Apple Card Savings Account Interest Rate Soars To 4.25% - What's The Catch?
Portfolio Pulse from Benzinga Neuro
Apple Inc. (AAPL) has increased the interest rate for its Apple Card Savings Account to 4.25% APY, surpassing the industry average but still below some high-yield savings accounts like Goldman Sachs's Marcus account at 4.50% APY. The rate hike follows Apple's decision to end its financial services partnership with Goldman Sachs Group Inc. (GS), amid reports of seeking a new partner for Apple Card operations, potentially with Brazilian fintech Pismo.
December 21, 2023 | 12:54 pm
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NEGATIVE IMPACT
Goldman Sachs's Marcus savings account still offers a higher APY than Apple's new rate. The end of the partnership with Apple could lead to a minor negative impact on Goldman Sachs's branding as a partner for tech companies.
Goldman Sachs may experience a minor negative impact due to the loss of the partnership with Apple, which could affect its image as a preferred partner for tech companies. However, their Marcus account still offers a competitive rate, which may mitigate the impact.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Apple's increase of its Apple Card Savings Account interest rate to 4.25% APY may attract more customers to use the service, potentially boosting user engagement and financial services revenue.
The higher interest rate is likely to be seen as a positive move for customers, which could lead to increased usage of Apple's financial services. This could have a positive impact on Apple's revenue from this segment, although it's a small part of their overall business.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80