Apple Inc. and Goldman Sachs Group Inc. have jointly announced a resounding success for their new high-yield savings account, which has garnered an impressive $10 billion in US deposits since its launch in April.
The achievement is a testament to the strength of their partnership amid concerns that the two corporate giants might part ways.
Apple’s foray into the financial sector has been marked by the integration of a cash-back reward program known as Apple Daily Cash, wherein an overwhelming 97% of users opt to have their rewards deposited into the high-yield savings account as disclosed by the tech giant in a statement released on Wednesday.
This unique offering is built into the Wallet app on iPhones, providing users with the convenience of a traditional savings account while offering an attractive interest rate of 4.15%.
Despite its success, the savings account’s rollout was not without its challenges. Several users reported difficulties in withdrawing cash promptly with some experiencing delays that stretched into days.
In response to these concerns, Apple’s CEO, Tim Cook, acknowledged in a June interview that the delays were caused by a security system designed to combat fraud. The company has since been working diligently to address these issues and ensure a smoother user experience.
Moreover, Goldman Sachs has faced its own set of hurdles in the realm of consumer financial services, particularly in its partnership with Apple for the Apple Card—a credit card that seamlessly integrates with the new savings account.
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Losses incurred and engineering struggles have given rise to speculation about the future of the collaboration, which was further fueled by reports that Goldman Sachs was exploring talks with American Express Co. to potentially take over the Apple credit card and other joint services.
In the face of these challenges, executives from both Apple and Goldman Sachs have sought to reassure stakeholders and customers alike.
Jennifer Bailey, Apple’s top financial products executive, expressed elation at the enthusiastic reception of the new savings account among both new and existing customers. Likewise, Liz Martin, head of enterprise partnerships at Goldman Sachs, reiterated the bank’s commitment to delivering valuable products to Apple Card customers and creating an exceptional customer experience that promotes financial well-being.
The impressive $10 billion milestone in deposits serves as a vindication of the partnership between Apple and Goldman Sachs, despite the hurdles faced along the way.
The success of the high-yield savings account highlights the appeal of the offering to customers, positioning it as a robust financial solution in an ever-evolving digital landscape.
