Global smartphone major Apple Inc, along global investment bank Goldman Sachs Group Inc, has announced a new high-yield savings account for its Apple Card subscribers, offering a 4.15% annual percentage yield (APY).
The service is launched in the US for now, but Apple may be eying a global foray to tap into the thriving fintech market. The current rate of interest offered by Apple on the savings account is more than 10 times the national (US) average, the company said in a statement.
Apple says new savings account from Goldman Sachs builds upon the financial health benefits that Apple Card already offers, with no fees, daily cash on every purchase, and tools that encourage users to pay less Apple Card interest.
For reference, most banks in India offer interest rates up to 4.25% on savings up to ₹1 lakh. The current offering by Apple is aimed at luring its strong customers to remain glued to the Apple platform.
"With no fees, no minimum deposits, and no minimum balance requirements, users can easily set up and manage their savings account directly from Apple Card in Wallet," the company said.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said savings will help Apple users get even more value out of the Apple Card benefit — daily cash — while providing them with an easy way to save money every day.
“Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place.”
The company said once a savings account is set up, all future daily cash earned by the user will be automatically deposited into the account. "The daily cash destination can also be changed at any time, and there’s no limit on how much daily cash users can earn. To build on their savings even further, users can deposit additional funds into their savings account through a linked bank account, or from their Apple Cash balance."
Additionally, users will also have access to an easy-to-use savings dashboard in their wallet, where they can conveniently track account balances and interest earned over time. "Users can also withdraw funds at any time through the savings dashboard by transferring them to a linked bank account or to their Apple Cash card, with no fees," the company said.
The tech giant also unveiled the Pay Later feature in its Apple Wallet app during the WWDC event in June 2022. Apple Pay Later provides users with a way to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees of any kind. With this announcement, Apple wants its customers to buy products using Apple Pay.
Apple chief executive officer Tim Cook, meanwhile, opened the doors of Apple’s first retail store in India, Apple BKC, in Mumbai’s BKC (Bandra Kurla Complex) business district. The Apple CEO arrived in Mumbai on Monday where he met Reliance Industries chairman Mukesh Ambani and Tata Sons chairman N Chandrasekaran. Ahead of the launch of the Apple BKC store in Mumbai, Cook said the tech giant is excited to build on its over 25-year history in India.
