Apple partners with Goldman Sachs to offer savings accounts

Bloomberg

Apple Inc. and Goldman Sachs Group Inc. will team up to offer savings accounts to users of the tech company’s credit card.
“Apple Card users will be able to open the new high-yield savings account and have their daily cash automatically deposited into it — with no fees, no minimum deposits and no minimum balance requirements,” Apple said. Daily cash refers to the rewards that card users generate through their purchases.
The move is part of Apple’s bet that services — including financial offerings — will help fuel growth in coming years. Already, services contribute more than 20% of revenue, up from less than 10% in 2015. But an Apple “buy now, pay later” service, announced earlier this year, has taken longer than expected to reach the market. The offering, called Apple Pay Later, had been slated for iOS 16, software released last month in tandem with new iPhones.
Apple and Goldman Sachs have also been working on a more extensive buy now, pay later service for Apple Pay that could handle larger purchase amounts with longer-term payment plans — an expansion over the delayed, short-term Apple Pay Later service.
Apple’s savings-account offering will allow Apple Card users to generate interest on their cash back, which arrives in 1%, 2% and 3% increments depending on whether the purchases were made via Apple Pay, on Apple products or with select merchants. Apple and Goldman didn’t announce an interest rate, but Marcus, Goldman’s existing savings account, currently gives users an annual percentage yield of 2.15%.
The partnership could encourage users to store the cash they get back with Goldman rather than Green Dot Bank, Apple’s existing partner for its legacy credit card.
Goldman has been eager to increase its consumer deposits. The firm’s existing savings-account products already hold more than $100 billion. They are complementary to Goldman’s transaction-banking business, which takes in corporate deposits, another source of cheap funding.