Apple today announced its own savings account through Goldman Sachs, offering a 4.15% annual percentage yield (APY) that requires no minimum deposit or balance. The account can be set up through the Wallet app on iPhones, and all Daily Cash rewards earned through the Apple Card will be automatically deposited to the savings account. Users can also add funds from their bank account to build on their earnings.
This move is a significant departure from Apple’s core business of hardware and software, as it ventures into the financial services industry. The national average APY on savings accounts is only 0.35%, according to the Federal Deposit Insurance Corporation (FDC), making Apple’s 4.15% APY highly competitive. However, several credit unions, online banks, and brick-and-mortar banks offer similar or better rates.
For example, CIT Bank offers a savings account with a 4.75% APY when customers deposit a minimum balance of $5,000. Marcus by Goldman Sachs offers a 3.9% APY with no minimum balance or monthly fees, while Capital One’s savings account has no minimum balance, and users can earn a 3.5% APY. Vio Bank offers a savings account with a 4.77% APY and no minimum balance.
Apple Card savings users can manage their accounts through a dashboard that appears in the Wallet app, where they can track their interest and account balance, as well as withdraw funds. The launch of the Apple Card savings account is part of the company’s broader push into financial services, which includes the Apple Card credit card and the Apple Pay digital wallet.
In addition to offering a competitive interest rate, the savings account could be a valuable tool for Apple to increase customer loyalty and engagement. By integrating the savings account with the Apple Card and Wallet app, the company can create a seamless and convenient financial ecosystem that keeps users within its ecosystem.
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