Apple Savings account: how to open and interest rate explained

to launch a new savings account paying more than 10 times the average US interest rate.

The savings account yields 4.15 per cent interest a year, well above the 0.37 per cent national average.

It was announced in October, and is being offered to users of - which is also run in partnership with Goldman.

don't need to pay any fees and there is no minimum deposit requirement.

The biggest amount you can deposit in the savings account is £250,000.

Customers' deposits will sit with Goldman, giving them protection by FDIC deposit insurance.

Interest earned by account holders is compounded daily and credited to the savings account monthly.

Apple VP Jennifer Bailey said: "Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day.

"Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place."

How do I open an account?

To set up an Apple Savings account, you need to be the owner or co-owner of an active Apple Card account added to your .

You also need to be a US resident over the age of 18 with a or an individual taxpayer identification number.

First make sure you have two-factor authentication for your Apple ID and that you have the latest version of .

Then open the Wallet app and tap Apple card, followed by the More button and the Daily Cash tab.

This will give you the option to set up Savings, with the option to transfer funds from your Apple Cash balance to your new account.

If you don't want to transfer your Apple Cash balance, just tap the Close button.

You may not be able to open an account if your Apple Card is restricted or locked.

How do I deposit money?

Savings customers agree to automatically deposit Daily Cash in their accounts.

You can also deposit money in your Apple Savings account from Apple Cash or a linked external bank account.

To deposit money, open the Wallet app and tap Apple Card.

Go to your Savings Account and click on Add Money before specifying the amount.

Select the payment source and double-click to confirm with Face ID, Touch ID or your passcode.

Funds transferred from Apple Cash will be available instantly, while those deposited from external accounts may take a few days to become available for withdrawal.

How do I get the best savings rates?

The best savings rate offered by Apple Savings is their Daily Cash Rewards scheme with Goldman Sachs.

This account offers a 4.15% annual percentage yield (APY), growing your savings each year.

Daily Cash is deposited into the account automatically to begin earning interest.

Users can deposit additional amounts from Apple Cash and face no fees or limits on what they can earn.

These accounts are also insured by the Federal Deposit Insurance Corporation, which will cover up to £250,000 per depositor.

According to the Bankrate database, this rate places Apple eleventh in overall rankings, with other accounts offering rates north of 5%.

Personal finance experts advise shopping around and seeing if switching bank could earn you more.

However, be aware that federal insurance should be a major priority when choosing your account and watch out for extra fees or earnings limits.