Apple partners with Goldman Sachs to offer savings account to card users

Tech giant Apple on Thursday (October 13) announced that it is partnering with Goldman Sachs, an investment banking company, to offer savings account to Apple credit card holders.

Apple in a statement on Thursday (October 13) said: “Apple Card users will be able to open the new high-yield savings account and have their daily cash automatically deposited into it with no fees, no minimum deposits and no minimum balance requirements.”

Daily cash refers to the rewards generated by card users through their purchases.

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The savings account scheme builds on the existing credit-card partnership between Apple and Goldman Sachs. For Apple, Goldman remains a key partner even as the tech company works to shift more of its financial-services offerings in-house.

The savings account offering will allow the Apple Card users to generate interest on their cash back, which arrives in one, two or three per cent increments depending on whether the purchases were made via Apple Pay, on Apple products or with select merchants.

The two companies did not announce the interest rate on savings. Marcus, Goldman’s existing savings account, currently gives users an annual percentage yield of 2.15 per cent.

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The partnership between Apple and Goldman can encourage users to store their cash with Goldman rather than Green Dot Bank, Apple’s existing partner for its legacy credit card.