Consumers want Convenience:
A Thread on Apple’s Financial Products

Last week, @Apple in partnership with @GoldmanSachs announced a new high yield savings account offering a 4.15% APY interest rate for Apple Card users. Apple Savings has no fees and no minimums.

Apple Savings does have a maximum balance of $250,000 which matches the FDIC insurance limit. At this time, we are tracking 38 savings options with better interest rates and most of those pay interest on higher balances than the maximum allowed with Apple Savings.

Apple Savings can only be used with Apple Card which requires Apple Pay which requires an Apple device (iPhone, iPad, Apple Watch or Mac). Why would anyone choose Apple Savings when better options are available? Let’s dig into the numbers.

Apple Savings can only be used with Apple Card which requires Apple Pay which requires an Apple device (iPhone, iPad, Apple Watch or Mac). Why would anyone choose Apple Savings when better options are available? Let’s dig into the numbers.

In 2017, @Apple released Apple Cash as a peer-to-peer payment service like @CashApp or @Venmo. Apple Cash can be used with iMessage or Siri to send and receive money with your contacts or transfer to a bank account. Apple Cash can also be used with Apple Pay to make purchases.

In 2019, @Apple partnered with @GoldmanSachs and @Mastercard to create a credit card. Apple Card is only available in the U.S. at this time, but already has nearly 7 Million cardholders. Apple Card provides cash back on every purchase that it calls Daily Cash.

The Apple Card is not a great credit card by any measure. There is no signup bonus. No 0% APR offer. Many other cards offer better cash back including 2 that offer better cash back on Apple products! But the Apple Card and Apple Pay are very convenient for Apple users.

Now, Apple Savings will be just as convenient. Daily Cash earned from Apple Card will be automatically deposited into Apple Savings. Apple Savings will allow transfers to and from another linked bank account or Apple Cash. Apple Savings will automatically pay Apple Card.

The combination of high yield savings and cash back credit rates now offered by @Apple is less than existing products from @BreadFinancial, @CitizensBank, @PayPal, @SoFi, and @synchrony. Paypal also has products that match Apple’s other features. But no one else has 1 BILLION existing customers.

Apple’s ecosystem of financial convenience will scale with existing, loyal customers. Apple is now a bank with the highest growth potential of any U.S. bank. Apple won’t offer the best rates, but it will be the most convenient for Apple users.

https://t.co/Gn3EF1lgVU

We are losing $85 Million according to this article from @aiishamalik1. We should demand $85 Million back by switching to a savings account with at least 5.0% interest. There are at least 19 FDIC insured options right now with no balance caps.

— BankMindful (@BankMindful) August 2, 2023