On Wednesday, August 2, amidst widespread speculation of a possible split between Apple Inc. and Goldman Sachs, both companies revealed their jointly launched high-yield savings account had already reached a deposit balance of $10 billion in the U.S. This impressive milestone indicates their substantial strength in an American banking sector still recovering from turbulence.
In a joint statement issued by both parties on Wednesday, they reported that since the service's debut in April of this year, 97% of Apple Card users have chosen to deposit money from the Apple Daily Cash cashback rewards program into this high-yield savings account supported by Goldman Sachs. This savings account, integrated into the Wallet app on the iPhone, allows users to transfer funds in and out like a traditional account, offering an annual interest rate of up to 4.15%. This rate is approximately ten times what U.S. banks typically offer for demand savings interest and higher than Goldman Sachs' own high-yield accounts.
In June of this year, reports surfaced that Goldman Sachs was considering pulling out of its partnership with Apple. Media outlets suggested that Goldman Sachs was negotiating with American Express to take over this financial service.
However, this savings account, which is bundled on Apple's iPhone, has also caused some hitches for Apple. Some users complained about the difficulty in withdrawing cash instantly, with delays lasting several days. Apple's CEO, Cook, stated that this problem was caused by security systems designed to prevent fraud.
Over the past few years, Goldman Sachs has been working to transition from a Wall Street investment bank primarily serving institutional investors into a more comprehensive financial institution covering consumer financial services. This endeavor includes its collaboration with Apple in this field. The two companies launched the Apple Card, a virtual credit card product only available in the U.S., as early as 2019.
Despite ongoing market speculation about the potential "breakup" between the two, the Wednesday statement painted a brighter future. Jennifer Bailey, Senior Director of Apple's Financial Product Business, expressed her delight at the warm reception of the product by new and old customers. Liz Martin, Goldman Sachs' Corporate Cooperation Director, assured that the bank would continue to offer seamless, valuable products for Apple Card customers, working together to create top-notch customer experiences and help consumers lead healthier financial lives.
The Daily Cash feature of the Apple Card gives users cash back of 2% in some consumption scenarios and 3% for Apple store purchases. Apple has even launched a 5% Daily Cash cashback during promotional events.
Apple Card customers can use this high-yield savings feature to automatically deposit their Daily Cash rewards into this high-yield savings account. Unlike traditional banks, this savings account has no fees, minimum deposits, or minimum balance requirements.
In addition to the cashback earned through Daily Cash, users can also deposit additional funds into their savings account through linked bank accounts or their Apple Cash balance. Users can access their "Savings Dashboard" in the Wallet, where they can see their account balance and interest, withdraw funds at any time, and transfer funds to a linked bank account or Apple Cash without incurring any fees.
