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Apple launches its own savings account to compete with banks and fintechs – what profitability they offer

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For a long time, Manzana it has started to move many of its chips towards the digital finance side. In a long-delayed deal with Goldman Sachs Group Inc, he just launched a savings account High performance for holders of your Apple Card.

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The study led by Tim Cook had already anticipated this option in October, but without going into details. It has now disclosed them and above all what conditions it will offer for its Daily Cash card.

“The savings option helps our users get even more value out of their favorite card benefit while providing an easy way to save money every day,” said Jennifer Bailey, vice president of Apple Pay and Apple Walletit’s a statement.

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The advantages of this account is that it has no additional costsit also doesn’t require a minimum deposit or maintaining a balance, and can be set up from within the Wallet app.

Apple offers a monthly return to its customers.

Apple offers a monthly return to its customers.

The idea is to generate more revenue from services, which have already increased in recent years, and provide another way for consumers to connect to Apple’s platform.

Another interesting point is that both Apple customers and anyone interested in increasing their savings can choose from several high-performance options, which are not limited to the Apple Card.

The savings account, associated with Goldman Sachs, will offer 4.15% interest. with a maximum balance of $250,000. This is an equivalent annual rate (TAE) that takes into account the effect of compound interest on your investment. The real interest will be 4.07%.

“Our goal is to create tools that help users lead healthier financial lives, and integrating Apple Card savings into Wallet allows them to spend, send and save Daily Cash directly and seamlessly, all from one place” Bailey added.

The new product will provide a more comprehensive financial services experience under the Apple umbrella for customers, who will need to use Apple hardware to receive the benefits, said Ted Rossman, senior analyst at Bankrate.

A reward on every purchase

Apple gives back an amount for every purchase you make.  Reuters photo.

Apple gives back an amount for every purchase you make. Reuters photo.

Apple Card users receive small rewards for usage. By default, 1% on all purchases and 2% if applied via Apple Pay as well. In some stores these prizes can reach 3%.

With the Apple Savings Account, customers can redirect those rewards to these accounts and accrue interest on them. The possibility of using it as a wallet is also striking, and Apple strengthens a slowly growing fintech ecosystem.

Also, not having to install another banking or neobank app is something that also makes life more convenient for the users. This move only reinforces Apple’s role as an increasingly attractive financial entity.

In order to access the Apple Card and the savings account there is an essential requirement: to be a citizen of the United States. Also, since the account is managed by the Wallet application, it is required have iOS 16.4 or later to do it.

Source: Clarin

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