April 28, 2016
Goldman Sachs, the investment banker that deals with high net-worth accounts, has launched an online-only, U.S. savings bank, GSBank.com. The new virtual bank will allow savers to open no-minimum-deposit savings accounts, as well as 12-month term and five-year term CDs.
The move occurs in the wake of Goldman’s recent acquisition of GE Capital. It represents an effort by the investment bank to diversify its sources of funding. A depressed global market is forcing banks to find alternative revenue sources. This is true of Goldman, as its net earnings fell by 60% in Q1 2015.