Goldman Sachs has always been out of reach for most people. But now, the financial firm most synonymous with Wall Street started offering savings accounts and certificates of deposit this month from the website of its banking arm, GS Bank. The firm will accept new customers with as little to save as $1, though they will need $500 to open a certificate of deposit, WSJ reports.
The move was set in motion last August, when Goldman signed a deal to buy the online-deposit platform of GE Capital Bank. The transaction’s closing this month started the new era for the nearly 150-year-old firm.
The key question is whether Goldman Sachs Bank, or GS Bank as it’s called, offers savers competitive products. GS Bank currently offers a savings account with an APY of 1.05%, with no minimum deposit required to open an account. They also offer 1% on one-year certificates of deposits and 2% on five-year CDs.
Although there’s option out there that offer 5% (usually with a $5,000 cap), this rate is competitive with other popular online banks and much higher that the laughable average U.S. savings rate of 0.06%.
As with most online banks, GS Bank is also very competitive when it comes to fees. There are no transaction fees or monthly maintenance fees.
Depositing checks or getting your money out will be a hassle though. The savings account doesn’t offer online bill pay like many other online banks. It also doesn’t offer mobile check deposits. To deposit checks, you have to send them in by mail. And the only way to to access your funds is through transfers to another bank. There are no check writing options or ATM cards.
GS Bank Features
- Open Account
- 1,05% APY (1.04%APR)
- No minimum deposit to open
- No transaction fees
- Interest compounded daily, paid monthly
- Rate is variable and may change after the Account is opened
- Six withdrawal limit per statement cycle
- FDIC insurance up to the maximum allowed by law