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Should you open a new Apple savings account?

Now is a great time to open a high-yield savings account with high interest rates.

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If launched this week Apple’s new high-yield savings account For Apple Card users you’re considering boosting your savings — Now is a great time to start.

Today’s Interest rates are high They have done it for several years and a lot of competition between banks means you can make a great return on your savings.

Whichever account you choose, “If you have excess cash, now is a great time to park it and rebuild your cash reserves,” says Billy Hatton, CFP, founder of Billfold Budget Counseling.

Apple’s savings account, along with Goldman Sachs, earns a cool 4.15% APY with no fees or minimums. but Apple’s latest storage option Not for everyone. While its features will appeal to few savers, there are plenty Other high-yield accounts available Today that offers similar benefits and may have even higher interest rates.

Explore some of today’s best high-yield savings accounts here

Should you open a new Apple savings account?

Apple’s savings account has some tricky features, but it pays to do your research first Opening a new account.

Here are a few account details to consider before you decide:

interest rate

After the Federal Reserve’s ongoing rate hikes over the past several months, the target federal funds rate has ranged up to around 5%. Instead, banks responded by raising interest rates offered to savers.

With the national average savings rate sitting at just 0.39%, according to the Federal Deposit Insurance Corporation (FDIC), many banks today offer 10 to 12 times or more.

“Last year, it was difficult to earn 4% cash without risking volatility,” Hatton says. But today, you can find several deposit accounts with higher rates.

For example, the new Apple Savings Account has a cool 4.15% APY This exceeds the national average, but it is not the only one. Lots of banks – esp Online Bank Offer up to 4.5% or 5% APY – with lower overhead costs and more competition.

Just remember: Today’s high interest rates won’t last forever. Savings accounts carry variable interest rates, which move in line with the federal rate. When the Fed decides to cut interest rates again, your savings account will likely shrink as well.

That’s why it can pay to start saving now — the longer you can maintain a competitive rate, the more interest you’ll earn on your balance. Learn more about today’s top high-yield savings rates here.

Access your money

One of the best reasons to use a high-yield savings account is to keep your savings emergency fundwhich you may need to access at short notice.

“Keeping these funds separate from everyday cash flow accounts like checking has some ‘out of sight, out of mind’ effect, which helps savers avoid non-emergency situations,” says Alison James, CFP, founder of WorthWise Financial Partners. “At the same time, funds are easily accessible and can be transferred quickly in case of a true emergency.”

Since many high-yield savings accounts, including one from Apple, are online-only, you need to make sure the way you transfer money in and out is convenient for you. With an Apple Savings account, you can access your savings with Apple Cash (which you can spend anywhere that accepts Apple Pay) or by transferring it to an external savings account.

This is similar to many high-yield savings options. Usually, you can access your funds by transferring them to another bank account, such as your checking account. Some banks offer same-day transfers while others can take up to a few days so read your account terms and conditions to see how long these transfers may take before you can access your money.

Other details

Apple Savings Accounts have no fees and no minimum balance requirements. Depending on your personal goals, this could be two things You want to view an account.

Fees, for example, can quickly eat into your interest earnings. While savings accounts often come with standard fees for certain account activities, including wire transfers or stopping payments, you may want to avoid accounts that charge monthly fees for account access (usually waived by meeting high minimum balance requirements).

Another thing to always make sure of in your savings account is FDIC insurance. This way you can confirm Your money is safe and secure in the account. The FDIC insures deposits up to $250,000 per account type per bank. The Apple Savings account is FDIC-insured and even caps your balance at a maximum of $250,000. Many other banks also do this, or stop paying interest on balances after that amount as an incentive to maintain insured balances.

Bottom line

If you’re already an Apple Card user, Apple’s latest high-yield savings account might make a great choice. But be sure to compare interest rates, fees, and other account details from the numerous high-yield savings account options on the market to truly find the best option for you.

The most important thing is to choose an account that fits your goals — and then start saving The more you take advantage of today’s higher rates and build a stronger balance, the better your savings will be in the long run.

Get started today by comparing some of the best savings rates available.

MoneyWatch: Managing Your Money

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