Apple is showing the bank its teeth. As a result of its alliance with Goldman Sachs, one of Wall Street’s giants, it announced on Monday the opening of an account with a 4.15% rebate, well above that offered by companies in the market. The tech giant wants to become strong in financial services by leveraging its customer base. The new account has specifics, some of which are in the fine print of the agreement signed with Goldman Sachs Bank USA, Salt Lake City Branch. “We do not accept cash deposits,” says one of the clauses.
The account has no commissions or requires a minimum balance and can be opened using the electronic wallet built into the mobile phone. Apple announced the alliance with Goldman Sachs to launch the account last October, but it has taken half a year for the project to become a reality. Despite being a large bank, Goldman has a smaller commercial banking presence than other large companies that the new account poses a threat to.
The account is currently only available in the US. The legal conditions of the same indicate that it is only offered to natural persons. “An account may only be used for personal, family, or household purposes and may not be opened or maintained for any business purpose,” the fine print reads.
Apple ensures that this 4.15% annual return is 10 times the market average. The tech company restricts account opening to individuals and sets a maximum balance of $250,000 in its detailed terms: “We may refuse and return any money transfer if your account exceeds the maximum deposit limit. You authorize us to return funds in excess of the maximum balance limit per check,” the contract reads.
The opening of the account is subject to identity verification with social security number or tax identification number, since Apple and Goldman have to inform the authorities about the returns. The primary account can only be accessed through Apple Wallet, the electronic wallet for Apple devices. Without this application, the functions and services of the account are limited, but the user could get the money back by check and request statements and information over the phone.
Seven days to withdraw funds
The terms stipulate that there can only be one holder per account, who can designate up to six other beneficiaries to whom the money will be sent in the event of death. The interest is rounded to the nearest cent, compounded daily and credited to the account monthly. They are calculated every day of every calendar year.
Apple also adds fine print, which it certainly doesn’t need to use, but which serves as a safeguard in times of flash deposit leaks. “We reserve the right to require you to give us seven days written notice prior to withdrawing funds from your account,” the fine print also reads. The terms explain that Apple and Goldman Sachs may also “impose limits on the amount of funds transferred based on total amount or frequency.” For transfers to Apple Cash, the limit is set at $10,000 per transfer and $20,000 over seven days.
There are restrictions on depositing money by check, but most importantly, it’s a bank that doesn’t accept cash: “We don’t accept cash deposits in US dollars or any other foreign currency.”
Almost a decade ago, the Tim Cook-led company landed in the financial sector with Apple Pay, initially in the area of payment methods. It used this platform to launch its own credit card, which also offers discounts on the purchase of its products, and has also launched a deferred payment financial product as part of its financial diversification. Offering new services through its phones not only allows Apple to make its customers profitable, but also builds their loyalty. Both the payment deferral service and the new account are linked to the Apple credit card.
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