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Apple is grabbing the limelight amid its first-ever store launch in India, the tech giant has also made another major announcement.
It has introduced savings account which provides more than 10 times higher interest rate than the national (U.S.) average.
Here's what you need to know!
The Big launch
Apple announced its new savings account facility last month in partnership with Goldman Sachs.
Apple’s freshly launched high-yield savings account brought in as much as $990 million in deposits over its first four days. On launch day alone, the savings account drew nearly $400 million in deposits.
Offering a High interest Rate
This high-yield savings account has been created specifically for Apple Card customers.
The interest rate offered in this account will be 4.15% APY (annual percentage yield) which is more than 10 times the national (US) average
The lucrative features
> No fee, no minimum deposits, and no minimum balance requirements
> Users can set up an account from the Wallet app on their iPhones
> All future Daily Cash earned by the user will be automatically deposited into the account
> When a user buys something with Apple Card, they gets a percentage of that purchase back in the form of Daily Cash.
Trying to tap in the banking sector
This newly launched savings account facility is not the first banking facility that Apple has announced.
Through its partnership with Goldman Sachs, Apple has been stepping into the financial services space through savings accounts, cards, and even lending, and becoming no less than a bank in itself.
Can Apple pose a threat to banks?
The national average APY on savings accounts in the US is 0.35%, as per data from the Federal Deposit Insurance Corporation. With Apple offering 4.15%, it can pose quite a competition to other banks.
Apple has several advantages over traditional banks:
> Large customer base: With over 1 billion active devices, Apple has a large pool of potential customers for its financial services offerings.
> Strong brand: Apple's strong brand makes it a more attractive option for customers than traditional banks, which often have a reputation for being slow.
> Data: Apple has a lot of data about its customers, which it can use to personalize its financial offerings. This data gives Apple a competitive advantage over traditional banks.
Apple has the full potential to disrupt the traditional banking industry.
And, it will be interesting to see how successful Apple will be in this market.
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