Apple Launches High-Yield Savings Account, Garners $990 Million in Deposits

The new savings account offers an annual percentage yield (APY) of 4.15 percent, which is significantly higher than the rates offered by major Indian banks such as the State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), and others.

Apple has unveiled a new savings account feature integrated with its Apple Card, developed in collaboration with Goldman Sachs. The savings facility will be accessible through the Apple Wallet app on iPhones, according to a press release issued by Apple.

Currently available exclusively in the United States, there are reports suggesting that Apple is exploring the possibility of expanding its presence in the global fintech market.

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Insiders familiar with the matter revealed that the Apple Card savings account attracted an impressive $990 million in deposits within its first four days. On its launch day alone, it garnered nearly $400 million in deposits. By the end of the launch week, approximately 240,000 accounts had been opened, as reported by Forbes.

The new savings account offers an annual percentage yield (APY) of 4.15 percent, which is significantly higher than the rates offered by major Indian banks such as the State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), and others.

For instance, SBI provides an interest rate of 2.70 percent on savings deposits below Rs. 10 crore. Smaller banks and neo banks offer a higher comparable rate than the Apple Savings account. Additionally, the interest rate on the Apple Savings account is more than 10 times the national average in the United States.

Eligibility for the account does not require a minimum deposit, balance, or fee. However, users must possess an Apple Card to open the account, which can be set up directly from the Wallet app on their iPhones.

Apple stated in the press release that once users link their Goldman Sachs account, all the Daily Cash earned through their Apple Card will be deposited into the savings account, with additional interest earned. Daily Cash, part of Apple’s rewards program, provides 3 percent cashback on purchases made with the Apple Card. Users can also add funds from their bank accounts.

The Apple Wallet will feature a user-friendly savings dashboard, enabling users to easily track their account balance and accrued interest over time. Funds can be withdrawn at any time through the savings dashboard by transferring them to a linked bank account or the user’s Apple Cash card, without incurring any fees.

Vice President of Apple Pay and Apple Wallet, Jennifer Bailey expressed the company’s mission to develop tools that promote healthier financial lives, emphasizing that incorporating savings into the Apple Card in Wallet allows users to conveniently spend, send, and save Daily Cash, all from a single location.

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This move further solidifies Apple’s position in the fintech industry. Previously, the company introduced “Apple Pay Later,” a Buy Now Pay Later feature that enables users to divide purchases into four interest-free payments without any fees.

Apple users can easily monitor, manage, and repay their Apple Pay Later loans within Apple Wallet. The loan amounts range from $50 to $1,000 and can be utilized for online and in-app purchases made on iPhone and iPad with merchants accepting Apple Pay.

Recently, Apple expanded its presence in India with the launch of its first official stores in Mumbai and New Delhi, underscoring the company’s growing ambitions in the country.