Apple and Goldman Sachs offers US savings accounts with 4.15% interest annually

Apple and Goldman Sachs want to attract US depositors into a new savings accounts by offering interest rates that are more than 10x the average national rate.

California’s tech giant and Wall Street Bank launched on Monday a new savings product that yields 4.15 percent per year. first announced this product in October.

According to the Federal Deposit Insurance Corporation, this is a rate that is far above the US average of 0.37 percent. This is also higher than competitors like American Express, who offer 3.75 percent and Goldman Sachs’ Marcus standalone savings account which offers 3.9 percent.

Launched at a time when established banks are being pressed to increase their savings rates to prevent depositors from moving money to more lucrative products like money market funds that offer higher returns with the rising interest rate.

Since March of last year, when the Fed began to raise rates after lenders maintained low deposit rates while charging higher rates for loans, customers have withdrawn approximately $800bn from US commercial banks.

Apple is offering a new savings account to its credit card users, as part of a partnership between Apple and Goldman Sachs. Apple offers no fees or minimum deposit requirements to savers. The maximum balance is $250,000 for each account. Deposits will be held by Goldman Sachs, which is a licensed institution and has FDIC insurance.

“Savings helps our users get even more value . . . While providing them with a simple way to save money each day,” said Jennifer Bailey. Apple’s Vice-President of Apple Pay & Apple Wallet.

Apple has expanded its financial services portfolio, which also includes an “buy now, pay later” programme.

Commentators claim that Apple is becoming a “bank” as it adds new financial and payment services. Christian Owens of Paddle Payments said that Apple’s strength lies in its ability to make money through hardware sales and other non-banking services.

He said: “I don’t think Apple wants be a bank.” I think Apple could eke out a bank’s economics without becoming one. They can leverage Goldman to power these financial services, be the conduit for many of these things to consumers, brand it Apple, take the high-margin cuts, and offload this sort of underlying responsibilities to Goldman.”

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