Apple has taken a step forward in the financial services industry by partnering with Goldman Sachs Group to introduce a new high-yield savings account. The savings account will be available for Apple Card users in the USA who can earn an annual yield of 4.15%, which is more than 10 times the national average. This offering has been long-awaited and has no fees, minimum deposit, or balance requirements. Users can easily set up the account within the Wallet app.
The maximum balance allowed for the account is $250,000, which is also the maximum amount insured by the FDIC. Bank account holders in the United States of America, on average, earn only 0.37% on bank savings, and as a result, small and regional banks are offering promotions such as cash bonuses for new accounts and higher interest rates to attract customers. Goldman Sachs’ other partnership Marcus offers customers a 3.9% interest rate on their savings accounts.
Apple had announced the launch of its new savings account in October 2022 as part of its financial offerings aimed at generating revenue from services and increasing customer loyalty. Services accounted for 20% of the company’s revenue last year, an 8% increase since 2012. In addition to the savings account, the tech giant also introduced a “Buy Now Pay Later” service in March, which had been long-awaited. These features allowed customers to divide expenses into four separate payments with no additional costs, fees or interests.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, explained that the savings account is designed to help users get more value out of their Daily Cash Apple Card benefit while making it easier for them to save money every day. Bailey added, “Our goal is to develop tools that assist users in leading healthier financial lives, and integrating Savings into the Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly – all from one place.”