Apple Launches Apple Card’s High Yield Savings Accounts in Partnership with Goldman

Techcrunch | Romain Dillet | Apr 18, 2023

Image: Unsplash/Laurenz Heymann

Apple Card customers in the U.S. can now open a savings account and earn interest through an Apple saving account.

• Apple has partnered with Goldman Sachs once again for the banking feature. Savings accounts are technically managed by Goldman Sachs, which means that balances are covered by the Federal Deposit Insurance Corporation (FDIC).
• This high-yield savings account has been created specifically for Apple Card customers.  Apple is going to offer an APY of 4.15%. It looks like a competitive offering when you look at data from Bankrate — you can currently find savings accounts that offer an APY of 3.5% to 4.75%. The company isn’t making any promise when it comes to future interest rates. It could go up and down at any time.

See:  Goldman Sachs Drops Plans for Retail Credit Card

• When customers pay with their Apple Card, they get cash back on all purchases. By default, all purchases grant you 1% in cash rewards and 2% for all purchases made using Apple Pay. Purchases with select merchants unlock 3% in rewards.
• No fees: There are no fees associated with Apple’s savings account. However, there is a maximum balance limit of $250,000. The APY of 4.15% applies to any sized balance and there is no minimum balance required.

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CNBC | Kif Leswing | Apr 18, 2023

Goldman Sachs is watching for ‘cannibalization’

• Goldman has announced plans to become a large digital bank, perhaps competing at times with Apple to sign up new customers.
• Solomon said Goldman would welcome the deposits from Apple’s savings account and would deploy them within its own client base.

See:  Apple Finally Unveils its BNPL Offering. 4 Things to Know Before Signing Up

Goldman Sachs CEO David Solomon:

“We’ve obviously worked very closely at the overlap between who holds credit cards and who has a Marcus deposit, and that overlap is small” Solomon said on his company’s earnings call. “But we’ll obviously watch closely to see whether or not there’s any cannibalization.  Its a way for us to try to open up another deposit channel” and said “it’s always good for us to broaden our deposit base.”

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