The US savings account market is in the spotlight. After the launch in mid-April of Apple Savings, the savings account of the iPhone giant, other realities in the world of US neobanks are making headway on the deposit account market. The race is to grab the new clientele who are looking favorably on these new initiatives. Apple, with its attractive 4.15% annual gross rate, immediately recorded a boom in new customers who deposited over a billion dollars (and opened 240,000 new deposits) in just the first four days of starting the new account. For now this type of offer is reserved only for the US public but the hypothesis is that it will soon be extended to other countries and in particular to Europe.
The competition does not stand by and watch. In order not to risk falling behind, the American Step has also launched itself into the world of deposit accounts. The digital bank focused on young people has recently raised the rate on its account to 5% gross per annum. To give some other examples, Current, another reality in the world of neobanks, offers 4% gross annual payment while Greenlight, the banking app for children and adolescents, pays 5%.
The news is scary. The new models have long been under the spotlight of traditional banks. In fact, the old institutions risk having to cede market shares to the new realities that are advancing at a rapid pace and that with new formulas, for example incentives to save or reward points convertible into higher interest rates in the case of the use of payment cards attract the youngest.
The new proposal from Apple certainly gave a jolt, which with its new account immediately prompted many US banks and financial institutions to raise the interest paid. At the time of Apple’s announcement, data recorded by Bankrate showed annual savings account interest rates ranging between 3.5% and 4.75%. One month after the launch of Apple’s Savings Account, the APY range has soared to between 4% and 4.85%.