Apple Card Savings Accounts Surpass $10 Billion in Deposits
Apple’s latest financial service is off to a hot start, with the tech firm announcing that deposits have broken through a major milestone.
Recently, Apple announced that their high-yield saving account called Apple Card Savings had reached more than $10 billion in deposits. This achievement comes less than four months after the account launched. Previously, it was reported that Savings surpassed $1 billion within the account’s first days.
In the background:
News of Apple Card Savings’ deposit milestone comes amid reports that Goldman Sachs may be looking to offload its Apple portfolio. According to the Wall Street Journal, the bank was in talks with American Express regarding a possible sale of Apple’s financial products. While the Apple Card itself has proven popular, Goldman has continued to lose money on the program, due in part to higher-than-average charge-off rate.
What they’re saying:
Commenting on the early success of Apple Card Savings, the VP of Apple Pay and Apple Wallet Jennifer Bailey said, “With each of the financial products we’ve introduced, we’ve sought to reinvent the category with our users’ financial health in mind. That was our goal with the launch of Apple Card four years ago, and it remained our guiding principle with the launch of Savings.” Bailey continued, “With no fees, no minimum deposits, and no minimum balance requirements, Savings provides an easy way for users to save money every day, and we’re thrilled to see the excellent reception from customers both new and existing.”
Additionally, Goldman Sach’s head of Enterprise Partnerships Liz Martin said, “We are very pleased with the success of the Savings account as we continue to deliver seamless, valuable products to Apple Card customers, with a shared focus on creating a best-in-class customer experience that helps consumers lead healthier financial lives.”
Given the strength of Apple’s brand and the fandom surrounding the company, it’s no surprise that its Savings account has also been embraced by customers. — especially since the account offered an attractive interest rate. However, on that note, Apple has yet to keep up with the latest rate increases. When it was launched, Apple Card Savings bested the APY that Marcus was offering by 25 basis points. In contrast, Marcus is now up to 4.30% APY (as of August 7th) while Apple’s account remains at the 4.15% it launched with.
That minor rate oddity aside, Apple Card Savings has proven to be a solid idea that Apple Card customers are clearly pleased with. As for what this means for Apple’s future with Goldman, it’s hard to say — although these strong numbers could help the bank in trying to sell another institution on an acquisition. Whatever happens, expect the growth of Savings to continue for as long as the account can provide cardholders with a solid rate of return.