Today, Apple announced that savings accounts connected to Apple Card customers have reached a collective $10 billion in deposits. That’s a lot of money, and Apple’s bank partner Goldman Sachs is seemingly proud of that milestone, but the Apple Card’s future is still uncertain according to recent reports.
The Apple Card has been available since 2019 as a credit card available to iPhone owners, with up to 3% cashback (“Daily Cash”) on purchases from Apple and a handful of other stores. Back in April, Apple launched a high-interest savings account connected to Apple Card, where cash could be deposited from other bank accounts or from the Apple Card’s cash back. Most of the excitement around the savings account was due to its annual interest rate of 4.15%, which is well above the rates offered by most traditional savings accounts. However, it’s difficult to manage the account from anything except the Wallet app on an iPhone.
The savings account has seemingly been a hit, as there is now over $10 billion in deposits across all accounts since the launch back in April. A representative from Goldman Sachs, the company running the savings account and Apple Card services (and contributed to the 2007-2008 global financial crisis), said, “We are very pleased with the success of the Savings account as we continue to deliver seamless, valuable products to Apple Card customers, with a shared focus on creating a best-in-class customer experience that helps consumers lead healthier financial lives.”
Apple’s announcement comes after months of reports that the relationship between Apple and Goldman Sachs has been strained, possibly to the point where Apple will need to find a new partner to run its financial products. Reuters reported back in June that Goldman Sachs was considering ending its partnership with Apple, and that American Express could take over Apple Card duties. The Information reported in July that Goldman Sachs was frustrated by lower profits (Apple Card doesn’t collect fees), billing payments lined up with the calendar month (most cards don’t do that), the design of the physical metal card, customer support problems, and other issues.
For the moment, Apple and Goldman Sachs are still working together, and it’s unclear what would happen to the Apple Card and connected savings account if the two companies split ways. Apple Card has to run on the Mastercard network until at least 2026, according to earlier reports. At the very least, no one has to worry about their money suddenly vanishing — all of Apple’s financial partners are insured by the FDIC.
Source: Apple
