Goldman Sachs is a banking name closely associated with Wall Street, not Main Street. As an investment banker, its primary business has long been trades, investing, and facilitating deals.
But the venerable institution is suddenly moving in a new direction, offering a savings account that requires as little as $1 to open.
Actually, it isn't Golden Sachs, itself, that is going after consumer deposits. It's the online deposit platform of GE Capital Bank (GECB) that it has recently acquired. But the parent company makes clear that it is eager to get into consumer banking.
“We are committed to providing our new online deposit customers the high level of service they have come to expect,” said Esta Stecher, CEO of GS Bank.
$16 billion in deposits
Goldman Sachs closed on the acquisition, including taking over about $16 billion in customer deposits after clearing federal regulatory hurdles, as well as winning approval from the New York State Department of Financial Services and the Utah Department of Financial Institutions.
“This transaction increases the funding diversification and strengthens the liquidity profile of Goldman Sachs and GS Bank,” Robin Vince, Treasurer of The Goldman Sachs Group, Inc., said in a release. “We are pleased to add the capability for accepting online deposits, a strategic priority for the firm and for GS Bank.”
The online savings account currently pays 1.05% APY on deposits. While there is no minimum deposit to open the account, there are limits on how much customers may deposit.
Interest compounded daily
Interest on deposits is compounded daily and paid monthly. Depositors may access funds multiple ways but are limited to six withdrawals per statement cycle. Money can be accessed online, by phone or by wire.
Deposits can be made the same way or with the old school method of mailing a check.
GS Bank is chartered in New York and is a wholly-owned, direct subsidiary of The Goldman Sachs Group, Inc. Like a traditional bank, its deposits are FDIC insured up to $250,000.