Apple is making significant progress in expanding its banking offerings. Today, the business announced that it would be teaming with Goldman Sachs to introduce a new Savings account option for Apple Card credit cardholders.
This tool will allow Apple Cardholders to save and increase their “Daily Cash,” or cashback benefits, earned from Apple Card transactions.
Apple said cardholders could set up automatic savings into a new high-yield Savings account with Apple Wallet and Goldman Sachs in the coming months.
Customers will also be able to deposit funds into this account anytime. Apple states that the account will not have fees, minimum deposits, or minimum balance requirements.
It would make the account somewhat competitive with various neobanks, which are frequently used as a way for customers to park their digital cash and earn money through interest payments. No charges will be incurred when you move money from your Apple Pay balance to a linked bank account or an Apple Cash card.
“Savings enables Apple Card users to grow their Daily Cash rewards over time while also saving for the future,” Apple’s vice president of Apple Pay and Apple Wallet, Jennifer Bailey, said in a statement. (Source – FoxBusiness)
Any purchase made with Apple Pay is eligible for 2% Daily Cash from Apple Card, and purchases made with Apple Pay at select retailers are eligible for 3% Daily Cash from Apple Card.
These select retailers include Apple, Uber, Uber Eats, Walgreens, Nike, Panera Bread, T-Mobile, ExxonMobil, and Ace Hardware.
Users of the Apple Card who choose to use the savings account option will be able to automatically earn interest on their Daily Cash, which will cause the amount to increase over time.
Jennifer Bailey, the head of Apple Pay, explained that the feature “Savings enables Apple Card customers to expand their Daily Cash rewards over time while also saving for the future.”
“Savings delivers even more value to users’ favorite Apple Card benefit — Daily Cash — while offering another easy-to-use tool designed to help users lead wholesome financial lives,” says Apple. “Savings helps users lead healthier financial lives by assisting them in managing their money more effectively.” ( Source – FoxBusiness)
It was launched in 2019 and is only available in the United States. The Apple credit card can be controlled through the Wallet app on the iPhone; however, a physical form of the card is also available for usage at establishments that do not support contactless payments.
When using an actual Apple Card to make purchases, the amount of Daily Cash you can earn is capped at 1%.
Besides the delayed, limited Apple Pay Later service, Apple and Goldman Sachs have been developing a more powerful buy now, pay later option for Apple Pay that can accommodate higher purchase quantities with longer-term payment plans.
Apple’s current partner for its heritage credit card is Green Dot Bank, but with this new agreement, users may be more likely to keep their cash refunds with Goldman.
It has been a priority for Goldman to boost its customer deposits. More than $100 billion is currently in the company’s various savings packages. They supplement Goldman’s transaction banking operations, which accept corporate deposits as a low-cost funding option.