Apple Card’s newly launched savings account is another brick in the walled garden
As banks and credit unions fret about holding onto deposits, they might view the new high-yield savings account from Apple and Goldman Sachs in terms of competition for funding. But this would be missing the bigger picture. Apple isn’t playing quite the same game as traditional financial institutions.
Thinking that Apple Savings is simply a bid for Goldman Sachs to raise deposits is like thinking that iPhones are simply neat devices for making phone calls via a wireless carrier.
Apple launched its high-yield savings account on April 17, following through on its October 2022 announcement that its Apple Card program would be adding one. With many banking institutions focusing harder on deposit gathering and retention than they have in years, there might be an inclination to think of this move only in relation to funding. But there is more to consider.
How does Apple Savings measure up solely as a deposit-gathering move? And what is the bigger picture?
Apple Savings as Deposit Competition
The initial annual percentage yield on Apple Savings is an attention-getting 4.15%, which the tech giant brags is more than 10 times the national average as computed by the Federal Deposit Insurance Corp.
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