Does Goldman Sachs Harakiri Apple Savings?
Apple and Goldman Sachs are partnering on the Apple Savings savings account, which in just a few days attracted deposits of about $1 billion. The yield guaranteed by the Californian company, however, is even higher than that of the bank. All the details
Apple Savings, Apple's savings account, attracted $990 million in deposits in the first four days of its launch a couple of weeks ago. Forbes writes it, citing two anonymous sources.
4.15 PERCENT ANNUAL RETURN
The financial service, created in collaboration with the American bank Goldman Sachs, is reserved for holders of Apple Card (the credit card created by the company: for the moment it is only available in the United States) and offers a very high annual return of 4 .15 percent.
Forbes adds that on the first day of Apple Savings alone, nearly $400 million was deposited there; approximately 240,000 accounts were open by the end of the launch week.
IS APPLE SAVINGS BETTER THAN GOLDMAN SACHS?
A curious aspect of the Apple-Goldman Sachs cooperation is that the bank's savings account offers a much lower yield than that of the Californian technology company: 3.90 percent, compared to 4.15 for Apple Savings. Apple's yield is more than ten times higher than the US average.
Furthermore, Apple's service is easy to use: the account can be opened in a short time directly from the iPhone (a smartphone model that is very popular in the United States), where it is managed and where you automatically receive the cashback ( up to 3 percent) guaranteed by Apple to its credit card users. Apple Savings is free of charge and requires no minimum deposit.
APPLE'S GOALS
As Bloomberg explained, through the account Apple aims to achieve two goals: to generate more revenue from services (today they are worth 20 percent of the company's revenue, compared to 8 percent a decade ago), and to retain users " hooked” to its ecosystem of products and features.
IS APPLE A THREAT TO SMALL BANKS?
Apple Savings may pose a threat to small and medium sized American banks (such as the notorious “ regional banks ”) which are going through a difficult period after the collapse of Silicon Valley Bank: many current account holders are withdrawing their money to deposit them or in more solid institutions (large banks, such as JPMorgan) or in funds that guarantee higher returns.
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This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/apple-savings-goldman-sachs/ on Sun, 07 May 2023 13:32:46 +0000.