Apple said users of its Apple Card can earn 4.15 percent on
savings accounts, or 10 times higher than the national average, citing March
data from the Federal Deposit Insurance Corporation that showed consumers
earned an average of 0.37 percent on savings in bank accounts.
Regional and small banks are competing for deposits by
dangling promotions, including higher rates and cash bonuses for opening new
accounts.
The moves come after rattled consumers moved billions of
dollars to banking giants from smaller lenders in March following the failures
of Silicon Valley Bank and Signature Bank.
The Apple rate is higher than the 3.9 percent Goldman offers
for an online savings account at its digital consumer bank, Marcus.
Last month, Apple launched its "buy now, pay later"
(BNPL) service in the US, threatening to disrupt the fintech sector dominated
by firms like Affirm Holdings and Swedish payments company Klarna
The service, Apple Pay Later, will allow users to split
purchases into four payments spread over six weeks with no interest or fees,
the company said. It will initially be offered to select users, with plans of a
full roll-out in the coming months.
Users can get loans between $50 and $1,000 for online and
in-app purchases made on iPhones and iPads with merchants that accept Apple
Pay, according to the company.
More than 85 percent of US retailers accept Apple Pay, the
company said. © Reuters