Last week, Apple launched yet another service instead of new hardware. Users of the Apple Card can now open a savings account that offers a high-yield APY of 4.15% — a rate that is more than 10 times the national average. There are no fees, no minimum deposits, and no minimum balance requirements; users can easily set up and manage the savings account directly from their Wallet on the iPhone.
“Our goal is to create tools that help users lead a healthier financial life, and the creation of savings on the Apple Card allows them to spend, send, and save Daily Cash in a direct and continuous way, all in one place,” said Jennifer Bailey, Vice President of Apple Pay and Apple Wallet at Apple.
She explains that once a savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account. The destination of Daily Cash can also be changed at any time and there is no limit to how much Daily Cash users can earn. To further boost their savings, users can deposit additional funds into their savings account via a linked bank account or from their Apple Cash balance.
The savings account, like the Apple credit card, is offered in partnership with Goldman Sachs.
Why is Apple expanding its services into the banking sector?
The Apple savings account is unlikely to become the company’s “breadwinner” — and it may not significantly impact its revenue numbers. But it could play a crucial role: retaining iPhone customers, the company’s flagship product.
If you keep your savings in an Apple savings account and use the company’s credit card, the likelihood of you keeping an iPhone — even just to manage those accounts — increases. That’s what Apple and its investors want.
It’s all about adding more pieces and keeping you hooked on them!