Apple (NASDAQ: AAPL) customers are encountering difficulties with accessing their funds from the company’s savings account, a partnership with Goldman Sachs (NYSE: GS) that was launched just in April this year.
The Wall Street Journal reports that some customers have reported experiencing delays and confusion when attempting to transfer money out of their accounts. Goldman Sachs, the custodian of the deposits, has stated that it takes the security of its customers’ deposits seriously but refrained from commenting on specific cases.
The bank acknowledged that in a limited number of instances, delays may occur due to security measures aimed at protecting customer accounts. Apple declined to provide any comment on the matter.
Transfers from new accounts, such as Apple’s savings account, can trigger anti-money laundering (AML) alerts and other security concerns, necessitating additional review processes that typically last around five days. Moving significant amounts of money from newly opened savings accounts to different accounts can raise suspicions.
Experts suggest that these delays are reasonable to conduct enhanced due diligence, although the length of the delay has surprised some. Dennis Lormel, a former US government financial crimes expert, opined that a two- to four-week delay appears excessive.
The Apple savings account has attracted customers seeking higher interest rates, its 4.15% rate dwarfs the national average of 0.25%. The new savings product reportedly brought in as much as $990 million in deposits over its first four days — with nearly $400 million just on launch day alone.
This new product from Apple and Goldman Sachs aligns with Apple’s strategy of expanding its presence in customers’ financial activities and enables Goldman Sachs to bolster its deposit base.
In 2019, the two industry giants launched the Apple Card, a digital credit card that was seen as the bank’s golden entry into the consumer industry. In January, the bank reported pre-tax losses amounting to $1.2 billion due largely to the credit card’s loan-loss provisions.
The bank has faced challenges in its endeavors to serve retail consumers, including regulatory inquiries. As a result, the bank has been scaling back its consumer lending operations and is evaluating strategic alternatives for its Platform Solutions division, which includes Apple Card.
Information for this story was found via The Wall Street Journal, Forbes, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.