Apple Makes More Fintech Moves With High-Yield Savings Account From Goldman Sachs
Apple is one of the most successful companies in history, and it has a long track record of disrupting one industry after another. From the desktop computer to digital music, the smartphone and more, Apple has put a differentiating stamp on its products, winning the company a $2 trillion market cap and a cult following over time. This week Apple announced the latest of its many disruptive fintech offerings—a high-yield savings account for Apple Card holders, offered through Goldman Sachs.
Apple’s new savings account pays 4.15% APY (annual percentage yield), ten times the national average, with no fees or minimums. Apple says the bank account is meant to “help users lead healthier financial lives” by allowing customers to save more and earn more interest.
The announcement, along with other launches in previous months, has people questioning whether Apple has its sights set on disrupting banking, too, and whether its legions of avid fans will show their loyalty with their wallets. Let’s look at Apple’s recent fintech developments, their significance in the fintech ecosystem and what they mean for consumers.
A set-it-and-forget-it way to save money
Apple Card users can link the new Goldman Sachs savings account to their cards; once they do, they can immediately put balances from Daily Cash into an interest-generating account instead of letting it accumulate in Apple Cash. Previously, Apple Card users earned 1–3% cash back on every purchase in Daily Cash, which was automatically added to an Apple Cash balance, where they could use it to pay for purchases or transfer it to another account.
The new savings account has no minimum and zero fees but carries a $250,000 maximum deposit, limiting the interest earned at the high yield rate. In addition to Daily Cash, users can deposit funds through checks or ACH transfers from outside accounts. The Goldman Sachs account is in direct competition with banks and smaller fintechs that have offered higher-yield saving accounts in the wake of higher interest rates. For example, digital bank SoFi has a higher-than-average 4.0% APY, and Goldman offers its own Marcus savings product at 3.9%.
The higher-rate trend from challenger banks…