Apple will soon allow iPhone users to place bank card rewards from Apple Card and extra funds from separate bank accounts into an interest-bearing savings account.
In a press release Thursday, Apple said the feature is anticipated to launch within the “coming months,” and the FDIC-insured account might be administered by Goldman Sachs, the bank and lender behind the Apple Card. Apple said it is not announcing an annual yield yet as rates of interest are moving rapidly.
Apple is expanding its consumer financial services offerings because it seeks to broaden the usage of iPhones with banking and straightforward payment and credit features. The corporate operates a payments network with Apple Pay and offers a bank card. It has plans to permit people to make use of iPhones as point-of-sale devices and to supply “buy now, pay later” lending later this yr.
Goldman Sachs, long referred to as a premier Wall Street investment bank, can also be bolstering its consumer business, partially through partnerships with Apple. Apple’s buy now, pay later product will use some Goldman infrastructure, but Apple said it plans to handle its own credit decisions and extend loans.
By jumping into interest-bearing accounts, Apple is capitalizing on rising rates because the Federal Reserve tries to tamp down soaring inflation. Many traditional brick-and-mortar banks have not raised rates of interest on savings accounts at the same time as rates broadly are going up. The national average rate of interest for a savings account is just 0.16%, in line with a Bankrate survey.
Zoom In IconArrows pointing outwards
Apple representatives said the savings account would offer an rate of interest that is competitive, with the very best rates available, and might be the identical for all users.
Goldman Sachs already offers savings accounts through its Marcus brand which have a 2.15% annual percentage yield.
Apple said it won’t require accounts to have minimum balances and it won’t charge fees. Users can routinely deposit the Apple Card rewards, called Each day Money, into the account.
Throughout the Wallet app, users will give you the chance to access a dashboard showing account balance and interest accrued. Apple said the feature would first begin to roll out for beta testers through a future iOS release and to all users in the approaching months.
WATCH: Goldman Sachs is approving subprime credit scores for Apple Cards