Apple will soon allow iPhone users to deposit credit card rewards from Apple Card as well as money from other bank accounts into an interest-bearing savings account.
In a press release issued Thursday, Apple stated that the feature will be available in the “coming months,” and that the FDIC-insured account will be managed by Goldman Sachs, the bank and lender behind the Apple Card. Apple stated that it is not yet announcing an annual yield due to the rapid movement of interest rates.
Apple is expanding its consumer financial services offerings in order to broaden the use of iPhones through banking and simple payment and credit features.
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The company operates a payments network and provides a credit card through Apple Pay. It intends to allow iPhones to be used as POS devices and to offer “buy now, pay later” lending later this year.
Goldman Sachs, long known as a leading Wall Street investment bank, is also expanding its consumer business, in part through collaborations with Apple. Apple’s buy now, pay later product will use some Goldman infrastructure, but the company plans to handle credit decisions and loan extensions on its own.
Apple is taking advantage of rising interest rates as the Federal Reserve attempts to cool soaring inflation by moving money into interest-bearing accounts. Despite rising interest rates in general, many traditional brick-and-mortar banks have not raised interest rates on savings accounts. According to a Bankrate survey, the national average interest rate for a savings account is only 0.16%.