Apple Bank – Apple’s Savings Account
Apple is arguably the best-run company in the world, being the most valuable business with a market capitalization of $2.6 trillion. Steve Jobs laid down the groundwork, and Tim Cook has taken it and ran ever since. iPhones are the most popular smartphones in the world now, along with a variety of Apple products like MacBooks and AirPods. Apple isn’t afraid to step out of their comfort zone either, with Apple TV becoming an increasingly popular streaming service. They seem to have a golden touch with certain products, and rumors are that they might enter other industries like the automotive industry with the “Apple Car,” although that is just speculation.
What isn’t speculation is that Apple is entering an entirely new area, this one being the banking sector. On Monday, the company announced that they are launching a high-yield savings account for Apple Card users, where they can build upon their cash by placing it in the new Goldman Sachs savings account tied to the company. What makes this astounding is that the interest rate is 4.15%, which is 415 times the percentage that big banks like Chase and Bank of America offer for their basic customers and 10 times the national average. With no fees and no minimum deposits, Apple has sent a ripple through the banking sector, being one of the most mainstream names that is now offering this banking service. Although it seems as if big banks are now at a disadvantage, many point to Apple’s move as more of an effort to boost their customer loyalty by linking additional financial services. Despite this, larger banks will now have to increase their interest rates for savings accounts because current rates are no longer enticing.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.