple Card into the account, making saving just a little bit easier.
Apple Savings
Annual Percentage Yield (APY)
4.15% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
No max number of transactions; max transfer amounts may apply
Excessive transactions fee
No
Overdraft fees
No
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Alternative products to consider
The most attractive feature of the Apple Card is arguably the ability to earn 2% cash back on Apple Pay purchases. If you're used to paying with your iPhone or Apple Watch, you could be earning double cash back anywhere Apple Pay is supported.
But the Apple Card isn't the only card that offers double rewards. In fact, you can find cash-back cards that make it much easier without requiring you to stick with a single payment method. Namely, the Wells Fargo Active Cash® Card earns 2% unlimited cash rewards and also has a $0 annual fee.
Wells Fargo Active Cash® Card
Rewards
Unlimited 2% cash rewards on purchases
Welcome bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual fee
$0
Intro APR
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
Regular APR
20.24%, 25.24%, or 29.99% Variable APR on purchases and balance transfers
Balance transfer fee
3% intro for 120 days from account opening then BT fee of up to 5%, min: $5
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees, terms apply.
The Citi Double Cash® Card is another option with 2% cash-back rewards on every purchase (1% cash back when you buy, plus an additional 1% as you pay for those purchases). The annual fee is $0.
Citi Double Cash® Card
Rewards
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24
Welcome bonus
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Annual fee
$0
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
19.24% - 29.24% variable
Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
3%
Credit needed
Fair/Good/Excellent
See rates and fees. Terms apply.
Read our Citi Double Cash® Card review.
As for savings, you can find an online savings account with an even better interest rate. For example, LendingClub High-Yield Savings offers 5.00% APY as of writing and only requires a $100 minimum to open.
LendingClub High-Yield Savings
Annual Percentage Yield (APY)
5.00%
Minimum balance
No minimum balance requirement after $100.00 to open the account
Monthly fee
None
Maximum transactions
None
Excessive transactions fee
None
Overdraft fees
N/A
Offer checking account?
Yes
Offer ATM card?
Yes
Terms apply.
The UFB Secure Savings is another great choice currently earning 5.25% APY on all balances — and there's no minimum deposit to open the account.
UFB Secure Savings
Annual Percentage Yield (APY)
Up to 5.25% APY on any savings balance; add a UFB Freedom Checking and meet checking account qualifications to get an additional up to 0.20% APY on savings
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
ATM access
Free ATM card with unlimited withdrawals
Maximum transactions
6 per month; terms apply
Terms apply.
Read our UFB Secure Savings review.
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Bottom line
If Goldman Sachs proceeds to accept Apple's proposal, it's unclear how (and if) the decision would impact the popular Apple Card and Apple Savings. Right now nothing has changed for consumers, but if you're curious about alternative options, there's plenty available for both cash-back credit cards and high-yield savings accounts that will almost certainly help you reach your financial goals.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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