Home / Business / Goldman Sachs launches GS Bank, an Internet bank with a $1 smallest deposit

Goldman Sachs launches GS Bank, an Internet bank with a $1 smallest deposit

Goldman Sachs has traditionally functioned like a run-of-the-mill investment bank. Minimums to open an comment were in a operation of $10M, and earnings were not guaranteed.

While that will still sojourn loyal for a firm’s resources government arm, Goldman is opening a doors to a masses with a launch of GS Bank, an FDIC-insured, internet-based assets bank.

And only what do we meant by a masses? Well, anyone with an internet tie and a dollar – since that is what any account’s smallest change will be.

GS Bank’s seductiveness rates will be high, giving business an annual produce of 1.05%. This rate trumps a normal U.S saving’s bank produce of .06% APY, though is relatively in line with other online opposition banks like Ally, that offers one percent APY.

Deposit yields from online banks are traditionally most aloft than normal banks, especially since of a cost assets that come from not carrying to support brick-and-mortar branches.

The bank was innate out of Goldman’s merger of GE Capital Bank, a online sell bank formerly run by General Electric’s collateral arm.

The launch of GS bank and merger of GE Capital Bank is a pierce by Goldman to variegate income streams and strengthen liquify in a marketplace where normal investment banking isn’t doing as good as it has in a past.

Currently, GS Bank has sum deposits of around $114 billion, that pales in comparison to a sum deposits of vast consumer banks like Wells Fargo and Bank of America.

Featured Image: Richard Drew/AP

Article source: http://techcrunch.com/2016/04/25/goldman-sachs-launches-gs-bank-an-internet-bank-with-a-1-minimum-deposit/