Apple on April 17 introduced the Apple Card Savings account, and it turned out to be very popular among iPhone users. The new Apple-branded high-yield savings account saw up to $990 million in deposits within the first four days after launch, according to Forbes.
Forbes It says it spoke with two anonymous sources familiar with how the Apple Savings account was performing shortly after its launch, but the deposit total has not been officially confirmed by Apple or Goldman Sachs, Apple’s partner in the savings venture Apple Card.
During the first day alone, Apple Card owners deposited $400 million, which may not come as a surprise considering Apple’s large iPhone user base in the US. By the end of the week, nearly 240,000 accounts had been opened.
An Apple Savings Account is restricted to Apple Card holders, and allows them to directly deposit the amount of Apple Cash earned on an Apple Card into the account. Apple Card holders can also deposit additional money from a checking account into an Apple Card savings account, where they will earn interest.
Apple offers an annual rate of 4.15% right now, which is attractive when combined with the ease of opening a savings account. Creating an account takes just a few minutes for those who already have an Apple Card, and it works like any other savings account. There are no fees and no minimum balance, although accounts cannot exceed the $250,000 FDIC insurance limit.
The competitive annual interest rate and simplicity of an Apple savings account will give it an edge over competing high-yield savings account providers. Getting a higher rate for a savings account usually requires dealing with a digital bank, and many popular financial companies can’t compete with Apple in APR. Citi Bank, for example, has a rate of 3.85%, and Discover is 3.75%. American Express also offers 3.75% APR, while Capital One is at 3.50% and Barclays is at 4%.
Like the Apple Card, an Apple Savings account is managed from the Wallet app, and earnings can be tracked through a simple, informative interface.