Apple’s newly launched high-yield savings account has reportedly attracted around $1 billion in deposits within its first week.
The Apple Card savings account, launched in April in partnership with Goldman Sachs, offers US consumers a high-yield annual return of 4.15% a rate it claims is more than 10 times the national average.
Users can set up and manage their savings account directly from the Apple Card app with no fees, no minimum deposits, and no minimum balance requirements.
According to Forbes, the savings account attracted $400 million in deposits on launch day alone, with approximately 240,000 accounts being opened by the end of the first week.
However, competition in the space is heating up, with Robinhood increasing the rate of its savings account for Robinhood Gold customers to 4.65% APY this week, following the Fed announcing further interest rate hikes.
The entry of big tech firms into financial services coincides with a number of US bank collapses, with the fall of Silicon Valley Bank and Signature Bank in March and, most recently, First Republic Bank, which was taken over by JP Morgan Chase this week.