Apple’s new high-yield savings account has seen immediate success, with the company recording $990 million in deposits in less than a week after its launch. The number of users who have signed up for the service has also reached 240,000 in that time. The new savings account is a new addition to the company’s successful mobile payments platform.
Apple’s new savings account puts the company in a good position as a major fintech player overnight. With parts of the company’s laptop business not performing as well in 2023, Apple is looking to its savings account to help boost its profits. The company may share more information about its savings account when it releases its latest quarterly report.
The savings account offers an annual interest rate of 4.15 per cent, which is well above the national average rate of .24 per cent according to Bankrate. The credit card offered by Apple doesn’t have annual or late fees and has a total APR that depends heavily on the user’s credit history. However, the savings account is more restrictive than other banks and is specifically geared toward diehard Apple users who own an iPhone using iOS 12.4 or later and have an Apple ID with an associated iCloud account “in good standing.”
Apple’s success with its new savings account may be due to its high yield, its loyal customer base, and the timing of its launch, with rising interest rates causing issues for some banks.
The sources for this piece include an article in Gizmodo.