“Apple Card users can open the new high-yield savings account…” Apple said.
Apple Inc. and Goldman Sachs Group Inc. are teaming up to offer savings accounts to users of the technology company’s credit card. “Apple Card users can open the new high-yield savings account and have their daily money deposited automatically — with no fees, no minimum deposits and no minimum balance requirements,” Apple said in a statement Thursday. Daily cash refers to the rewards that card users generate through their purchases.
The move builds on the existing credit card partnership between the two companies. The Wall Street titan has pushed in recent years to expand its offerings to consumers, though the effort has been dogged by cost overruns and missed profitability targets. Goldman remains an important partner for Apple, even as the tech company is working to move more of its financial services offering internally.
The move is part of Apple’s bet that services — including financial offerings — will help fuel growth in the coming years. Services already contribute more than 20% of revenue, up from less than 10% in 2015. But a “buy now, pay later” Apple service announced earlier this year has taken longer than expected. to enter the market. The offering, called Apple Pay Later, was planned for iOS 16, software released last month along with new iPhones.
Apple and Goldman Sachs have also been working on an expanded Buy Now, Pay Later service for Apple Pay that can handle larger purchases with longer-term payment plans — an extension of the delayed, short-term Apple Pay Later service.
Apple’s savings account offerings allow Apple Card users to earn interest on their cash back, which comes in in 1%, 2% and 3% increments depending on whether the purchases were made through Apple Pay, on Apple products. or from selected sellers. Apple and Goldman did not disclose interest, but Marcus, Goldman’s existing savings account, currently gives users an annual percentage return of 2.15%.
The partnership could encourage users to keep the money they get back with Goldman rather than with Green Dot Bank, Apple’s existing partner for its old credit card.
Goldman was eager to increase its consumer deposits. The company’s existing savings account products already contain more than $100 billion. They are complementary to Goldman’s transaction banking, which takes corporate deposits, another source of cheap financing.