A few weeks ago, I wrote about Apple having launched a new savings account product. The product was interesting for a few reasons:
- It offered a competitive 4.15% APY when it launched, which is higher than many other institutions’ accounts.
- The iPhone gives Apple a huge distribution advantage in a changing banking landscape.
- The Silicon Valley Bank (SVB) failure and First Republic Bank failure put uninsured deposits top of mind for depositors. People are moving deposits to mitigate this risk, which is shifting the banking landscape. Banks must now compete for deposits and reward savers.
- Given these facts, Apple’s announcement seems well timed. It may have decided to not let a good crisis go to waste.
I’ve been curious how successful this product would be. This week, I read a Forbes article that answered that question. According to the article, Apple’s new savings accounts saw inflows of almost $1 billion in deposits in just four days. That’s astonishing. If it’s accurate, it signals, to me, that there’s an huge amount of pent-up demand because of an unmet need. Talk about product–market fit and perfect timing. I can’t wait to see how Apple’s savings accounts do over time and what their next banking move will be.
iBank coming soon?