On 13th October 2022, the tech giant Apple announced its partnership with an investment banking company, Goldman Sachs, to offer savings accounts to Apple credit card holders.
A statement by Apple says that the Apple Card users will be able to open the new high yield savings account and have their daily cash automatically deposited into it with no fees, no minimum deposits and no minimum balance requirements.
The savings account scheme builds on the existing credit-card partnership between Apple and Goldman Sachs. Goldman remains a key partner for Apple even though the tech company works to shift more of its financial-services offerings in-house. The savings account will be offering various benefits to the Apple Card Users by generating interest on their cashback that arrives in one, two or three percent increments depending on whether the purchases are made via Apple pay, on Apple products or with other selected merchants. The savings account service is currently limited to the United States and will allow Apple Card users to save the Daily Cash they earn in an account. Daily cash are the rewards the Apple Card users earn on transactions.
The deposits and the withdrawals in the Apple savings account works in a very simple manner. Apple has informed that the users can freely deposit and withdraw money from their Apple savings account through a linked Bank Account. Additional funds can also be deposited by the users into their Savings Account through a linked bank account or from their Apple Cash Balance. Funds can also be withdrawn by the users at any time by transferring them to a linked Bank Account or their Apple Cash Card, with no fees required.
Although the company hasn't revealed the exact percentage of the interest but claims to have a "high-yield". In a Statement to CNBC , an Apple representative said that the interest rates will be competitive with the best rates available but will be the same for all users. The annual yield offered by Goldman Sachs through its Marcus brand is 2.15%.