Apple and Goldman Sachs have teamed up to launch a new high-yield savings account that offers a 4.15% interest rate, more than ten times higher than the US national average. The move is the latest in a series of financial services offerings from Apple, which aims to expand its footprint in the sector and compete with big banks. While the interest payout on Apple’s savings account is significantly higher than what Chase and Bank of America offer their basic savings customers, Ted Rossman, a senior industry analyst at Bankrate, suggests that Apple is creating an ecosystem of Apple cash to enhance customer loyalty rather than compete with big banks. Users must have Apple’s credit card, Apple Card, to qualify for the savings account, which is managed through Apple products.
The account comes with no fees, no minimum deposits, and no minimum balance requirements, and users can set up and manage their account directly in the wallet app on their iPhones. The account is insured by the Federal Deposit Insurance Corporation. While the biggest banks in the US have refused to shift their savings rates higher, Apple’s move could incentivize some change in the industry. However, Apple’s savings account is not the best on the market, ranking 11th on Bankrate’s list of best interest rates, while UFB Direct offers a savings account with more than a 5% annual percentage yield, and Vio Bank and CIT Bank offer 4.77% and 4.75% interest rates, respectively.