Apple and Goldman Sachs have introduced a new savings account in the US that pays over ten times the national average interest rate, with a yield of 4.15% per annum. The two companies first announced the product in October and officially launched it on Monday, April 17th. The interest rate offered by the Apple-Goldman Sachs savings account is significantly higher than the average US savings account rate of 0.37%, according to data from the Federal Deposit Insurance Corporation, and surpasses competitors such as American Express and Goldman Sachs’ Marcus brand, which offer 3.75% and 3.9% interest rates, respectively. The move is aimed at attracting US depositors to the new savings account.
The account has no fees or minimum deposit requirements, with a maximum balance limit of $250,000. Deposits will be held with Goldman, which has access to FDIC insurance. This move comes as regional and smaller lenders are under increasing pressure to offer better savings rates to retain depositors, who have withdrawn roughly $800bn in deposits from US commercial banks since March last year.
Jennifer Bailey, the Vice-President of Apple Pay and Apple Wallet, stated that the introduction of savings accounts provides greater value to their users while offering an effortless approach to saving money daily. The addition of a savings account to its suite of financial products is a significant expansion of Apple’s financial services offerings. This complements the existing buy now, pay later program and further establishes the company’s position in the financial services sector.
