Apple Card savings account service attracted over $400 million in deposits within 4 days of launch
Forbes reports that Apple recently launched the Apple Card Savings Account service, offering a 4.15% deposit interest rate. Within four days of its official release, the service attracted $990 million in deposits, accumulating $400 million on the first day alone. By last weekend, over 240,000 savings accounts were established.
Compared to data published by the Federal Deposit Insurance Corporation, the average savings account interest rate for banks within the United States ranges between 0.35% and 0.37%. Even with Goldman Sachs’ high-interest savings account service, “Marcus,” which has increased its annual interest rate to 3.9%, the 4.15% deposit rate offered by the Apple Card Savings Account service remains enticing, despite a maximum deposit limit of $250,000.
The significant number of users applying for savings accounts and depositing substantial sums indicates that Apple can attract more deposit funds than traditional banks and financial institutions. By generating greater financial liquidity through these funds and subsequently producing interest or investment income, Apple can seize more financial opportunities through its Apple Card Savings Account service compared to traditional banks that struggle to attract customers’ savings through various loan offerings.
Though there is a maximum deposit limit of $250,000, and single transfer amounts must be between $1 and $10,000 with a weekly transfer limit not exceeding $20,000, the Apple Card Savings Account service can still attract small deposit needs, catering to the majority of general consumers rather than targeting large depositors exclusively.
Consumers can transfer funds from their Apple Cash or other bank accounts to their Apple Card Savings Account to accumulate interest at a higher rate. Additionally, the Daily Cash rewards earned through Apple Card spending can also be transferred into the Apple Card Savings Account, allowing unused Daily Cash rewards to accrue interest as well.
With the successive launches of the Apple Card credit card, Apple Card Cash rewards service, and the recently introduced Apple Card Savings Account service, Apple has successfully attracted a large number of customers to establish savings accounts and make deposits. This may continue to disrupt and transform the traditional financial market further.