Goldman Sachs’s Online GS Bank is a Bank for Masses with minimum $1deposit

Goldman Sachs, the multinational investment banking firm launched the GS Bank. It is an FDIC-insured, online savings bank which will be a common man's bank and that means Goldman Sachs (GS) is now paving its way to be the bank for masses. The internet based bank will be available to anybody who has an internet connection and $1. That surely makes a difference from the company's minimum $10 million private wealth management accounts.

The new is offering just savings accounts, and not going a substitute for c day-to-day checking account of the consumers.  Goldman is offering a workable and attractive annual percentage yield of 1.05 percent but a little knowledge will help people know that there are several other banks which offer better interest rates on the savings accounts. The interest rate is better than the mean savings bank yield of .06 percent in the U.S but is comparatively in range, with some of the competitors such as Ally, which offers 1 percent APY.

However, the general depository returns from online banks are higher than traditional banks as they can save a range of costs that the banks with brick-and-mortar presence have to incur.

Goldman's acquisition of GE Capital Bank led to the birth of this online bank. It was earlier run by GE's capital arm.