By Siddharth Cavale
NEW YORK (Reuters) – ONE, a fintech company backed by Walmart Inc, is offering 5% interest on savings accounts of up to $100,000 as of Wednesday, a source close to the company said, as the battle for consumer deposits intensifies.
The rate is more than 12 times the national average of 0.4%, the source said, citing Federal Deposit Insurance Corporation data.
Apple Inc began offering 4.15% on its Apple Card savings accounts in April in partnership with Goldman Sachs Inc. Step, a fintech app catering to younger customers, offered 5% in May.
To qualify, ONE accounts must receive a direct deposit of at least $500 the previous month, or have a total daily balance of $5,000, or automatically save part of the customer’s paycheck.
All other savings balances will continue to receive a 1.00% annual percentage yield.
U.S. banks are trying to attract customers by offering bonuses for new accounts or regular deposits after Silicon Valley Bank and Signature Bank collapsed in March from an exodus of depositors seeking higher yields.
Coastal Community Bank holds the charter for ONE’s banking services, which include physical and virtual debit cards. ONE is majority-owned by Walmart but operates independently.
(Reporting by Siddharth Cavale in New York; Editing by Richard Chang)
