Apple Says Users Have Deposited $10 Billion in Its Savings Account as Reports Suggest Goldman Sachs Wants to End Its Partnership ⇥ apple.com

AnnaMaria Andriotis, reporting for the Wall Street Journal in June:

Goldman Sachs Group is trying to end its partnership with Apple.

The Wall Street firm is in talks with American Express to take over its Apple credit card and other ventures with the tech giant, according to people familiar with the matter.

This story was followed by a deeper investigation published by the Information behind its paywall, and summarized by Malcolm Owen at AppleInsider:

The entire operation was costly for Goldman, to a considerable level. Apple Card was apparently responsible for at least $1 billion in pre-tax losses at Goldman between 2021 and 2022.

For Goldman, the deal is also very low-profit, as it doesn’t take a cut of interchange fees paid by merchants for transactions. The lack of other fees also limits Goldman’s other revenue sources from the operation, unlike other cards that include late or annual fees.

I am certain you are as heartbroken as I am that Goldman Sachs, of all companies, is struggling to cover the costs of a credit card program which charges between 16–27% interest but does not have an assortment of hidden fees.

Apple and Goldman have not commented publicly on the future of this relationship beyond the latter’s partial retreat from consumer banking. But Apple yesterday trumpeted the success of the savings account feature tied to Apple Card:

Today, Apple announced that Apple Card’s high-yield Savings account offered by Goldman Sachs has reached over $10 billion in deposits from users since launching in April. Savings enables Apple Card users to grow their Daily Cash rewards with a Savings account from Goldman Sachs, which offers a high-yield APY of 4.15 percent.

[…]

“We are very pleased with the success of the Savings account as we continue to deliver seamless, valuable products to Apple Card customers, with a shared focus on creating a best-in-class customer experience that helps consumers lead healthier financial lives,” said Liz Martin, Goldman Sachs’s head of Enterprise Partnerships.

In January, a couple months before this savings account was launched, Goldman said it had over $100 billion in deposits like these.