Apple reduces the interest rate for Apple Card Savings Account.

Apple and Goldman Sachs are reducing the interest rate on the Apple Card Savings Account from 4.4% to 4.25%. This change was communicated to Apple Card users via push notifications on Tuesday evening.

Initially, the savings account offered a 4.15% annual percentage yield (APY) during its first eight months. The rate rose to 4.25% in December last year, then to 4.35% in early January, and finally to 4.5% by late January. However, it was reduced back to 4.4% in April, where it remained until now.

This rate adjustment follows the U.S. Federal Reserve's recent decision to lower interest rates by 50 basis points. It's typical for the APY of savings accounts to fluctuate after changes in Fed rates.

The Apple Card Savings Account is exclusive to Apple Card holders, allowing users to automatically deposit their Daily Cash rewards into the high-yield savings account via the Wallet app. Users can also transfer money from a linked bank account or their Apple Cash balance. Interest is compounded daily and paid out at the end of each month.