One billion dollars in “Apple Card” deposits in 4 days, with an interest of 4.15%

Last April, the technology giant launched a new savings account available to those who hold an Apple Card credit card, in partnership with Goldman Sachs. The account enjoys an industry-standard interest rate of 4.15%, allows users to switch seamlessly between a savings account and a credit card while using their iPhone, and is subject to no fees and no minimum balance requirement.
Apple Card and the new savings account join the company’s other financial product, Apple Pay, which has grown at a somewhat slow pace but found a foothold during the pandemic, as consumers embraced (contactless) payments as more companies moved to accept the payment option.

Apple said variable interest rates for the Apple Card range from 15.74% to 26.74% based on creditworthiness. This is broadly in line with the average credit card interest rate, which now stands at 23.84%, the highest level since rates were tracked monthly in 2019.

And while banking sector analysts indicated that the Apple savings account may be good news, others pointed out that the new service is bad for traditional banks and for some (older) consumers, warning of the dangers of joining it.
In this regard, Jesse Whitsett, financial advisor at Morgan Stanley, said that savings accounts in “Apple Card” will most likely attract younger groups, that is, people who already use iPhones to pay and are familiar with and fully comfortable in conducting their banking transactions via their smartphones.
While experts said that one of the other downsides is that the symbiotic relationship between the “Apple Card” and the savings account may lead people to take on more debt. So extravagant spenders should think a lot before getting involved.