Apple and Goldman Sachs team up to enter the market, launching a high-yield savings account with an annual interest rate of up to 4.15%

Apple announced on April 17th a high-yield savings account in partnership with investment bank Goldman Sachs, offering a 4.15% annual percentage yield with no fees, minimum deposit, or minimum balance requirements.

Goldman Sachs Issues First Consumer Credit Card Apple Card

The Apple Card is a credit card jointly issued by investment bank Goldman Sachs and Apple, and is the first consumer credit card issued by Goldman Sachs. It is in partnership with Mastercard and can be used globally. The Apple Card requires a credit check and is currently only available to eligible applicants in the United States.

In addition to the traditional installment payment feature of credit cards, the Apple Card also offers cash back of over 2% daily with no limit on the amount.

Linked to Goldman Sachs Savings Account, Offering 4.15% Annual Interest Rate

Apple announced a high-yield savings account on April 17th, linked to the Goldman Sachs savings account. There are no fees, minimum deposit requirements, or minimum balance requirements. Users can easily set up and manage their savings account directly from the Apple Card in Wallet. Once the savings account is set up, the cash back earned in the future will be automatically deposited. Users can also deposit additional funds into their savings account from their linked bank account or Apple Cash balance, with no limit on the amount.

The current savings interest rate is 4.15%, which will reference the national savings deposit product rates and rate caps published by the FDIC and is subject to change at any time.

U.S. Interest Rates Remain High, Bank Deposits Continuously Declining

Since the Federal Reserve began aggressively raising interest rates last year, the benchmark interest rate has now reached 4.75%-5%. However, most bank savings accounts still remain at 0.01%, leading to a significant loss of bank deposits. According to the latest data released by the Federal Reserve, commercial bank deposits in the United States have declined by about $900 billion from the peak of $18.1 trillion set in April last year.

These deposits have mostly been used to purchase money market funds (MMFs) and short-term U.S. Treasury bonds. While the yield on U.S. Treasury bonds with a one-month maturity has recently fallen, it still stands at 3.89%.

The savings deposit account introduced by Apple, with no amount limit and the ability to withdraw at any time, is indeed very attractive!