Goldman Sachs Wants Your Savings

choi

Justin Barr, Goldman Turns Eye to Mom and Pop. Wall Street Journal, Apr 26, 2016.

Goldman Sachs Group, Inc "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 s $1, though they will need $500 to open a certificate of deposit.  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 [ie, consummation] this month

"Goldman Sachs's sudden fondness of small accounts is mainly driven by recent bank regulations that look more kindly on retail deposits.

"With the move, the New York company isn't offering full-service retail banking. For example, its savings accounts don't come with checking features, ATMs or Goldman branch to accept cash.  The main selling point, in addition to Goldman's cachet: high rates. The bank is touting a 1.05% yield on savings accounts, 1% on one-year certificates of deposit and 2% on five-year CDs.  Those rates are low historically, but much higher than what most large banks are offering these days.

My comment: WSJ has not published the report online yet. There is no need to read the rest.  Interested?