The news: Apple Card’s Savings account surpassed $10 billion in deposits from users since its launch in April, per a press release.
- Apple Savings is only available to Apple Card users. It lets cardholders deposit their Daily Cash rewards, with a high APY of 4.15%.
- Almost all Savings customers (97%) automatically deposit their Daily Cash into their accounts.
Why this matters: The popularity of Apple Savings can help drive Apple Card adoption.
- Apple Savings brings investment-like returns with significantly less risk. And investing rewards is an in-demand credit card feature: 20% of respondents said depositing rewards into an investment account was an “extremely valuable” feature, per our US Cash Back Credit Card Emerging Features Benchmark.
- And Gen Z in particular cares about better interest rates: More adult Gen Z mobile banking users cited rates on financial products as a top factor when choosing a new bank than overall mobile banking users, per our September 2022 benchmark survey.
- Apple Savings’ annual interest on balances is some 10 times higher than the national average for savings accounts, per the Federal Deposit Insurance Corporation (FDIC).
The bigger picture: Despite the success of the Apple Card, it is likely switching hands. Goldman Sachs is reportedly trying to get out of its atypical card partnership with Apple as it transitions away from consumer banking.