Technology giant, Apple, has announced partnership with financial institute Goldman Sach to create interest-yielding accounts. The bank accounts would allow iPhone Wallet users to yield interest on the funds they save.
Apple Partners With Goldman To Launch Interest-Yielding Accounts
According to the reports, Apple plans to launch unique bank accounts for iPhone Wallet application users. This account would allow users to save their rewards from Apple Card and transfer funds from/to other banks.
Furthermore, Apple stated in a broadcast on Thursday that it would launch the account insured with FDIC in a few months. It added that Goldman Sachs financial institute, which issues Apple Cards, would be in charge of the account’s administration.
The giant tech firm continued that it is yet to define the annual yield as the economic interest rates fluctuate. To expand the horizon of financial services it offers customers, Apple recently integrated iPhones with simple banking components.
Also, it partners with Apple Pay to offer payment services and issue credit cards. In addition, Apple plans to integrate point of sales (PoS) and buy now, pay-later services into iPhone devices soon.
Meanwhile, Goldman Sachs is also partially improving its financial and investment services by partnering with Apple. According to reports, Apple plans to use suitable Goldman Sachs infrastructures to facilitate its buy now, pay later protocol. However, the tech firm stated that it has sole control over decisions regarding credit and loan extensions.
Fluctuating Interest Rates Impact Apple’s Decision
According to reports, Apple’s decision to launch interest-yielding accounts was majorly influenced by the unstable interest rates. The interest rates are constantly increasing as the Federal Reserve continues to tame the raging inflation.
Notwithstanding, many traditional banks are yet to alter their interest rates on customers’ savings accounts. Statistics showed that savings accounts earn 0.16% as the average national interest rate.
In an interview, an Apple spokesman stated that their interest rate for the savings account would be competitive, suitable, and general for all customers. He added that users wouldn’t pay cost fees, and it would be a zero-balance account.
He further informed that users could save their rewards from Daily Cash (Apple Card) in the proposed savings account. The Wallet application would have a dashboard that shows funds and interest balances.
Additionally, Apple stated that beta testers would first have examined the product via a specific iOS version. Afterward, it would roll the product out on every other iPhone edition.