Apple has managed to raise a total of $10 billion for its new savings account offering since May. The iPhone manufacturer announced this week the deposit amount for the so-called Apple Card Savings Account. The product is managed by the New York financial institution Goldman Sachs (GS) and shines with high interest rates of currently 4.15 percent per year (Annual Percentage Yield, APY), even by US standards. However, there had been plenty of problems with customer support in recent weeks. Since repayments sometimes took weeks, GS recently decided to give away $100 per affected person.
Goldman actually wants out of the deal
The good mood that Apple spreads in its press statement also does not go with an internal conflict between the partners. Goldman Sachs is currently making a lot of trouble with Apple products and wants to get out of the contract. But it will run for several more years and Apple is making no move to end it – probably also because there is no alternative partner.
At the start of its savings account, which is linked to the conclusion of an Apple Card credit card agreement, Apple was able to register a billion dollars in deposits after just a few days. Accordingly, growth has actually weakened. Nevertheless, the group is very satisfied. The Apple Pay boss of the group, Jennifer Bailey, said that the group is concerned with the “financial health” of its customers. “With no fees, no minimum deposits, and no minimum balance requirements, Savings offers users an easy way to save money every day.” We are very happy about the “excellent response” from new and existing customers.
Apple Card and Savings Account in US only
However, the problem for Apple remains that, unlike the mobile payment service Apple Pay, it is only limited to the US market with the Apple Card and the savings account. Goldman Sachs probably also lured the iPhone manufacturer with the fact that it wanted to internationalize its private customer business. However, that didn’t happen. Instead, even a withdrawal seems to be planned, since the business is obviously simply not worthwhile.
Apple now has several options. The company can continue to use the contract with GS, which is limited to the USA, or switch to another partner – such as American Express – if one is found. Finally, Apple could also apply for a banking license itself so as not to be dependent on a partner. However, many observers do not believe that. Goldman Sachs is currently bearing a large part of the losses incurred by the Apple Card. The product – just like the savings account – has no fees and is very customer-friendly. GS earns money with the interest if customers don’t pay back their monthly bill immediately (which, however, only a few users in the USA do). After all, Apple apparently pays the so-called Daily Cash, a cash-back program for Apple Card users.
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