The iPhone maker offers a savings account in the US with 4.15 percent annual interest. There are no fees, and there are no minimum deposits or balances required. The offer could increase the pressure on other players in the financial sector.
Apple is partnering with Wall Street bank Goldman Sachs Group to launch a long-awaited high-yield savings account in the US. The iPhone manufacturer lures with attractive interest rates and the user-friendliness of its app.
Apple Card users are offered annual interest rates of 4.15 percent on the account, more than 10 times the national average. There are no fees, and there are no minimum deposits or balances required. Everything can be set up in the wallet app. However, the program is only available in the US and the credit is limited to $250,000.
Smaller US banks under pressure
Apple’s offer could increase the pressure on other players in the financial sector. Small and mid-sized US banks have suffered deposit outflows this year following the collapse of Silicon Valley Bank. Many savers now prefer big banks like JP Morgan Chase and Co. as safe havens for their money. The head of fund giant Blackrock warned on Friday that given the momentum, cash is likely to continue to flow out of traditional bank accounts. “More and more deposits are flowing into ETFs, cash and money market funds,” says Larry Fink. Blackrock is benefiting from the trend.
Apple had already announced the new financial offer in October. The management wants to further increase the income from the service segment and also bind customers more closely to the Apple platform. Last year, the group generated almost 20 percent of its sales with services, ten years earlier it was only about eight percent.
Apple is often accused of being too dependent on its iPhone. The share of iPhone sales in sales has recently been declining, but critics believe that Apple’s range of services is only intended to promote the use of Apple devices.
Largest corporation in the world
That doesn’t seem to bother investors much: Apple shares have risen by a good fifth since the beginning of the year. With a price of $165, the paper is still just below its record high of $180 in early 2022. With a market value of $2.61 trillion, Apple is still by far the largest publicly traded company in the world. (Bloomberg/bl)