Apple’s newly launched high yield Savings account brought in some $990 million in deposits over its first four days, Forbes reports citing “two sources familiar with the matter.”
On launch day alone, the savings account drew nearly $400 million deposits.
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 is paying less than half a percent. By the end of launch week, roughly 240,000 accounts had been opened, one source adds.
“Banks have quickly responded to the Fed’s interest rate hikes with higher mortgage and car loan rates, but savers have seen little to no increase in traditional bank deposits or savings accounts,” Richard Crone, CEO and founder of payments firm Crone Consulting, says. “There’s an outflow to CDs, money market funds, and fintechs like Apple.”
Many traditional regional banks are struggling to maintain net interest margins in the wake of the Fed’s massive interest rate hikes and as a result few have matched Apple’s 4.15% on FDIC insured savings account rate
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