After revolutionising the telecommunications sector, global tech giant Apple has a new target — the global fintech sector.
Its latest offering, a savings account, has already taken the finance world by storm. Within four days of its launch on April 17, the service accumulated a staggering $1 billion in deposits, as per media reports.
Currently, the account is only available to Apple Card holders in the United States. But they seem to be taking full advantage of the high-return savings account. The Apple savings account will offer an interest rate of 4.15 percent, which is ten times the national average interest rate in the US.
But the blockbuster launch is likely to boost Apple’s new venture. As per reports, 240,000 high-yield savings accounts were opened in the first four days of launch. This represents just 0.002 percent of total US iPhone users, indicating future scope for expansion.
The Apple savings account has come at a time when the US is facing a banking crisis, with three major banks — First Republic Bank, Signature Bank and Silicon Valley Bank — failing since March this year.
In fact, Apple’s latest venture is only adding to the woes of established banking and finance companies. Regional and small banks are now trying to compete by offering higher rates and cash bonuses for new accounts. Yet, it remains to be seen whether these will be enough to keep up with the financial disruption caused by Apple’s new service.
Some features of Apple savings account
The Apple savings account offers a number of benefits to customers. The account has no fees or minimum deposit requirements which means users can easily set up and manage their savings account in less than a minute directly from the Apple Card. Additionally, it is FDIC-insured up to $250,000, which means that customers’ deposits are protected in the event that Goldman Sachs goes bankrupt.
Another benefit is the convenience factor. Customers can easily transfer money in and out of their savings account using their Apple devices, and they can track their account balances and transactions in real time. The savings account is also integrated with the Apple Wallet app, which allows customers to easily monitor their spending and savings goals.
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