On April 17, Apple announced its new Apple Card Savings Account through Goldman Sachs. The savings account has no fees, minimum deposits, or balance requirements. Additionally, the account offers an annual percentage yield (APY) of 4.15% — nearly 10 times more than the national average of 0.35%. The account can be set up directly in the Wallet app of an iPhone.
Now, after just a few weeks, it looks like Apple’s expansion into banking is paying off.
Two unnamed sources “familiar with the matter,” told Forbes that on the first day of launching the savings account, deposits reached nearly $400 million. By day four, deposits were up to $990 million, and at the end of launch week, about 240,000 accounts were opened.
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The overnight success of Apple’s savings account could be attributed to the easy sign-up process, which is already built into the iPhone. Also, with the high 4.15% APY, Apple positioned its savings account as a service hard to turn down.
Apple’s savings account entered the competition amid a turbulent time in banking and prohibits users from depositing more than the FDIC insurance limit of $250,000.
Since the start of 2023, three major banks have collapsed: Silicon Valley Bank, Signature Bank, and First Republic Bank on Monday, the collapse of which was partly due to a high level of uninsured deposits (deposits that exceed the FDIC’s limit of $250,000). JP Morgan Chase is buying its assets and will convert all 84 First Republic Banks into branches of JP Morgan, Reuters reported. As part of the deal, JP Morgan will pay $10.6 billion to the FDIC.
Entrepreneur has reached out to Apple for confirmation of the deposits.