Apple Savings accounts almost reached $1 Billion in four days
Apple recently announced its new Savings Account feature, and it reached the $1 billion milestone in only four days.
The company partnered with Goldman Sachs to offer a new Savings account feature only for US users with Apple Cards. According to the latest report, the American people have shown serious interest. Forbes says that the amount has reached $990 million in four days and is very close to the $1 billion milestone.
It is appealing to many Apple users thanks to its 4.15% annual return. Forbes added that around 240,000 new accounts were created since launch, showing the interest among US users. Another note in the report says that almost $400 million were deposited on the launch date. Most Apple Cards users saw the opportunity and didn't want to miss it a single day.
- Also read: How to open an Apple Card Savings account?
"Banks have quickly responded to the Fed's interest rate hikes with higher mortgage and car loan rates, but savers have seen little to no increase in traditional bank deposits or savings accounts. There's an outflow to CDs, money market funds, and fintechs like Apple," said Richard Crone, CEO and founder of payments firm Crone Consulting.
Apple Savings Accounts launched on April 17
It was first discovered in the backend code by a user, and shortly after that, Apple officially announced its new feature for Card users on April 17. Apple Card holders may deposit funds into Goldman Sachs' new Savings account and earn Daily Cash rewards with a 4.15 percent APY. According to Apple, the rate is more than ten times the national standard.
"Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day. 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," Jennifer Bailey, VP of Apple Pay and Apple Wallet, said.
Right now, it is only available for US users, and it is unclear whether Apple wants to team up with other banks in the world to make it available for other users.Advertisement