Apple Savings saw nearly $1 billion of deposits in first four days

AppleInsider

The first week of Apple Savings proved Apple's ecosystem strength with a mass of new accounts and nearly $1 billion in deposits.

Apple Savings has a 4.15% APY

Apple Savings is a high-yield savings account run by Goldman Sachs, with the front end owned by Apple. It is tied to the Apple Card and, thus, a US-only feature.

According to a report from Forbes, Apple Savings had a great first week. Anonymous sources indicate that around 240,000 accounts were created in that first week, amassing $990 million in deposits in the first four days.

"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."

Apple Savings isn't the best high-yield savings account out there, nor does it offer the highest APY. However, it might just be the most convenient -- at least for existing Apple Card holders.

That 4.15% APY combined with the simplicity of sign-up are likely influences for the large initial adoption rate. The savings account has been available for two weeks now, but adoption numbers have not been made public.

Apple is a very secretive company, so it is impossible to determine exactly how many users are able to adopt Apple Savings. Out of the 2 billion active Apple products used in the world, only a fraction of that resides in the United States -- with many people owning multiple products.

Still, 240,000 new accounts would represent strong initial interest from the United States Apple user base. Each of those accounts belongs to a single adult over 18 with an Apple Card.

A mind-boggling number can be derived from that $990 million in deposits. With just the money deposited in the first four days, we know at 4.15% APY that customers will be paid $41 million in interest over the next year.

Well, this writer got six cents of that on May 1 for some perspective on the incredible numbers we're dealing with here. Apple Savings and Apple Card are US only, so it may be some time yet before Apple's global user base get to collect their pennies in savings too.

Read on AppleInsider

gourmet_poems

“ With just the money deposited in the first four days, we know at 4.15% interest that customers have already been paid at least $41 million in interest.”

Ummm, that 4.15% APY is annual.  There’s no way that $41M in interest could already be paid over a few weeks.

Wesley Hilliard

gourmet_poems said:

“ With just the money deposited in the first four days, we know at 4.15% interest that customers have already been paid at least $41 million in interest.”

Ummm, that 4.15% APY is annual.  There’s no way that $41M in interest could already be paid over a few weeks.

Ha, good point. 

michaelx74

...paid at the end of the month.

Wesley Hilliard

michaelx74 said:

...paid at the end of the month.

Right, but it is 4.15% APY, which means if you leave $100 in your account for a year, that $100 will earn $4.15 a year. The interest is compounded daily and paid out at the end of each month. It's complicated to explain because the balance is constantly increasing with Daily Cash, personal deposits, and monthly interest.

Anilu_777

And we in Canada wait and wait…

lam92103

Anilu_777 said:

And we in Canada wait and wait…

In Canada, Tangerine is currently at 5%

ilarynx

gourmet_poems said:

“ With just the money deposited in the first four days, we know at 4.15% interest that customers have already been paid at least $41 million in interest.”

Ummm, that 4.15% APY is annual.  There’s no way that $41M in interest could already be paid over a few weeks.

Ummmmmm. I received my notice of interest paid in my Apple Wallet this morning. It IS getting paid. Promptly. 

Doubting Apple has usually been a losing gamble. 

https://www.vox.com/2017/1/9/14215942/iphone-steve-jobs-apple-ballmer-nokia-anniversary

rob53

The way I look at it is this. Using my Apple Card I get between 1% and 3% off all purchases. This amount goes directly into Apple Savings, currently receiving 4% interest. This is "free" money because normally I would have had to pay the full amount on purchases. (Yes, many credit cards do the same thing as Apple Card but I'm still saving money on purchases.) Right now the Market sucks big time. My IRA has some money in a CD, also at 4%, but the Market is so volatile I'd rather take this income than worrying about losing 25% of my IRA, which happened recently. The best part is I don't have to do anything other than sign up, everything else is automatic, which is not something other programs (probably) have.

Stabitha_Christie

ilarynx said:

gourmet_poems said:

“ With just the money deposited in the first four days, we know at 4.15% interest that customers have already been paid at least $41 million in interest.”

Ummm, that 4.15% APY is annual.  There’s no way that $41M in interest could already be paid over a few weeks.

Ummmmmm. I received my notice of interest paid in my Apple Wallet this morning. It IS getting paid. Promptly. 

Doubting Apple has usually been a losing gamble. 

https://www.vox.com/2017/1/9/14215942/iphone-steve-jobs-apple-ballmer-nokia-anniversary

Yikes. gourmet_poems didn't say no interest, they said the 4.15% APY is annually and the 41 million won't have accrued in a few weeks at a 4.15% yield. They are correct.

You got paid interest at the end of the month but not 4.15%

gourmet_poems didn't doubt Apple, they are financially literate.  

urahara

Wesley Hilliard said:

michaelx74 said:

...paid at the end of the month.

Right, but it is 4.15% APY, which means if you leave $100 in your account for a year, that $100 will earn $4.15 a year. The interest is compounded daily and paid out at the end of each month. It's complicated to explain because the balance is constantly increasing with Daily Cash, personal deposits, and monthly interest.

No it is not complicated. People just need to know how the interest works. And how numbers work lol.

urahara

Thank you for the explanation. 
I hope that some one who didn’t understand those things might learn something… But common, such basic knowledge: not knowing it is like a conviction that the earth is flat. (Disappointed in humanity)

jamnap

So today Apple paid me $36.83 for funds in my new account April 17-30.  The Apy is better then AENB, Capital One and Marcus GS.  The Wallet App makes it simple and easy but I do not want to walk around with my Apple Savings info on my phone.  Wish I could block it and only access it via card.apple.com

chutzpah

gourmet_poems said:

“ With just the money deposited in the first four days, we know at 4.15% interest that customers have already been paid at least $41 million in interest.”

Ummm, that 4.15% APY is annual.  There’s no way that $41M in interest could already be paid over a few weeks.

Wow, someone really goofed there.

ilarynx

Stabitha_Christie said:

ilarynx said:

gourmet_poems said:

“ With just the money deposited in the first four days, we know at 4.15% interest that customers have already been paid at least $41 million in interest.”

Ummm, that 4.15% APY is annual.  There’s no way that $41M in interest could already be paid over a few weeks.

Ummmmmm. I received my notice of interest paid in my Apple Wallet this morning. It IS getting paid. Promptly. 

Doubting Apple has usually been a losing gamble. 

https://www.vox.com/2017/1/9/14215942/iphone-steve-jobs-apple-ballmer-nokia-anniversary

Yikes. gourmet_poems didn't say no interest, they said the 4.15% APY is annually and the 41 million won't have accrued in a few weeks at a 4.15% yield. They are correct.

You got paid interest at the end of the month but not 4.15%

gourmet_poems didn't doubt Apple, they are financially literate.  

Yes. I misread the initial post. I was focused on the "interest not getting paid" and not the 41m. gourmet_poems's accurate math vs my haphazard misreading. Thanks for the correction/s.