Apple’s launch of a high-yield savings account threatens rivals 

Apple has partnered with Goldman Sachs to launch a new savings account which is now available for U.S. Apple Card users and offers a high-yield Annual Percentage Yield of 4.15 percent – 10 times above the national average.[1] There are no fees or minimum deposit or balance requirements. This looks to put increasing pressure on more established banks, particularly regional and smaller lenders.

Apple’s savings account is integrated in the iPhone Wallet which exclusively benefits (via Apple Pay) from RFID chips when presented at a checkout card reader. Apple is trying to lure its customers to change their savings account to raise barriers for its rivals. By deepening its offering of financial services products, it will have the obvious effect of expanding Apple’s impact on retail financial services and further locking consumers into the Apple ecosystem.

The FCA is currently investigating the competition impacts of the Big Tech platforms in retail financial services.[2] MOW will be raising this issue with the FCA. 

[1] See https://www.apple.com/newsroom/2023/04/apple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy/.

[2] See https://www.fca.org.uk/publications/discussion-papers/dp22-5-potential-competition-impacts-big-tech-entry-and-expansion-retail-financial-services.