More Than $10 Billion Deposited in Apple Card Savings Accounts

[MacRumors]

Apple Card holders have deposited more than $10 billion in Apple Card Savings accounts that are provided by Goldman Sachs, Apple announced today.

The Savings accounts first launched in April, so that milestone comes at the four month mark. Apple says that 97 percent of Savings customers have opted into having their Apple Card Daily Cash automatically deposited into the account, which offers a 4.15 APY.

"With each of the financial products we've introduced, we've sought to reinvent the category with our users' financial health in mind. That was our goal with the launch of Apple Card four years ago, and it remained our guiding principle with the launch of Savings," said Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet. "With no fees, no minimum deposits, and no minimum balance requirements, Savings provides an easy way for users to save money every day, and we're thrilled to see the excellent reception from customers both new and existing."

In a statement, Goldman Sachs Head of Enterprise Partnerships said that the company is "very pleased" with the Savings account success.

Apple Card continues to be limited to iPhone users in the United States, which means the Apple Savings account is only available in the U.S. Apple's announcement comes amid reports that its relationship with Goldman Sachs is on the rocks. Goldman Sachs is allegedly looking to get out of its partnership with Apple as it aims to exit the consumer banking business.

Apple and Goldman Sachs have worked together on the Apple Card since 2019, but Goldman Sachs wants to abandon the deal because it is not making enough money and it has had trouble dealing with customer service issues. The Savings account in particular soured the relationship between the two companies because early customers saw long wait times when attempting to withdraw money.

Goldman Sachs is said to be aiming to have American Express or another company take over its deal with Apple, but the terms are not favorable because the Apple Card lacks fees, and other companies do not find the deal appealing.

Article Link: More Than $10 Billion Deposited in Apple Card Savings Accounts

 

[imlynxy]

I doubt they keep going to grow tge same pace, Capital One and Discover give 4.3% and have no withdrawal problems.

 

[jz0309]

yet, GS wants out of this ...

 

[TheYayAreaLiving 🎗️]

Dang! That's a good chunk of savings money. It's time to raise the APY to 5% now.

I get more with a Discover savings account. The account was opened when I opened my Apple Savings Account. Also, Discover tends to keep increasing my APY. This is the 3rd time they have increased it since the account has been opened.

 

[ProfessionalFan]

I had moved over a little when my Capital One was at 3.25 and Apple was 4.15. But since then Capital One steadily increased and is now 4.30. I moved basically everything back to Capital One.

 

[jz0309]

I doubt they keep going to grow tge same pace, Capital One and Discover give 4.3% and have no withdrawal problems.

bet that if you were digging in, you'll find enough people complaining about issues, just that since Apple is not involved it makes them less "click and bait friendly"

 

[munpip214]

Interest rates have gone up 0.5% since Apple launched. Time to move up!

 

[ProfessionalFan]

I doubt they keep going to grow tge same pace, Capital One and Discover give 4.3% and have no withdrawal problems.

Yeah the withdrawals are way too slow. The first time I figured it was because it was my first withdrawal. But now months later and on not a huge amount amount of money, it took about a week. Capital One, Discover, Chase all are quicker there in my experience.

 

[LeeW]

yet, GS wants out of this ...

Of course, they realize now that consumer banking is really not all that attractive.

 

[Bigkool2inSC]

unless I am doing the math wrong, that's 415,000,000 in a year in interest that they would have paid to the account holders.
I got some change in there I get a pretty decent chunk in interest every month.

Doesn't sound that profitable to me.

 

[neuropsychguy]

I had more in my account but with SoFi at 4.5%, my savings is mostly there now.

 

[Apple Fan 2008]

That's a lot of money for just one country!

 

[CIA]

Take all that money and deposit it into one of the many banks offering a higher interest rate these days, pocket the difference! <PROFIT!> 😃

 

[xraydoc]

They have $10 billion -- with a "B" -- that they can invest (which is how they make their money and the interest they pay you) and they still can't make a profit off that? I thought Goldman Sach was filled with accountants?!

 

[tgwaste]

The problem with all of this is that I can only manage these finances on iPhone. Thats not good. We need a mac version of the wallet app.

 

[ProfessionalFan]

The problem with all of this is that I can only manage these finances on iPhone. Thats not good. We need a mac version of the wallet app.

yep. Besides the slow withdrawals and the lower interest rate, that’s another reason I moved off apple savings. It needs a wallet app on Mac and/or web access to manage it.

 

[tgwaste]

unless I am doing the math wrong, that's 415,000,000 in a year in interest that they would have paid to the account holders.
I got some change in there I get a pretty decent chunk in interest every month.

Doesn't sound that profitable to me.

When they are making 7-10% its quite profitable.

 

[frumpywumpy]

I had moved over a little when my Capital One was at 3.25 and Apple was 4.15. But since then Capital One steadily increased and is now 4.30. I moved basically everything back to Capital One.

ditto

 

[Bigkool2inSC]

I got pretty good system now with the Apple MasterCard.

I use it for everything I can pay online.
Use it as the default apple pay on watch and phone.
This allows at least 2% to go to that savings account.

Then I move most of my pay to that savings account to let it collect interest as long as possible.
I pay the apple card on the last day of the month with the minimum balance for the previous month.

This allow more of the money to stay in savings to collect more interest.

trying to milk it for everything I can.

 

[centauratlas]

When they are making 7-10% its quite profitable.

Exactly.

Look at the NNI and you can see how it is profitable. And it is reasonably sticky as long as the rate is somewhat competitive. And it is auto depositing Apple Card earnings.

Let’s face it, if I have $200 in there, I won’t open a new account and do transfers for an extra 0.1% per year.

 

[performa_6400]

It should be an easy sell to move these deposits to different bank.

 

[k1121j]

AMEX just raised their APY to the exact same as the Apple savings.... HMM

 

[xxray]

Interest rates have gone up 0.5% since Apple launched. Time to move up!

This. 4.15% was a big jump from the savings account I was in before, but now my old account has a higher interest rate than the Apple one. Interest rate wasn't the sole reason I moved to Apple, but it was the biggest one.

 

[sw1tcher]

In a statement, Goldman Sachs Head of Enterprise Partnerships said that the company is "very pleased" with the Savings account success.

Of course GS is very pleased with the Apple Savings account. They're not losing money with it like on the Apple Card

 

[sw1tcher]

I doubt they keep going to grow tge same pace, Capital One and Discover give 4.3% and have no withdrawal problems.

Dang! That's a good chunk of savings money. It's time to raise the APY to 5% now.

I get more with a Discover savings account. The account was opened when I opened my Apple Savings Account. Also, Discover tends to keep increasing my APY. This is the 3rd time they have increased it since the account has been opened.

View attachment 2240645

Discover is 4.35% APY