Apple’s high-yield savings account
Apple Card holders have the option to increase their Daily Cash rewards by opening a Savings account with Goldman Sachs, which offers a high-yield annual percentage yield (APY) of 4.15 percent. This rate is over 10 times the national average and requires no fees, minimum deposits, or balance requirements. Users can easily create and manage their Savings account from the Apple Card in Wallet. Once a Savings account is set up, all future Daily Cash earnings will be automatically deposited into the account, and users can also deposit additional funds through a linked bank account or Apple Cash balance to further increase their savings. Users can change their Daily Cash destination at any time, and there is no limit to how much Daily Cash they can earn.
Users can track their Savings account balance and interest earned over time through an easy-to-use dashboard in Wallet. They can also withdraw funds at any time by transferring them to a linked bank account or their Apple Cash card, without any fees. The new Savings account from Goldman Sachs further enhances the financial health benefits already provided by the Apple Card, including no fees, Daily Cash on every purchase, and tools to help users pay less interest. All of this is done while maintaining the privacy and security that Apple users expect.
Movement of Apple stocks in the last five years. (Source: Trading Economics) *
Overshadowing of Goldman Sachs’s Marcus
Goldman Sachs CEO David Solomon stated that he is not concerned about Apple's new savings account stealing the spotlight from Goldman's Marcus offerings, but he is keeping a close eye on the possibility of cannibalization. On Tuesday, one day after Apple introduced its new savings accounts with an annual percentage yield exceeding 4%, the Wall Street firm released its first-quarter results. Although Apple administers the new accounts through the iPhone with its brand, Goldman Sachs is its financial partner. The relationship between Apple and Goldman is unique as it combines two iconic brands from different industries and highlights the trend of technology giants expanding into financial services, which may lead to competition. Apple creates features for its iPhone and Wallet app, including its Apple Card credit card, while Goldman is the bank that powers the company's financial services.
Goldman aims to become a significant digital bank, which could potentially put it in competition with Apple for new customers. For instance, Marcus provides high-yield savings accounts. The bank's consumer-focused division that handles Apple and Marcus partnerships has encountered challenges such as postponed projects, leadership changes, and regulatory investigations. Solomon stated that Goldman would welcome deposits from Apple's savings account and would use them for its own client base.
Movement of Goldman Sachs stocks in the last five years. (Source: Trading Economics) *
All in all, it seems that this partnership could have potential benefits for both if they will stay away from each other’s field. It will be interesting to see, how Apple’s idea of high-yield saving account will evolve, and what good it will bring to them – or what bad it will bring to their competitors.
* Past performance is no guarantee of future results.