You'll soon be able to earn interest on the cash back from your Apple Card

Some of the traditional cards we cover at TPG are different from Apple's branded card. The tech giant's Apple Card gives users cash back as part of what it calls Daily Cash.

Apple announced today that starting in the coming months, your cash back will be deposited into a high yield savings account.

How it will work

Depending on the interest rate you sign up for, your cash will grow over time.

In the future, you'll be able to open this account directly from your phone. Apple says that it will have no fees, minimum deposits or balance requirements. Only Apple Card owners and co-owners will be able to open the account.

As the account offering gets closer to launch, I think we will learn more about the interest rate for the new savings account. Goldman's high-yield savings accounts have an annual percentage yield of 2%.

When this new feature launches, you will be able to choose your preferred destination for your cash back directly in the wallet app on your phone. If you choose a savings account, you'll be able to accrue interest on your Daily Cash without any additional steps or fees.

Money from a linked bank account or from your Apple Cash balance can be added to the savings account to top it off.

You will be able to withdraw funds at any time. The savings dashboard will allow you to see your account balance and interest over time.

There is no limit to the amount of cash back you can receive with the Apple Card. You get it.

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• 3% Daily Cash on purchases made using Apple Pay with Apple and select merchants, including Uber and Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil and Ace Hardware.
• 2% Daily Cash when using Apple Pay at other merchants.
• 1% Daily Cash on all other purchases.

Bottom line

Cash back from the Apple Card was deposited directly into the Apple Cash account. You could transfer the money into a linked account from there. You could put the money in your bank account as you please.

It will be easier to earn interest on your cash back with Apple's new high yield savings solution. We will update this story when we know more about this new savings account partnership with Goldman Sachs.

This is the newest feature to be added to the Apple wallet. Apple Pay Later is a new option that will be available for all iPhone users. According to Apple, this feature was supposed to debut with the release of iOS 16 but will now be included in a future update. You can split any Apple Pay purchase into four payments with no interest or fees.