Initially this interest savings sounds good. But is it really to good to be true? The plan is pretty complicated.

Hey Jeff, complicated is definitely the right word. Everyone is talking about the 4.15% APY which is ANNUAL aka over a 12 month period. What I’m more concerned with and having more trouble with in speaking with Apple is their DAILY COMPOUNDED interest rate of 4.07% and it’s MONTHLY payout. So every month there’s supposed to be a daily compounded interest at a rate of 4.07% that accrues on the TOTAL balance of the Savings account that pays out on the 1st calendar day for the previous month. Assuming of course said balance stays at that total or more for a full 30 days. Example you park $1000 dollars in the savings account August 31st and leave it there through the entire month of September. Now you recieve a payout of the interest that $1000 has been compounding daily at a rate of 4.07% which comes to $40.70 meaning on October 1st your monthly payout from Apple in interest should be $40.70 leaving you with a total in said savings account of $1040.70. HOWEVER that’s not what’s happened to me the past 3 months at all. I’ve had 7K parked since August and for September I got $18 and for the month of October today I received $23.86 mind you this is not including my daily Cashback that’s being sent directly to the savings account as well so the TOTAL on the savings account is a few hundred bucks above 7K. Would you happen to know anything about the Daily 4.07% rate by chance?

I think the misunderstanding is the math and the meaning of anachronisms. APR is the Annual Parentage Rate and APY is Annual Percentage Yield. APR is the base interest being applied to the funds on an annual basis. If we divide by 12 (months in a year) you have the interest being applied every month. If we divide by 365 (days in a year) we have the interest being applied/earned every day. So, on a $1,000 deposit, you are earning approximately 12¢ a day or $3.60 a month or $43.20 a year.

But APR does not take into account compounding the interest on a daily basis. This is where APY comes into play as the yield reflects the compounding you receive. If we apply the compounding interest, a $1,000 deposit earns 12.3¢ a day or $3.69 a month or about $45.00 a year.

Just for comparison if a deposit $1,000 in my Chase Bank savings account, at the end of a year I’ll have earned 10¢. That’s not a misprint. Chase pays 0.01% percent on a standard savings account.

Remember rates are not guaranteed and my numbers above are just for illustrative purposes.

I’m happy to answer more questions and/or concerns.

It pays 4.15% APY. The interest is compounded daily and paid monthly. Here is a sample illustration of how compound interest works. This illustration assumes you’ll invest $1000 USD and make not further deposits or transfers. It also assumes that no change in interest will happen and interest rates are not guaranteed. This is for educational purposes only.

Deposits up to $250,000 are insured by FDIC.

You can calculate you own tables by using a financial calculator available in the App Store.

You did the math wrong. It should be $1000 X .044 (4.4% APY) = $44 divided by 12 = $3.66

$1000 + $3.66 equals $1003.66 after one month.

Also could you do an illustration for the numbers I just quoted in my other comment.

Same here I started with $1000 and also received Daily Cash and at the end of the month all I got was $2 and some change There’s a Really Big problem here if they don’t fix this I’m pulling my money

What can I help you better understand?