Apple cash 4.15% savings account | General financial discussion | Discussion forum

I wouldn't want to entrust anything - cash, phone, information, whatever - to that consistently scummy and dishonest nest of abusers.
RetirEd

Apple is not a financial institution in Canada or even in the US. So, Apple cannot accept deposits or even issue credit cards.

In the US, the Apple-branded credit card and savings account are from/with Goldman Sachs Bank. Apple just inserts itself between the bank and the client to collect a cut from the bank.

That's similar to what Neo Financial does:

The Neo Money™ account is provided by Concentra Bank, a CDIC member institution, and is eligible for CDIC deposit protection. Deposits held in Neo Money™ accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor. For more information about CDIC deposit insurance, please consult CDIC's website cdic.ca

Neo credit cards issued by ATB Financial pursuant to license by Mastercard International Incorporated. Mastercard® is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

The Neo Money™ card is a prepaid Mastercard® issued by Equitable Bank pursuant to license by Mastercard International Incorporated. The Neo Money™ card is powered by the Neo Money™ account, which is provided by Concentra Bank.

Yes, Apple teamed up with Goldman Sachs. Given the strength of the brand and the added convenience of the product, banks have a lot to worry about. Including in Canada were we have little competition and consumers would benefit the most.

I think it is new because of added convenience, change in how cards are being used and love for the brand.

Some people have all their credit cards on their phones and watches (like me). And driving licences (not available in Canada yet but surely soon). Wallets are becoming thinner on the way to oblivion.

Apple is working hard to not be like a traditional bank. The idea is to have a closed loop: spend with your Apple credit card, get rewards automatically deposited into your Apple savings account and get a decent interest rate on it. The customer does nothing except swipe his phone now and then. Convenient. Uptake likely to be high. Moving money from other banks would be extra effort, so remains to be seen if it happens.

135 million Americans use Apple phones. More effluent half of the adult population. They are the target. Traditional banks have a serious competitor with a humongous amount of cash in the pockets. Canada would be a logical next step with the market crying out for a new entrant.

HermanH said

mordko said
More effluent half of the adult population.

I think you mean 'affluent'.   

135 million "effluent" Americans

Perhaps a Freudian slip???

mordko said
…
135 million Americans use Apple phones. More effluent half of the adult population. They are the target. Traditional banks have a serious competitor with a humongous amount of cash in the pockets. Canada would be a logical next step with the market crying out for a new entrant.

Apple is a nobody in the banking world.

US$48 billion cash and near cash on their balance sheet is really nothing in banking. Bank of Montreal, one of the Canadian banks, has about $200 billion of liquid assets on their balance sheet just to back up the potential next thirty days worth of withdrawals.

Apple is not a serious banking competitor because Apple has to go through a competitor! All the banks know that.

It's been over two years since Apple launched its Apple Card credit card in August 2019. Only one bank in the US has agreed to be an issuer of the card. No other financial institution in the world has signed up to be an issuer. Like many tech companies, they offer solutions that are looking for a problem.

Don't believe all that marketing from Apple. Canadian banks know from experience that's not how people actually shop for financial services. Trying to attract clients who want to pay very little or nothing for services is not a priority for the banks or any other business.