Apple has launched a new savings account linked to its Apple Card. The new savings facility has been built in partnership with Goldman Sachs and will be available in the Apple Wallet app on iPhones, Apple said in a press release.
The service is currently available only in the United States, but Apple is reportedly considering a global foray into the fintech market.
Two sources familiar with the matter said that the Apple Card savings account brought in as much as $990 million in deposits over its first four days. It brought in nearly $400 million in deposits on launch day alone, and by the end of the launch week, roughly 240,000 accounts had been opened, Forbes said in a report.
Apparently, this savings account offers a high annual percentage yield (APY) of 4.15 per cent. The rate of interest offered is much higher than those offered by large Indian banks such as the State Bank of India (SBI), HDFC Bank, ICICI Bank, and Punjab National Bank (PNB) among others.
For comparison, SBI is providing a rate of interest of 2.70 per cent on savings deposits less than Rs. 10 crore. Smaller banks and neo banks are offering a higher comparable rate to Apple Savings account. The Apple Savings account rate of interest is also more than 10 times the national average in the US.
The account will require no minimum deposit or balance or fee, but users must have an Apple Card to open the account. Users can set up the account from the Wallet app on their iPhones.
Apple said in the press release that once users set up this Goldman Sachs account, all the Daily Cash they earn on their Apple Card will be deposited into it, and they will also earn interest on it.
Daily Cash, one of Apple’s reward program offers a 3 per cent cashback on purchases from the Apple Card. Users can also add funds from their bank accounts.
According to Apple, users will 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 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.
Says Jennifer Bailey, vice president, 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.”
Apple In Fintech
Apple had previously launched “Apple Pay Later,” a Buy Now Pay Later facility, which allowed users to split purchases into four payments with zero interest and no fees.
Apple users can easily track, manage, and repay their Apple Pay Later loans in one convenient location in Apple Wallet. The loan amount can be from $50 to $1,000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay.
The first official Apple stores in India were launched in Mumbai and New Delhi recently, highlighting the company’s expanding ambitions in the country.