Apple's new saving account rakes in $990 in just four days
Per Forbes
Apple landed close to a billion with its new savings account that promised high-yield savings to those who deposited their funds. Its launch day accounted for close to half as it drew deposits of nearly $400 million.
To be specific, the company saw $990 million in deposits over the first four days alone. This was because of the high yield that the company promised, especially during a time shortly after the collapse of several regional banks.
The account would offer depositors a 4.15% annual return, much higher than the typical bank's half percentage. A source familiar with the matter shared that within the first week alone, the company was able to see 240,000 new accounts opened.
Crone Consulting CEO and founder of payments, Richard Crone, gave a statement regarding the situation of banks. It was also mentioned how other entities aside from banks benefited.
Crone: “Banks have quickly responded to the Fed's interest rate hikes with higher mortgage and car loan rates, but savers have seen little to no increase in traditional bank deposits or savings accounts... There's an outflow to CDs, money market funds, and fintechs like Apple.”
In mid-March, it was reported that the median bank account balance in the US sat at just $5,300. On average, it was noted that US households were able to save $41,600 in 2019.
Americans that were 75 and older had a median balance of $9,300 in 2019, with a mean balance totalling $60,410.
Toward the end of February, it was reported that in order to cover an emergency expense of $1,000, 25% of people would have to run into credit card debt. This was an all-time high since 2014. This survey consisted of a thousand participants in the US since 2014, almost ten years ago.
See flow at unusualwhales.com/flow.
Other News:
- Median bank account balance in the US is $5,300
- To cover a $1,000 emergency expense, 25% of people would run into credit card debt, an all-time-high since 2014
Resources: