For a while, tech stock Apple (NASDAQ:AAPL) suffered from a perception that it had run out of innovation. With its various iDevices starting to look much the same with each subsequent release, some thought that the days of innovative Apple were gone. Then Apple started offering savings accounts. And investors responded with a kind of mild annoyance, sending the stock down fractionally in Monday afternoon trading.
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Yes, Apple now offers savings accounts. Those who hold an Apple Card credit card can now get access to a high-yield savings account, paying a hefty—especially for a savings account—4.15%. Further, the Apple savings account looks like a lot of savings accounts. The accounts require no fees from the holder, nor are there minimum deposits involved or even balance requirements. Though users won’t be able to hold more than the FDIC-insured value of $250,000 in said accounts.
Those who want to withdraw money will be able to do so quickly, simply by requesting a transfer to a bank account linked to the Apple savings account. Apple set up the accounts along with Goldman Sachs (NYSE:GS), and notes that the 4.15% offered is close to 10 times the national average. Apple’s service business has been on a tear in recent years, as services like Apple Music, News, and Fitness have seen revenue gain four-fold since 2014.
Meanwhile, the analyst community is still strongly on Apple’s side. With 23 Buy ratings against five Holds and one Sell, Apple stock is rated a Strong Buy. However, with an average price target of $171.16, it offers an anemic upside potential of just 4.15%.
