Goldman Sachs launches online-only bank for the masses

By: |
New York | Updated: April 25, 2016 11:34 PM

Goldman Sachs has officially launched an online bank aimed at households and small businesses as it expands from its Wall Street base and aims for the masses.

goldman sachsGoldman Sachs is also offering a five-year certificate of deposit at 2.0 per cent, also much higher than the going rates at other large banks. (Reuters)

Goldman Sachs has officially launched an online bank aimed at households and small businesses as it expands from its Wall Street base and aims for the masses.

The online-only GS Bank permits consumers to open an account for as little as USD 1, a big shift for a financial powerhouse that has built itself around serving billionaires and giant companies undertaking mega-mergers.

The move comes on the heels of Goldman’s acquisition of GE Capital’s online deposit platform, after which it assumed about USD 16 billion of deposits from some 145,000 customers.

“Welcome to Peace-of-Mind Savings,” reads the bank’s pitch to consumers who desire federally insured savings accounts.

Goldman is offering savers a relatively robust interest rate of 1.05 per cent, much higher than the 0.01 per cent now available at JPMorgan Chase and other retail banks.

Goldman Sachs is also offering a five-year certificate of deposit at 2.0 per cent, also much higher than the going rates at other large banks.

Goldman has no plans to open retail branches at a time when JPMorgan and other large banks have been trimming costs by cutting back on their retail presence.

Goldman’s purchase of the GE Capital assets was approved in March by the US Federal Reserve, which has welcomed the move into the mass market as a way to diversify Goldman’s business.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBI issues Master Direction on loan transfer
2Mispricing of risks a concern : SBI chairman Dinesh Kr Khara
3Survey finds over two-thirds of customers willing to switch to digital-only bank