Apple’s savings account has reached over $10 billion, after earning $1 billion within days.
Apple's savings account has reached over $10 billion, after earning $1 billion within days.
Apple’s New Savings Account: A Breakdown of its Success
In April 2023, Apple made a surprising move and ventured into the world of high-yield savings accounts by launching their own offering. With an attractive Annual Percentage Yield (APY) of 4.15%, this new account quickly caught the attention of many savers looking for a better return on their money. And the results were astounding – within the first day of its launch, the Apple savings account brought in almost $400 million in deposits. Within just four days, that number increased to nearly $1 billion. Fast forward a few months, and the account has already topped $10 billion in deposits. It seems that Apple has struck gold in the realm of personal finance.
One of the key factors behind the success of Apple’s savings account is its partnership with Goldman Sachs. In a press release, Liz Martin, Goldman Sachs’s head of Enterprise Partnerships, expressed her delight with the account’s success, stating that they are focused on delivering seamless and valuable products to Apple Card customers. This collaboration aims to create a best-in-class customer experience that helps individuals lead healthier financial lives.
The timing of Apple’s entry into the high-yield savings market couldn’t have been better. Savings rates have been on the rise following a series of interest rate hikes by the Federal Reserve. Now, some of the top-earning high-yield savings accounts on the market are offering rates over 4%. This upward trend has created a fertile ground for Apple’s offering to flourish.
Despite the fierce competition in the financial sector, Apple managed to make a splash with their savings account by catering specifically to their loyal Apple Card users. To open this account, users need to possess an Apple Card and can easily set up and access their savings account through the Wallet app. The account has no fees, no minimum balance requirements, and no minimum deposit. Moreover, all deposits are FDIC insured, with a maximum balance limit of $250,000. This package has proved to be quite appealing to users, as demonstrated by the high adoption rate.
According to a Forbes report earlier this year, approximately 240,000 Apple savings accounts were opened within a week of the account launch. This figure implies that the average account balance at the end of launch week was slightly over $4,000. These numbers clearly show how quickly and eagerly Apple Card users embraced this new financial tool.
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The Apple savings account is not just about high yields and convenience; it is also designed to be part of a holistic financial platform that simplifies and enhances users’ financial lives. Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, emphasized this in a press release, stating that their goal is to build tools that help users lead healthier financial lives. By integrating the savings account into the Wallet app, users can seamlessly manage their spending, sending, and saving activities all in one place.
In conclusion, Apple’s foray into the high-yield savings account market has been a resounding success. With an enticing APY, no fees or minimum balance requirements, and a seamless user experience, it is no wonder that people flocked to deposit their money with Apple. This move showcases Apple’s power to disrupt industries outside of technology and suggests that they may continue to explore new sectors in the future.
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