The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Apple savings account raises stakes for deposit gathering

Apple debuted a savings account for its Apple Card users that offers a 4.15% annual rate.

The technology giant said in press release that the savings account from Goldman Sachs offers rates that it more than 10 time the national average, based on data from the Federal Deposit Insurance Corp.

Goldman Sachs, in comparison, offers a 3.9% rate through its Marcus platform.

The Apple savings account has no fees, no minimum deposits and no minimum balance requirements.

“Savings helps our users get even more value out of their favorite Apple Card benefit — Daily Cash — while providing them with an easy way to save money every day,” Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said in the release.

“Our goal is to build tools that help users lead healthier financial lives, and building Savings into Apple Card in Wallet enables them to spend, send, and save Daily Cash directly and seamlessly — all from one place,” Bailey said.

The new account comes at a time when banks and credit unions are competing more aggressively to attract and retain deposits. The news also comes a month after Silicon Valley Bank and Signature Bank where closed down after suffering large outflows of deposits.

Charles Schwab said on Monday that its deposits fell by 11%, to $326 billion, during the first quarter. State Street in Boston said its deposits declined by 3% to $210.3 billion. Deposits at M&T Bank in Buffalo, N.Y., also decreased by 3% to $159 billion.

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