Apple Attracts Nearly $1 Billion in Deposits Within a Week of High Yield Savings Account Launch

Apple’s recently launched high yield savings account has reportedly attracted around $990 million in deposits within its first four days, according to two sources familiar with the matter, first reported by Forbes. The account, which offers an eye-catching 4.15% annual return, drew nearly $400 million deposits on its launch day alone. By the end of the first week, approximately 240,000 accounts had been opened. The account is available through a partnership with Goldman Sachs Bank USA.

The impressive annual return and the widespread use of iPhones are believed to be the main drivers for the account openings, particularly when the average bank is paying less than half a percent. Apple’s savings account is entering a fierce competition among financial institutions to attract and retain deposits following a series of bank failures. First Republic Bank is the latest financial institution to fail due to shaken confidence in the industry, with the bulk of its assets being acquired by JPMorgan Chase, including $92 billion in deposits.

Goldman Sachs is rapidly attracting consumer funds by tapping into Apple’s 2 billion iPhone owners. The new savings account is only available to holders of Apple’s credit card, Apple Card. Clients can open a savings account in less than a minute directly from their iPhone, and Apple Card spend rewards, called daily cash, are automatically directed into the high yield account.

The account balance and interest earned can be tracked through a dashboard integrated with Apple’s digital wallet. Prior to the Apple savings account, daily cash rewards were automatically deposited into Apple Cash, a prepaid digital card held in the iPhone’s digital wallet and issued by Green Dot Bank. Crone Consulting estimates that $3.8 billion is annually deposited into Apple Cash from the Apple Card, funds which will now make their way into the savings account. Apple High Yield Savings accounts cannot exceed the $250,000 FDIC insurance limit.