Customers in the United States have another deposit option now as Apple Inc. on April 17 said it is offering a new high-yield deposit account. Partnered with Goldman Sachs Group Inc., the launch comes amid increased competition between financial institutions for consumer money.
Apple is offering an Apple Card with the account that gives customers 4.15 percent on savings accounts — 10x the national average (March data, Federal Deposit Insurance Corporation), Reuters reported.
Customers based in the US can set up an account using the Wallet app. It had no fees, no minimum deposit amount and no minimum balance requirements. The maximum balance amount is $250,000, Bloomberg reported.
Notably, Goldman’s other partnership with digital bank Marcus offers 3.9 percent interest.
On average, customers earn 0.37 percent on bank savings. Small and regional banks are thus capitalising and attracting customers with promotions such as cash bonuses for new accounts and higher interest rates, it added.
Focus on financial offerings
The race for customer deposits in the US is heating up. The collapse of Silicon Valley Bank (SVB) and Signature Bank has made investors cautious of big banks and through March they have shifted savings to smaller banks.
Apple had announced its new savings account in October 2022 as part of a number of financial offerings. It is looking to generate revenue from services and lock more customers into Apple platforms, Bloomberg noted. As much as 20 percent of its revenue stream last year has been from services — an 8 percent jump since 2012.
Besides the card, in March the tech giant also rolled out a much delayed ‘Buy Now Pay Later’ service. “Our goal is to build tools that help users lead healthier financial lives,” said Jennifer Bailey, vice president of Apple Pay and Apple Wallet.
(With inputs from Reuters, Bloomberg)