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Nearly $1 Billion Deposited by Apple Card Owners Four Days After Savings Account Launch

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Apple on April 17 introduced the Apple Card Savings account, and it turns out that it was highly popular with iPhone users. The new Apple-branded high-yield savings account saw up to $990 million in deposits during the first four days after launch, according to Forbes.

apple-card-savings-account-16x9.jpg

Forbes says that it spoke with two anonymous sources with knowledge of how the Apple Savings account performed shortly after launch, but the deposit total has not been officially confirmed by Apple or by Goldman Sachs, Apple's partner on the Apple Card Savings venture.

During the first day alone, Apple Card owners deposited $400 million, which is perhaps not a surprise given Apple's large iPhone user base in the United States. By the end of the week, approximately 240,000 accounts had been opened.

The Apple Savings account is limited to Apple Card holders, and it allows them to deposit the Apple Cash earned from the Apple Card directly into the account. Apple Card holders can also deposit additional money from a checking account into the Apple Card Savings account, where it will earn interest.

Apple is offering a 4.15% APR at the current time, which is appealing when combined with the ease of opening the savings account. Creating an account takes just a couple of minutes for those who already have an Apple Card, and it works like any other savings account. There are no fees and there is no minimum balance, though accounts can't exceed the $250,000 FDIC insurance limit.

The competitive APR and the simplicity of the Apple Savings account will give it an edge over competing high-yield savings account providers. Getting a higher rate for a savings account typically requires dealing with a digital bank, and not many popular financial companies are able to compete with Apple on APR. Citi Bank, for example, has a 3.85% rate, and Discover is at 3.75%. American Express also offers a 3.75% APR, while Capital One is at 3.50% and Barclays is at 4%.

Like the Apple Card, the Apple Savings account is managed from the Wallet app, and earnings can be tracked through a simple, informative interface.

Article Link: Nearly $1 Billion Deposited by Apple Card Owners Four Days After Savings Account Launch
 
Article Link
https://www.macrumors.com/2023/05/01/apple-card-savings-account-deposits/
TheYayAreaLiving 🎗️ said:
I'm ready to make some serious money from my Apple Card Savings Account.

Apple better not change its mind on that 4.15% APR rate. More deposits to come in the future! We are locked in now! Let's go!!
Click to expand...

They 100% will change the interest rate, I expect it will stay competitive, but it will change along with short term interest rates. Right now short term interest rates are high which is why we are seeing so many of these high yield savings accounts popping up or being promoted.
 
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How much is the US tax on savings account interests?

Edit: "Savings account interest is taxed as income by the federal government. Interest earnings of more than $10 are reported to the IRS and to you by the bank or other institution where the money is deposited using a 1099-INT form. You are required to report all interest received on your tax return, however, even if it is less than $10 and whether or not you receive a 1099-INT. Interest income is free of payroll taxes, but you’ll pay income taxes on it at your ordinary rate."
 
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TheYayAreaLiving 🎗️ said:
I'm ready to make some serious money from my Apple Card Savings Account.

Apple better not change its mind on that 4.15% APR rate. More deposits to come in the future! We are locked in now! Let's go!!
Click to expand...
They are going to, because the rates will follow whatever the fed does.

4.15% isn't even the highest paying savings account out there. Amazing that people will put their money into this without doing one minute of research to see there are better options.
 
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Reactions: JohnArtist, chouseworth, locovaca and 20 others
Thoroughly pleased with the ease of setup and GUI of the Apple Savings account.

I do have one question though, is there a way to setup/schedule a recurring pull from your bank, instead of one that pushes to Apple Savings from your bank? Unless I missed it, this is the only drawback right now. I had to do it through my bank for weekly transfers to Apple Savings but would have preferred if I could have done it from the Apple end.
 
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If I opted to use Apple Savings and their credit card, is there a way to use the funds to a). Pay bills that don't take credit cards - like with checks or bill pay or something (handyman, gardener, etc. that don't take Zelle, etc.), and b). have companies be able to auto-debit funds (think Verizon) every month?
 
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yg17 said:
They are going to, because the rates will follow whatever the fed does.

4.15% isn't even the highest paying savings account out there. Amazing that people will put their money into this without doing one minute of research to see there are better options.
Click to expand...
I have said it before and will say it again.

people can have multiple savings accounts 😱. what makes you think people depositing into Apple don’t know what other higher yields are out there?

and… who cares anyway. Apple has no minimum and is just a more seamless/integrated experience than those other nameless accounts you mentioned.
 
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Reactions: joshwenke, JohnArtist, CodeRaven and 21 others
$1b in new deposits over four days? That's a lot of new money to take care of. I hope the risk managers and reserves managers at Marcus are better than the managers at Silicon Valley Bank, Signature Bank, and First Republic Bank were!!! Unless you're a JPMorgan Chase shareholder...
;-)

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ETA
For context, as of September 2022, Marcus held about $14b in credit card loans (i.e. people who owe money on their credit cards) and about $113b in deposits, of which $92 million was classified as "Savings and demand" (i.e. accounts similar to Apple Card Savings) and $21 million as "Time" (i.e. CDs and accounts with required holding periods). So the Marcus total deposit base increased by almost 1% in less than a week.
 
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With a nine month CD, you are locked in for nine months. That's the reason why they're paying you that extra 1.85%.

I think if I had a large sum of money, then perhaps, but some people will put 200K into a savings account because they probably have 50M in other investments. That's just their cash on hand. Clearly if your entire cash worth is 200K you don't want to put it into a savings account
 
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Your money is held up for 9 months though. There are different financial products for different use cases. Why do you automatically assume you know better than other people do on what to do with their own money?

I think this is overall a good thing. I’m sure Apple inspired some people to do more with their money than what they were doing before.
 
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yg17 said:
They are going to, because the rates will follow whatever the fed does.

4.15% isn't even the highest paying savings account out there. Amazing that people will put their money into this without doing one minute of research to see there are better options.
Click to expand...

Some of us know there are places that give a slightly higher interest rate, but accounts are only insured up to $250,000. I feel more comfortable spreading my money into several accounts that allow me to access it if I need it without penalty (unlike a CD) and when the Apple Card Savings account became available I just transferred some of my regular savings account to it. I can access it if I need, and I get about as much interest as my other accounts, including my CDs.
 
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It’s not Apple. Apple is not a bank. it is an Apple-branded set of financial products entirely managed by Goldman Sachs. Regulatory restrictions don’t actually allow Apple much say in how it is run unless they wish to jump through the hurdles of chattering their own financial institution.

Agree with the comments re: If it didn’t have the Apple logo plastered on it, neither the Apple Card nor the savings account would be all that interesting. Not bad by any means. The savings account in particular is very competitive. But it’s still just a savings account. like any other.
 
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