Apple Takes Aim at Banks

Apple Inc has partnered with Goldman Sachs to launch a new high-yield savings account that offers a 4.15% interest rate, more than 10 times higher than the US national average. The move is the latest sign that the technology giant is canvassing traditional banking territory as it increases its financial services footprint.

Apple’s savings account is offering interest that is currently 415 times more than the 0.01% offered by traditional banking heavyweights Chase and Bank of America. The move is likely to convince customers to move money from the big banks and into the Apple ecosystem.

Analysts are split on what it means. Some feel that the tech giant is making inevitable strides to muscle in on big banking’s turf, while others think it is just another way to enhance customer loyalty for the company’s technology products.

Users must have an Apple credit card to access the high interest savings account. Besides big banks, mobile phone competitors, like Samsung, will be fearing the move. If more customers manage their credit and banking with Apple, there is less chance of changing to an Android device.

The Apple savings account has been designed for ease of use. Featuring no fees, no minimum deposits, and no minimum balance requirements, users can create and manage their account directly in the wallet app on their iPhones. 

The Apple savings account is also insured by the Federal Deposit Insurance Corporation, meaning it is a real competitor in the savings account space.