Apple becomes more and more like one Bank. After the "Buy now, pay later" ("Buy now, pay later") and Pos Apple takes another step in financial services with the paid deposit account. In a Press release, the Cupertino company said that the feature should be launched in the "coming months" and that the FDIC insured account will be administered by Goldman Sachs, the bank and lender behind the Apple Card. Apple also explained that it is not yet announcing an annual return "because interest rates are moving rapidly," but the "savings account will be high-yield."
Thus Apple capitalizes on the increase in interest rates, while the Fed tries to contain the surge in inflation by raising the cost of money. Many traditional banks have not raised interest rates on deposit accounts, even though the cost of borrowing in general is going up. According to a Bankrate survey, the national average interest rate for a savings account is just 0,16%.
Remunerated deposit account: what is it?
The deposit account is a banking contract limited to being just a remunerated deposit with a short-term investment function. A sort of piggy bank, where you put money and leave it for a certain period. In return, the bank will reward the customer by paying interest. It is one of the simplest products to invest with and also among the safest as it is not exposed to market trends, which are extremely volatile at the moment.
The high-yield deposit account of Apple and Goldman Sachs
Apple will soon allow its users to deposit credit card rewards Apple Card, Called Daily Cash, and other funds from separate bank accounts into a savings account with no fees, no minimum deposits, and no minimum balance requirements. Then they will be able to withdraw funds at any time without charges. The account, which is accessed mainly through theiPhone Wallet appwill accrue interest.
Within the Wallet app, users will be able to access a dashboard displaying the account balance and accrued interest. Apple said the feature will begin rolling out to beta testers through a future iOS release and to all users in the coming months for the first time.
Apple Card users currently receive 3% daily cash on Apple Pay purchases at Apple and select merchants, but the company did not disclose what the interest rate on the high-yield savings account will be. But Apple representatives said the savings account “will offer a competitive interest rate, with le best rates available and it will be the same for all users”.
Apple's banking ambitions: from credit cards to installment loans
The move is one of the clearest signs of Apple's growing ambitions in the financial sector, as it seeks to bring services directly into its digital portfolio. The company already operates a payments network with Apple Pay and offers one credit card. It plans to allow people to use iPhones as point-of-sale devices and offer “Buy Now, Pay Later” loans later this year, and will use some Goldman Sachs infrastructure for the deal. But it will be but Apple "to manage its credit decisions and extend loans," as the company itself explains.
