Apple Savings, also known as Apple Card Savings Account, launched last April 17th, and we tell you right now everything has been successful so far.
Why? This is because just four days after it rolled out, a news story from Forbes, said the Apple Card Savings Account has drawn as much as $990 million, almost a billion dollars. Plus, on launch day alone, it drew almost $400 million in deposits. And that’s not all. By the end of its launch week, roughly 240,000 accounts had been opened.
“Banks have quickly responded to the Fed’s interest rate hikes with higher mortgage and car loan rates, but savers have seen little to no increase in traditional bank deposits or savings accounts,” Richard Crone, payments firm Crone Consulting CEO and founder, said in the Forbes report. “There’s an outflow to CDs, money market funds, and fintechs like Apple.”
Apple Savings is one of the newest offerings of the company, a high-yield savings account run by Goldman Sachs, while Apple owns its front end. This savings account is linked to the Apple Card. Therefore, it is only available in the United States.
The Apple Savings account is available to Apple Card users, who can access it via their Apple Wallets. It has no monthly fees or minimum requirement to open an account or earn the Annual Percentage Yield. However, users must adhere to the maximum balance limit of $250,000.
What made several users avail of Apple’s new savings account? The Forbes report said it might be because of the account’s annual return rate.
Apple Savings’ uber attractive 4.15 percent annual return, plus the ubiquity of iPhones, is likely the main reason for the massive account openings, Forbes’ Emily Mason, who covered the news, said. This is also since especially that the average bank is paying less than half a percent.
Goldman Sachs has its own high-yield savings account, which is housed under Marcus, its consumer brand. It offers a 3.90 percent return, less than what Apple Savings has. Mason tried to go further to ask about the deposit and account figures, but both Apple and Goldman Sachs declined to provide a statement.
