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.
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
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.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure. Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- 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.
- 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, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.49% - 28.74%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
As for savings, you can find an online savings account with an even better interest rate. For example, Happen Bank LevelUp Savings offers 4.00% APY when you make monthly deposits of at least $250 or more (without deposits a 3.00% Standard APY applies).
Happen Bank LevelUp Savings
Annual Percentage Yield (APY)
4.20% (with monthly deposits of $250 or more), or 3.00%
Minimum balance
None
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 Portfolio Savings is another great choice currently earning 3.26% APY on all balances — and there's no minimum deposit to open the account.
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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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