Apple taps Goldman Sachs for savings account

Apple has partnered with Goldman Sachs to launch a high-yield savings account that offers a 4.15% interest rate, more than 10 times higher than the US national average. The pplemove is the latest in a series of efforts by Apple to expand its financial services business. The new account provides customers with an incentive to move their funds from large banks such as Chase and Bank of America and into the Apple ecosystem. The account is managed through Apple products, and customers must have the Apple credit card to qualify. The account comes with no fees, no minimum deposits and no minimum balance requirements, according to Apple.

The interest payout on Apple’s savings account is about 415 times more than the 0.01% offered by Chase and Bank of America to their basic savings customers. Ted Rossman, a senior industry analyst at Bankrate, said the new account is not typical, as to get an Apple credit card, a customer needs an iPhone, and to get the savings account, they need the credit card. Rossman believes that Apple is creating an ecosystem of Apple cash, and the savings account is a loyalty play. The account is user-friendly, and users can set it up and manage it directly in the wallet app on their iPhones.

Goldman Sachs is Apple’s partner in this venture, and the Federal Deposit Insurance Corporation insures the Apple savings account. Chase and Bank of America are unlikely to be affected by this move, but it could impact the interest rate payouts that have remained stubbornly low. The pandemic stimulus money, lower demand for borrowing, and an influx of recent deposits mean the big banks have more cash than they need, and there is no incentive to pay higher interest rates.

This is not the first financial service product that Apple has launched. The company announced two weeks ago that it would enter the “buy now, pay later” industry with Apple Pay Later. This program allows users to pay for their purchases in four installments over six weeks, and they can manage their payments through Apple Wallet. Apple Pay Later users can also apply for loans between $50 and $1,000, which they can use for in-app and online purchases at stores that accept Apple Pay.