The name Goldman Sachs has long been synonymous with high finance and banking services for the uber-wealthy. But now, anyone with a few bucks and an Internet connection can open an account with the firm.
Last week, the bank unveiled GSBank.com, an online bank offering fee-free savings accounts with 1.05 percent interest and no minimum initial deposit.
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The introduction of the online bank follows Goldman’s purchase last week of GE Capital’s $16 billion deposit book and reflects a broader move by the Wall Street giant to increase deposits in the face of new liquidity standards that favor them over short-term bonds or loans, according to the Financial Times.
“We are committed to providing our new online deposit customers the high level of service they have come to expect,” GS Bank CEO Esta Stecher said in a statement following the acquisition.
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The bank will likely attract depositors based on its reputation alone, but its rates are fairly competitive, too. The average online bank savings account rate is just 0.6 percent, according to DepositAccounts.com (while brick-and-mortar banks offer a lousy 0.13 percent). Goldman’s rate is not the best out there, though. UFB Direct offers savers an annual percentage yield of 1.2 percent.
Beyond the rates and the name, however, the account is lacking some key elements of other online banks, including ATM access, online bill pay and an app. Users have to transfer funds online or mail checks in to make deposits and use transfers in order to access their cash.
