Apple launches savings account with 4% APY

Apple Card users can choose to grow their Daily Cash rewards with a Savings account from Goldman Sachs, which offers a high-yield APY of 4.1%, 10 times the national average. With no fees, no minimum deposits, and no minimum balance requirements, users can easily set up and manage their Savings account directly from Apple Card in Wallet.

It comes after Apple partners with Goldman Sachs last year to offer a credit card to Apple’s customers, with the service expanding into a high-yield saving account with an annualised interest rate of 4.15%.

“Savings helps our users get even more value out of their favourite Apple Card benefit – Daily Cash – while providing them with an easy way to save money every day,” said Jennifer Bailey, Apple’s Vice President of Apple Pay and Apple Wallet. “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.”

Once a Savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. The Daily Cash destination can also be changed at any time, and there’s no limit on how much Daily Cash users can earn. To build on their savings even further, users can deposit additional funds into their Savings account through a linked bank account, or from their Apple Cash balance.

Users will also have access to an easy-to-use Savings dashboard in Wallet, where they can conveniently track their account balance and interest earned over time. Users can also withdraw funds at any time through the Savings dashboard by transferring them to a linked bank account or to their Apple Cash card, with no fees.

The new Savings account from Goldman Sachs builds upon the financial health benefits that Apple Card already offers, with absolutely no fees, Daily Cash on every purchase, and tools that encourage users to pay less Apple Card interest – all, while offering the privacy and security users expect from Apple.

Whilst a 4.15% APR may not be the highest available, it beats the big banks by a mile. Apple is flexing its strong brand and reach. With an estimated 1.8 billion active Apple devices globally, over one billion are iPhones.

Yet according to Statista, 39% of the US population have never heard of Apple Pay, and 46% have no interest in using it.

Huge tech corporations have bold ambitions to be the centre of everyone’s daily life, Apple included. With moves into high-yield savings, buy now/pay later and mobile payment, Apple could be making meaningful invasion.

The question is, can big tech companies deliver banking services better?