Apple’s (NASDAQ:AAPL) savings account offers a terrific yield (a 4.15% annual percentage yield of APY), roughly 10 times higher than traditional savings accounts. While the high yield attracts customers, the delay in moving funds out of the account has irked some of them, the Wall Street Journal reported.
The technology giant teamed up with Goldman Sachs (NYSE:GS) to launch its savings account in April. The high-yield account requires no minimum deposits, no fees, and no minimum balance requirements. Further, users can set up and manage their accounts directly from their Apple Card in Wallet.
Apple also promised that customers could withdraw funds with ease and at any time, with no fees. However, that hasn’t turned out well for some of its users.
According to the report, several customers faced delays in getting their funds out. Usually, most bank transfers are processed almost immediately. At times, a customer might face a delay, and that’s reasonable. However, in the case of Apple, the wait has been two to four weeks, which is strange.
A delay in moving funds could adversely affect the user base and lead to account closures. Thus, Apple needs to resolve its savings account issues quickly, as a better user experience could boost its ecosystem and lead more customers to own its multiple products.
While it remains a wait-and-watch story of how swiftly Apple resolves customers’ issues, the company continues to drive its installed base of devices, led by solid iPhone demand.
It delivered revenue of $94.8 billion during the last reported quarter, with iPhone sales reaching $51.3 billion. Impressively, its service revenue was at an all-time high. At the same time, Apple surpassed the Street’s forecast on the bottom line front and reported earnings of $1.52 per share in Q2.
Is Apple a Buy, Sell, or Hold?
Before moving ahead, it’s important to highlight that TipRanks identifies the top analysts per sector, per timeframe, and against different benchmarks. The ranking reflects an analyst’s ability to deliver higher returns through recommendations. Following the call, TipRanks’ algorithms calculate the statistical significance of each rating, analysts’ overall success rate, and the average return.
Among the 21 top analysts giving ratings on AAPL stock, 16 recommend a Buy, four suggest a Hold, and one has a Sell. Further, the consensus 12-month price target of all top analysts is roughly in line with its closing price on June 1.