Apple Card Savings APY Rises to 3.5% Following Fed Rate Hike
What happened
The annual interest rate earned on cash held in Apple Card Savings accounts increased to 3.5% annual interest. This account, which is managed by Goldman Sachs, receives funds from Apple Inc.'s cash-back program. The rate increase followed the Federal Reserve's hike of the federal funds rate target range to 3.75% to 4%.
From cultofmac.com
Why it matters
The rate adjustment reflects the central bank's response to the U.S. economy and its efforts to combat high inflation. The rate increases are a direct consequence of the Federal Reserve's aggressive monetary policy actions.
From cultofmac.com
Who's involved
- FEDCentral bank whose benchmark rate hikes influence financial products.
- Apple Inc.Owner of the Apple Card product line.
- Goldman SachsFinancial institution managing the Apple Card Savings account.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Goldman SachsSpeculative
Goldman Sachs might face increased operational costs due to the higher APY on the managed savings account.
How it developed
Newest first. Tap a step to see who reported it.- FED raising interest rates is projected to negatively impact lending across the financial services sector.Sub-event
FED rate hikes are affecting consumer savings rates, managed by Goldman Sachs for Apple Card holders.1 source
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The entities involved
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FED
business
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Apple Inc.
American multinational technology company based in Cupertino, California
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Goldman Sachs
American investment bank
Related events
- Market pricing of future rate hikes is being observed.
- Major financial institutions are warning of increased deposit costs and charge-offs following the recent FED rate hike.
- Fed rate hike increases deposit costs.
- Banks monitor Fed rate hike speculation amid concerns over a US blockade reviving energy shock concerns.
- Markets are pricing in future Fed rate hikes as central banks begin buying gold at a record pace.