ONE increases savings rate

ONE, a fintech company backed by Walmart Inc, has launched a new savings account offering a 5% interest rate on deposits up to $100,000, according to a source familiar with the matter. This move comes as the competition for consumer deposits heats up in the financial industry.

The 5% interest rate offered by ONE is more than 12 times the national average of 0.4%, as reported by the Federal Deposit Insurance Corporation. In comparison, Apple Inc started offering 4.15% on its Apple Card savings accounts in collaboration with Goldman Sachs Inc, while Step, a fintech app targeting younger customers, offered a 5% rate in May.

To qualify for the high-interest rate, ONE account holders must meet certain criteria. They need to have received a direct deposit of at least $500 in the previous month, maintain a total daily balance of $5,000, or opt for automatic savings from their paycheck. Other savings balances outside these parameters will continue to receive a 1.00% annual percentage yield.

Banks across the United States are striving to attract customers by offering incentives such as bonuses for opening new accounts or making regular deposits. This push comes after the collapse of Silicon Valley Bank and Signature Bank in March due to a significant outflow of depositors seeking higher yields.

ONE operates under the banking services charter of Coastal Community Bank and provides both physical and virtual debit cards. Although majority-owned by Walmart, ONE operates independently in the fintech space.

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