Apple Inc. and Goldman Sachs Group Inc. said that their new high-yield savings account has reached US$10 billion ($13.42 billion) in US deposits, showing strength in the face of speculation that the partners may be headed for a breakup.
Since the service launched in April, 97% of users have chosen to get their Apple Daily Cash — a cash-back reward program — deposited into the account, the iPhone maker said in a statement Wednesday. The savings account is built into the Wallet app on iPhones and allows users to transfer money in and out like a traditional account, yielding 4.15% in interest.
The announcement follows a report in June that Goldman Sachs is considering exiting the Apple partnership. The Wall Street Journal said the bank was in talks with American Express Co. to take over the Apple credit card and other services that the companies offer together.
Apple also has suffered some hiccups in rolling out the savings account. Some users complained about being unable to easily withdraw cash, with delays stretching into days. Chief Executive Officer Tim Cook said in a June interview that the problem was caused by a security system designed to prevent fraud.
More broadly, Goldman Sachs has struggled to make money from consumer financial services, including the Apple Card — a credit card offering that works with the new savings account. The losses, as well as delays and engineering struggles, have fuelled speculation about the potential split.
In Wednesday’s statement, executives from both Apple and Goldman offered a brighter picture. Jennifer Bailey, Apple’s top financial products executive, said the company is “thrilled to see the excellent reception from customers both new and existing.”
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Liz Martin, head of enterprise partnerships at Goldman, said the bank continues to “deliver seamless, valuable products to Apple Card customers, with a shared focus on creating a best-in-class customer experience that helps consumers lead healthier financial lives.”
Since launching in 2019, the Apple Card has remained exclusive to users in the US.
