Toggle Menu
Fintech Schweiz Digital Finance News - FintechNewsCH Homepage
  • Blockchain
  • Mobile Payments
  • Money Transfer
  • Wealthtech
  • Lending
  • InsurTech
  • Crowdfunding
  • PFM
  • Open Banking
  • Funding
  • Regtech
  • Fintech Events
  • News Feed
    • Liechtenstein
    • Germany
    • Austria
    • London
    • USA
  • Fintech Accelerators
  • Fintech Lists
    • All Startups in CH
    • Top Startups in CH
    • Born In Switzerland
  • Submit
    • Submit Your Startup
    • Submit A Press Release
  • Fintech Jobs
    • Job Listings
    • Submit Your Vacancy
Apple’s New Savings Account is a Hit
Personal Finance Mgt (PFM) USA

Apple’s New Savings Account is a Hit

by Fintechnews Switzerland May 11, 2023
            

Apple’s new high-yield savings account is making a splash, drawing in nearly US$400 million worth of deposits on launch day. By the end of the first week, roughly 240,000 accounts had been opened, bringing in as much as US$990 million in deposits, sources familiar with the matter told Forbes earlier this month.

Launched on April 17, Apple’s Savings account is attracting customers for its high annual return of 4.15%.

An analysis by AppleInsider shows that the Apple Savings account is highly competitive and a strong contender among savings account products available in the US.

It offers a higher return than most savings account products provided by most traditional banking and financial institutions, including Barclays (3.8% APY), American Express (3.75%), Bank of America (0.01%), and Goldman Sachs’ own high yield savings account housed under its Marcus consumer brand (3.9%).

Apple’s Savings account is offered through a partnership with Goldman Sachs Bank USA, the unit of the banking group that runs Marcus. The bank also powers Apple’s credit card, Apple Card.

Apple Savings versus other savings account products in the USA, Source: AppleInsider, April 2023

Apple Savings versus other savings account products in the USA, Source: AppleInsider, April 2023

Apple’s new Savings account

Apple’s new Savings account is available to Apple Card credit cardholders. Users must be over 18 years old and must reside in the US. Apple doesn’t charge any fees for its Saving account, which also has no minimum deposits nor minimum balance requirements.

Users set up and manage their Savings account directly from Apple Card in the Apple Wallet mobile app. The app also allows them to withdraw funds by transferring them to a linked bank account or to their Apple Cash card without having to pay any fees, make direct deposits to Apple Savings using an account number and routing number, and track their account balance and interest accrued over time.

Apple's Savings account dashboard, Source: Apple, April 2023

Apple’s Savings account dashboard, Source: Apple, April 2023

Once set up, Apple Card spend rewards, called Daily Cash, are automatically deposited into the Savings account, allowing customers to earn interest on the rewards they get back from their credit card purchases.

Prior to the Savings account, Daily Cash rewards were automatically deposited into Apple Cash, a prepaid digital card held in the Apple Wallet app and issued by Green Dot Bank.

Advisory firm Crone Consulting estimates that US$3.8 billion is deposited into Apple Cash from the Apple Card each year, implying that these funds will now be moving into the Apple Savings account.

The 2023 US banking crisis

The rollout of Apple’s new Savings product comes at a time when US banks are struggling to maintain their deposit bases after a wave of bank failures shook the sector.

Silvergate Bank and Signature Bank, both with significant exposure to cryptocurrency, failed in March 2023 in the midst of turbulence in that market. Silicon Valley Bank (SVB) collapsed that same month after a bank run was triggered following the sale of its Treasury bond portfolio at a large loss, causing depositor concerns about the bank’s liquidity.

The banking sector further trembled this month after the FDIC took over failed lender First Republic Bank and sold the bank to JPMorgan. JPMorgan gained about US$92 billion in deposits from the deal.

Apple is one of the numerous tech companies that are taking advantage of the disruption currently faced by the tradition finance industry. Just last week, stock trading app Robinhood announced that it would be raising interest rates for its Robinhood Gold product to 4.65%, starting May 04.

Robinhood Gold is the paid premium membership offering of Robinhood, costly a monthly US$5. The program allows its members to earn interest on the cash they’re holding in their brokerage accounts, get larger instant deposits, tap lower margin investing rates and gain access to advanced market data as well as in-depth research from Morningstar.

Interests earned by Robinhood Gold members are paid out monthly and customers can track how much they’ve collected directly within the app. Customers can also instantly transfer funds from their brokerage account into their spending account to make purchases using their Robinhood Cash Card.

Apple is leveraging its massive user base of 2 billion active devices worldwide and strong brand to offer financial products and services intended to enhance the user experience, generate new revenue streams, and strengthen the company’s position as a leading technology and eventually a top financial services provider.

Some of the firm’s key financial services offerings include Apple Pay, a mobile payment and digital wallet service widely accepted at millions of merchants around the world; Apple Cash, a digital card and peer-to-peer payment service that lets users send and receive money in Messages and Apple Wallet; and Apple Pay Later, a buy now, pay later (BNPL) product launched earlier this year that allows users to split purchases into four payments spread over six weeks with no interests nor fees.

Fintech News America

Featured image credit: Edited from Freepik

Print Friendly, PDF & Email
The most important Fintech News from Switzerland weekly

Apple Apple Savings bigtechs savings account
            

About Author

More info about author
Fintechnews Switzerland

Fintechnews Switzerland

More by Fintechnews Switzerland

Related USA Articles

Similar Posts From USA Category
Record-Fundraising in France: €486 Million for SME Banking Startup Qonto in Series D

Record-Fundraising in France: €486 Million for SME Banking Startup Qonto in Series D

January 11, 2022
GOKONG Mobile App Gives Users A 360˚View Of All Their Finances

GOKONG Mobile App Gives Users A 360˚View Of All Their Finances

March 13, 2019
Revolut Goes Open Banking

Revolut Goes Open Banking

February 12, 2020

Featured Fintech Product

abacus Featured Fintech Product

Fintech Newsletter

Einmal wöchentlich die wichtigsten Fintech Schweiz News bequem ins Postfach / The most important Fintech News from Switzerland monthly

FOLLOW US

Facebooktwitterlinkedinrssinstagram

Featured Programme

InvestHK GlobalFastTrack

Featured Fintech Events

Payments USA 2023

HKFTW 2023

Upcoming Events

Jun 13
June 13 - June 14

Identity Week Europe 2023

Jun 13
All day

Swiss FinTech Awards 2023

Jun 13
June 13 - June 14

Transform Payments USA 2023

Jun 13
All day

Fintech 2023

Jun 14
All day

Private Banking & Wealth Management London Conference & Awards 2023

View Calendar

American Newsletter

Fintech Jobs

Fintech Jobs
  • Banking Practice, Director, Partner Track
    Wirz & Partners Management Consulting, Zug, Switzerland
  • Head of Brand Management and Digital Marketing
    Swissquote, Vaud, Switzerland
  • Senior Projektleiter/in
    Schwyzer Kantonalbank, Schwyz, Switzerland

SINGAPORE FINTECH REPORT

Singapore-Fintech-Map-2022-Source-Fintech-News-Singapore (1)

UAE Fintech Report

Partner Content

  • InvestHK Officially Launches the Global Fast Track 2023 Fintech Accelerator
    InvestHK Officially Launches the Global Fast Track 2023 Fintech Accelerator
    May 31, 2023
    Continue reading »
  • European ETF Industry Yearbook- Review 2022 And Outlook
    Highlights of the European ETF Industry in 2022: White Label Platform Competiton Heats up
    May 2, 2023
    Continue reading »
  • Switzerland Instant Payments
    Revolutionising Swiss Banking: Why Instant Payments are the Future
    March 29, 2023
    Continue reading »

Whitepapers & E-Books

The Future of Competitive Advantage in Banking and Payments
Bottomline

Other Fintech News Network Publications

Fintech News America

Navigation

  • About Us: Fintechnews
    • Contact Us
    • Media Kit
    • Work With Us
  • Fintech Switzerland Newsletter
  • Fintech Events
  • Fintech Webinars
  • Fintech Books
  • Fintech Podcasts
  • Datenschutzerklärung / Impressum
  • Submit a Press Release

Other Fintech News Network Publications

Fintech News Switzerland
Fintech News Singapore
Fintech News Malaysia
Fintech News Hong Kong
Fintech News Philippines
Fintech News Baltic
Fintech News Nordics
Fintech News America
Fintech News Middle East
Fintech News Africa

Latest Posts

Amnis Treasury Takes Over SME Business of Fx-Consulting AG
Personal Finance Mgt (PFM) Virtual Banking

Amnis Treasury Takes Over SME Business of Fx-Consulting AG

AMNIS Treasury, a FinTech company founded in 2014 with the

Print Friendly, PDF & Email
June 9, 2023

© 2015 - 2023 Copyright CK Finanzpro GmbH

  Close Window

Loading, Please Wait!

This may take a second or two. Loading
HUB SPONSOR
×

We have a page dedicated to fintech news in America.

Visit us!