BackApple stirs up competition with new high-yield savings account offering 4.5% interest rate
With the new account, Apple's goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet. The iPhone maker is offering interest rate which is more than 10 times the normal average.
PremiumApple Inc on Monday unveiled a high-yield APY savings account. The interest rate offered in this account will be 4.5% which is more than 10 times the national average. With this, Apple Card users can choose to grow their Daily Cash rewards. The interest rate offered by the iPhone maker is among many high-yield savings account offered by companies. The new rate has also escalated competition amid rising interest rates cycle.
Not just high interest rate, there are no minimum balance requirements or minimum deposit criteria on this accounts. Also, there are no fees! This enables users to easily set up and manage their Savings account directly from Apple Card in Wallet.
Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet said, "Savings helps our users get even more value out of their favourite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day."
Bailey added, "Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place."
According to Apple's press release, once a Savings account is set up, all future Daily Cash earned by the user will be automatically deposited into the account.
Users can easily change their Daily Cash destination at any time. Also, there is no limit on how much Daily Cash users can earn.
To further build their savings account, users can deposit additional funds into their savings account through a linked bank account, or from their Apple Cash balance.
Additionally, users will have an access to n easy-to-use Savings dashboard in Wallet, where they can conveniently track their account balance and interest earned over time.
Withdrawal of funds can also be done at any time through the dashboard of the account --- by transferring them to a linked bank account or their Apple Cash card, with no fees.
Notably, the new savings account is built by Goldman Sachs depending upon the financial health benefits that Apple Card already offers.
Following the new savings account of Apple, the Kobeissi Letter which is an industry-leading commentary on the global capital markets, said, "Large banks must raise interest rates to remain competitive."
In a Twitter thread, Kobeissi revealed that Apple's savings account rate of 4.15% is the latest of many high-yield savings accounts being offered by companies. It added, "The era of large banks paying 0.01% interest is ending."
As per Kobeissi, the average savings account in the US pays under 0.50%. Over the last month, more than $500 billion has been withdrawn from US banks. It believes that the Fed raising interest rates at the fastest pace in history is challenging the banking system.
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