Apple’s new Savings account might have already crossed $1 billion in deposits

Apple Savings may have just launched a couple of weeks ago, but that hasn’t stopped people from dumping a ton of money into it already.

As reported by Forbes, Apple Savings may have already crossed $1 billion in deposits. According to someone familiar with the product’s performance, it achieved around $990 million in deposits in the first four days and $400 million in deposits in the first day alone.

Apple’s AAPL -0.1% freshly launched high yield savings account brought in as much as $990 million in deposits over its first four days, according to two sources familiar with the matter. On launch day alone, the savings account drew nearly $400 million deposits.

Apple Savings, which is currently exclusively available to Apple Card cardholders, offers an APY of 4.15%, a huge jump compared to traditional banks which many still offer less than one percent in savings accounts. Richard Crone, CEO and founder of payments firm Crone Consulting, said that many customers are moving deposits to fintech accounts like Apple’s in response to poor offerings elsewhere.

“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.”

According to another source, that amount of deposits came from the opening of around 240,000 accounts in one week — an astounding achievement for a completely new account. It’s also to be noted that this savings account is still only available to Apple Card cardholders. Imagine how many accounts will be opened if Apple opens this up to all iPhone users.

As Apple Savings continues to gain momentum with Apple Card cardholders, the company is also gearing up to announce its latest software at WWDC23 in June. It is also expected to be ready to unveil Reality Pro, its rumored mixed-reality headset.