If you’re looking for a way to get more out of your savings account, Goldman Sachs wants to be the solution.
As the online banking industry continues to grow and become an increasingly popular choice among younger Americans, Goldman wants a piece of it. And it’s a pretty good deal for consumers.
Goldman Sachs looks to diversify with new online-only bank
The new U.S. online-only bank, GSBank.com, is offering a digital savings account at a rate of 1.05% — and you can open one with as little as $1.
When it comes to savings rates these days, what Goldman is offering is pretty good. At an annual rate of 1.05%, it’s higher than average U.S. savings rate of 0.06% and matches online competitors like Ally Bank (1%) and Synchrony Bank (1.05%).
Online-only banks can typically offer higher rates of return, because they don’t have all the costs associated with a brick-and-mortar branch.
The launch of the new bank comes as part of Goldman’s acquisition of GE Capital’s online banking business, along with $16 billion in online savings accounts and other deposits. According to the Financial Times, the new focus on Main Street is part of Goldman’s efforts to diversify sources of funding.
â€‹Read more: How to invest your first $1,000 to $5,000 wisely