Apple offers high-yield savings to card customers as deposit competition heats up
FILE PHOTO: A women uses an iPhone mobile device as she passes a lighted Apple logo at the Apple store at Grand Central Terminal in New York City, U.S., April 14, 2023. REUTERS/Mike Segar
NEW YORK: Apple is seeking to attract US savers with a new high-yield deposit account it announced on Monday (Apr 17) with partner Goldman Sachs Group Inc amid increased competition among financial institutions for consumer dollars.
Apple said users of its Apple Card can earn 4.15 per cent on savings accounts, or 10 times higher than the national average, citing March data from the Federal Deposit Insurance Corporation that showed consumers earned an average of 0.37 per cent on savings in bank accounts.
Regional and small banks are competing for deposits by dangling promotions, including higher rates and cash bonuses for opening new accounts.
The moves come after rattled consumers moved billions of dollars to banking giants from smaller lenders in March following the failures of Silicon Valley Bank and Signature Bank.
The Apple rate is higher than the 3.9 per cent Goldman offers for an online savings account at its digital consumer bank, Marcus.
