Apple and Goldman Sachs have announced the introduction of a novel high-yield savings account with an interest rate of 4.15%, which is more than 10 times higher than the nationwide average. This move is part of Apple’s efforts to augment its financial services offerings and contend with prominent banks in the congested banking sector. The interest payout on the Apple savings account is substantially higher than the 0.01% Chase and Bank of America offer for their fundamental savings patrons, which could entice customers to migrate to Apple’s ecosystem. The savings account can be managed through Apple products, and customers must possess Apple’s credit card, dubbed the Apple Card, to be eligible for it. This engenders a loyalty play for Apple, as users are incentivized to remain with Apple’s products to maintain access to their savings accounts. It additionally confers upon Apple greater insight into its customers’ financial data, providing a helpful advantage for the company.

The Apple savings account is highly user-friendly and is bereft of any fees, minimum deposits, or minimum balance requirements. Users can set up and manage their accounts directly in the wallet app on their iPhones. The savings account is insured by the Federal Deposit Insurance Corporation. Although Apple’s savings account does not possess the highest interest rate available, the fact that Apple is involved makes it noteworthy and may induce some change in the industry. Furthermore, Apple has recently entered the “buy now, pay later” industry with its Apple Pay Later program, which allows customers to pay for their purchases in four installments over six weeks and manage their payments through the Apple Wallet app.