Apple and Goldman partnered high-yield savings account has attracted $990 million in deposits within just four days of its launch. On the first day alone, the account drew almost $400 million in deposits, while by the end of the launch week, approximately 240,000 accounts had been opened. 

The account’s 4.15% annual percentage yield and the widespread use of iPhones are the main drivers for account openings, particularly since the average bank pays less than half a per cent. Goldman Sachs’ Marcus high-yield savings account offers a return of 3.9%, notably lower than the Apple product.

Banks struggle to attract and retain deposits following a wave of bank failures, with First Republic Bank being the latest casualty. First Republic Bank’s stock was down 97% year-to-date after it lost $100 billion in deposits during last month’s panic, and JPMorgan Chase acquired most of its assets, including $92 billion in deposits. 

In contrast, Goldman Sachs is tapping into Apple’s 2 billion iPhone owners to pull in consumer funds rapidly. The savings account is only available to Apple Card holders, who can open it directly from their iPhone in less than one minute. Apple Card spend rewards called Daily Cash are automatically directed into the high-yield account.

Apple’s savings account has no fees, minimum deposits, or minimum balance requirements. Users can easily manage their savings account directly from Apple Card in Wallet and withdraw funds through the Savings dashboard by transferring them to a linked bank account or Apple Cash card, with no fees. 

Jennifer Bailey, Apple’s vice president of Apple Pay and Apple Wallet, said that the Savings account helps users get more value from their favourite Apple Card benefit while providing an easy way to save money daily.