With ongoing recession fears, everyone knows the importance of having money in the bank.
But where you keep your savings is essential, too, because you could now be earning over 4% on that money if you put it in the right place.
And Apple wants your business.
It has just upended the banking industry, launching a new high-yield savings account to compete with national banks.
It allows Apple Card holders to earn a 4.15% annual yield as of mid-April, far above what most bricks and mortar banks are paying on savings.
A growing number of other high-yield online savings accounts now offer competitive rates of 3% or more.
Most savers are not taking advantage
But not everyone is taking advantage of this easy way to grow your savings, according to Greg McBride, chief financial analyst withBankrate.com.
"There are a plethora of accounts that are available nationwide and have no minimum deposit and no monthly fees," McBride said.
But Bankrate found that:
- Just one in five savers are earning 3% back or more.
- One in six savers report earning no interest whatsoever.
"Leaving that emergency savings sitting in an account that's still earning near zero is a big difference, and it leaves a lot of money on the table," McBride said.
Apple unveils high-yield savings account with 4.15% interest rate
The savings account comes with no fees, no minimum deposits and no minimum balance requirements.
The national average rate for savings accounts is still less than 1%.
So why have people shied away?
In a Bankrate survey, many customers said they prefer access to a local branch -- even if it pays little to no interest. Others worry about the security of their money, though McBride says those fears are often unfounded.
"Always deal directly with a federally insured financial institution, either a bank or a credit union," McBride said. "And in that case, even if you're interacting with them solely online, they may be located in a different part of the country, but they're regulated just the same as the bank down the street."
Apple’s new savings account, offering more than 4% interest, was just launched with Goldman Sachs. It's only available to Apple Card users but has no minimum deposits or balance requirements.
To see if any of these high-yield options are right for you, check out Bankrate's online banking tool.
