Nearly $1 Billion! That's How Much In Deposits Apple's New Savings Account Received In Just 4 Days

Last month saw the world's first company to reach a $3 trillion market value, i.e. Apple, open its first two retail stores in India (first in Mumbai and second in Delhi). Another key landmark that Apple reached in April was the announcement of its new savings account facility.

Apple¡¯s freshly launched high-yield savings account¡¯s eye-catching annual interest rate of 4.15% is not only nearly 10 times higher than the national average in the US (as per Apple¡¯s claims), but it is also more than what most of the major Indian banks are offering.

And as expected, the launch of a new savings account facility by the tech giant no only drew attention, but also nearly a billion dollars in deposits, and that too in just four days since launch.

Nearly $1 Billion In Deposits In Just 4 Days

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Yes, you read that right. Apple¡¯s new savings account brought in as much as $990 million in deposits over its first four days of launch, according to two sources familiar with the matter. Even on launch day alone (i.e. 17th April), the savings account drew nearly $400 million in deposits, as per Forbes.

The account¡¯s eye-catching 4.15% annual return, plus the ubiquity of iPhones, is likely the main driver for account openings, especially when the average bank in the US is paying less than half a per cent. By the end of launch week, roughly 240,000 accounts had been opened, one of the sources added.

Also Read: Explained: How Apple Is Becoming More Like A Bank

Apple Enters Competition Amid Back-To-Back Bank Failures

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With its savings account, Apple has opened itself upto fierce competition among financial institutions to attract and retain deposits following back-to-back bank failures in recent months. First Republic Bank this week become the latest financial institution to fail due to shaken confidence in the industry. The bulk of the bank¡¯s assets have been acquired by JPMorgan Chase, including $92 billion in deposits.

First Republic¡¯s stock was down 97% year-to-date after reporting on Tuesday that it lost $100 billion in deposits during last month¡¯s panic. The bank reported $104.5 billion in deposits at the end of the first quarter, down from $176.4 the previous quarter. The first quarter figure includes $30 billion in emergency funding deposited by larger banks including JPMorgan Chase and Bank of America at First Republic, as per Forbes.

Also Read: How A Lost iPhone Led To Warren Buffett Investing Billions In Apple

Goldman Sachs Taps Into Apple Card Users

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While the First Republic failed following unprecedented deposit outflows, Goldman Sachs is rapidly pulling in consumer funds by tapping Apple¡¯s 2 billion iPhone owners, the report mentioned. Apple Card users can choose to grow their Daily Cash rewards with this savings account from Goldman Sachs, with no fees, no minimum deposits, and no minimum balance requirements. As per the tech giant¡¯s press release last month, users can easily set up and manage their savings account directly from their Apple Card in Wallet.

Click here to know more about Apple's savings account.

Also Read: Why Apple & Google CEOs Fight To Hire & Retain Two IITians

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