Just four days after unveiling a new high-yield savings account for consumers, Apple may have received nearly $1 billion in deposits.
- Apple received around $990 million in deposits in the first four days after launching its new savings account, Forbes reports.
- The account’s success shows that Apple can make further profits from its millions of users by offering higher interest rates than the industry.
- On the first day of the account’s launch, Apple received nearly $400 million in deposits, Yahoo Finance reports.
- More than 240,000 new accounts have been opened, representing just 0.2% of all iPhone users.
Why it’s news
With its massive audience and convenient perks for customers, Apple stands out against other financial institutions. With the recent collapse of First Republic Bank, customers are worried about their bank’s stability. However, Apple’s size and influence give customers some reassurance.
In partnership with Goldman Sachs, Apple’s new savings account allows customers to take advantage of high interest rates.
Account holders must have an Apple Card. There are no minimum deposit or balance requirements and no fees. The account offers a yield of 4.15%, Yahoo Finance reports.
The account may not offer the highest yield available to customers through other financial institutions, but it does offer convenience for customers with an iPhone or Apple Card. The savings account works through the existing iPhone Wallet.
Backing up a bit
Apple Card users can take advantage of a high-yield savings account through a new deal between Apple and the investment bank Goldman Sachs.
Apple announced its latest expansion into the world of consumer finance in the form of a new partnership with the investment bank Goldman Sachs. Apple Card users can put their “Daily Cash” or cash rewards into the savings account.
Currently, Apple Card users earn up to 3% cash back on all purchases.
“In the coming months, Apple Card users will be able to open the new high-yield Savings account and have their Daily Cash automatically deposited into it—with no fees, no minimum deposits, and no minimum balance requirements. Soon, users can spend, send, and save Daily Cash directly from Wallet,” the company says in a press release.