apple inc AAPL introduced new savings account for users of its Credit card on Thursday.
What happened: Apple Card users can now save their Daily Cash rewards in a high-yield savings account Goldman Sachs Group Inc GS.
According to Apple, the account comes with no fees, no minimum deposits and no minimum balance.
Account users can deposit additional funds from a linked bank account or from their Apple Cash balance, the Tim Cook-led company said.
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Fee-free withdrawals can be made through transfer to a linked bank account or through the Apple Cash card. A savings dashboard in the wallet app shows the balance and accrued interest.
Why it matters: Apple’s offer comes at a time of rising interest rates. The US Federal Reserve gave one third increase of 0.75% in a row in interest rates last month.
However, rising interest rates are accompanied by high inflation, which has prompted some consumers to start consuming Credit cards to complement your budget.
Apple and Goldman Sachs jointly launched a cash-back yield credit card in August 2019.
According to a previous report, Apple Card users, who typically have low credit scores, are statistically more likely to miss payments in such a scenario.
Price promotion: On Thursday, Apple shares closed up 3.4% in the regular session at $142.99, falling 0.1% in after-hours trading Data from Benzinga Pro.
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