Bloomberg reports that Apple has teamed up with Goldman Sachs to introduce a high-yield savings account as it looks “to attract US financial clients with an attractive rate and the ease of its Wallet app.”
According to the story, “The new offering will let Apple Card users earn a 4.15% annual yield, more than 10 times the national average … The account has no fees, minimum deposit or balance requirements and can be set up from within the Wallet app.
“The move thrusts the tech company’s clout into a broader fight for depositors, potentially adding to the pressure on other financial firms that are trying to protect their funding. Small and midsize banks, in particular, have been facing withdrawals this year, as savers chase higher returns elsewhere or move their money to safe havens, such as JPMorgan Chase & Co., in the wake of Silicon Valley Bank’s collapse last month.”
KC’s View:
Probably a propitious time for a company often described as the world’s most trusted brand to get into a business that a lot of folks are skittish about these days.
At its core, this is about sucking people into the Apple ecosystem, in the same way that ApplePay has in many ways transformed the mobile payments business. In many ways, this seems like an irresistible offer – paying higher interest rates, allowing customers to create savings accounts with “spare change,” and connecting it all through the Apple Wallet app.
And Apple gets to continue to build trust, expand the networks served by its devices, and create connections that will be sustained and grown over time.
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