Apple last week announced that its customers had deposited over $10 billion into the Apple Card high-yield Savings account since its launch in April. The account, powered by banking partner Goldman Sachs, is available exclusively to Apple Card users, enabling them to add to their Daily Cash rewards with an APY of 4.15% on their Savings balance.
Daily Cash rewards are also received for every purchase made on the Apple Card, and there is no limit on the amount users can earn. Apple also disclosed that since launch, 97% of Savings customers had chosen to have their Daily Cash rewards deposited directly into their Savings accounts.
Additional Savings funds can be added via a customer’s Apple Cash balance or a linked bank account.
However, as we Observed in early June, there appeared to be some teething problems with the system, as several customers reported problems withdrawing their funds from the account. This was assumed to be down to the over-zealous application of anti-money laundering measures, although disgruntled customers at the time described the whole affair as “Very un-Appley.”
Apple and Goldman Sachs have reportedly since acknowledged this lapse in expected service standards, at least privately to the customers involved. Last month some users received emails apologizing for their experiences trying to withdraw funds, noting that ‘goodwill credit’ payments of $100 would be applied to the affected accounts.
On the $10 billion Apple Savings milestone, head of Enterprise Partnerships at Goldman Sachs, Liz Martin, gave a generally positive and forward-looking statement:
“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.”
However, according to a June report by the Wall Street Journal, the company is trying to get out of its partnership, which also includes maintaining Apple Card accounts. Allegedly, the reason for this is to wind down the consumer-facing side of its business, which, Apple Card and Savings aside, has been underperforming for some time.
Goldman Sachs is reportedly trying to offload its Apple credit card and savings obligations to American Express, although claimed talks have yet to achieve any positive outcome.
With Apple Card and Savings proving to be a resounding success with the iPhone maker’s customer base, one would imagine that financial services companies would be queuing up to take on this big-name tech-industry partner. However, it may prove more difficult for Goldman Sachs to negotiate a deal which is also acceptable to Apple.
We continue to Observe.