- Apple launched a high-yield savings account Monday through Goldman Sachs for Apple Card users who want to grow their Daily Cash rewards, the tech company announced.
- The account offers an annual percentage yield of 4.15%, with no fees attached, no minimum deposit and no balance requirement, Apple said.
- Users can set up the account through the Wallet app in their iPhone. But money can’t be spent directly from the savings account: It must first be transferred either to a checking account or Apple Cash.
Apple first announced it was working on the savings account in October as part of a series of offerings meant to generate a greater share of revenue from services. Nearly 20% of Apple’s revenue came from services in 2022, according to Bloomberg. That’s up from 8% roughly a decade ago.
“Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said Monday in a press release. “Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send and save Daily Cash directly and seamlessly — all from one place.”
As interest rates have increased over the past year, a number of banks — among them, Marcus — have drastically increased APYs attached to savings accounts to draw in customers. Apple’s 4.15% APY tops the 3.9% rate offered by Marcus, from the tech company’s partner bank, Goldman Sachs — and is more than 10 times the national average APY for savings accounts, according to the Federal Deposit Insurance Corp.
The savings account hits the market roughly a month after Apple rolled out a buy now, pay later program allowing customers to make purchases in four installments over six weeks without interest or fees. Apple is planning to expand that service to handle larger transactions over longer time frames, with interest, Bloomberg reported. An iPhone subscription program is also in development, according to the wire service.
“The product launch comes on the heels of recent instability in the banking sector and in a generally higher rate environment,” Kevin Kennedy, an analyst at global research firm Third Bridge, told Banking Dive via email. “This should drive healthy adoption as more consumers are aware of higher yield potential through moving funds from the conventional savings accounts offered by the large national banks.”
Together, the rollouts represent “a clear indicator that Apple is positioning itself as a major contender in the fintech arena,” Kennedy added.
The savings accounts can hold a maximum threshold of $250,000, which is FDIC-insured.
Consumers can also transfer funds from their savings accounts using Apple Cash. The transaction starts at a minimum of $1 and extends to $10,000, a deposit account agreement by Goldman Sachs noted.
Customers can transfer up to $20,000 over seven days. However, the lender might place additional limits on the amount and the frequency of transfer to keep the account safe, according to the document.