Goldman Sachs will allow private citizens to bank with it instead of just people on Wall Street. Their online bank is called the GS Bank and it is online-only, which means you cannot walk into a bank to talk about your account. We were not too keen on writing a GS Bank review because they do not offer checking accounts, they don’t have an ATM network, and they offer very few banking services. But, our users have sent requests for a GS bank review. What we did discover was that they are not a great bank, but they do offer some very attractive savings rates, and some of their longer-term CDs also have attractive APY rates.
GS Bank Review – Benefits And Features
- There is no minimum balance for your savings account
- The minimum balance for a savings account is only one dollar
- GS Bank offers interest rates of over 1% with their savings accounts
- Your CD automatically renews ten days after maturity
- Their certificates of deposit have a minimum balance of just $500
- Get their best rate within ten days of opening your CD
- GS Bank’s CD rates rise as high as 1.85% APY
- Add up to six beneficiaries per account
- There is no incoming transfer limit
Perks And Downsides
[+] Earn interest with this bank because they mostly concentrate on savings and investments
[+] It is managed and owned by a long-established company
[+] Many of their investments are relatively safe compared to what other online banks offer you
[+] Their minimum balance is only $1
[+] There is no fee or starting deposit for opening your account
[-] They do not offer banking services such as checking accounts
[-] You cannot draw your money out with ATMs
[-] You need an account with another bank to transfer money to your savings
[-] There is no ATM network, no mobile app, and no savings goal tools
[-] They do not have a mobile app for quick access or for photo depositing your checks
[-] You have to mail checks to them or use an ACH transfer
[-] Their CDs have penalties for early withdrawals
They do not offer a checking account. It is an online-only bank that allows you to save money. People once thought that they were starting with savings accounts and were going to move towards checking accounts. One assumes they have not created a checking account service because their return on investment is not worth GS’s while. Instead of hunting down checking account services that do not exist, you should probably use GS for setting some of your money to one side for a rainy day.
As mentioned above in our GS Bank review, the GS Bank doesn’t offer checking accounts. If you want to put money into a GS Bank savings account, you will have to transfer money in from another bank or credit union’s account. It may take a few days for your transfers to move in and out of your account. You cannot withdraw your money from an ATM; you cannot write a check to get it out. It takes time to get money in and out of your savings account, but their interest rates are rather good, so it may be worth your while.
Certificates Of Deposit
If you opt for GS Bank’s CDs, then their short-term CDs offer rates that match what GS Bank’s savings accounts offer. In most cases, it is only worth getting a certificate of deposit if you choose a longer term. You may get a CD for up to six years, and the longer the term is, then the better the interest rate is.
You need to deposit and maintain a balance of at least $500 if you want a certificate of deposit. Their five-year rates CD rates offer interest rates of around 1.85%. You are given the best possible APY rate within a ten-day period. Open up and start your CD on day one, and if their CD’s APY rates go up within ten days of you starting your CD, then you get the higher rate for your could.
GS Bank review – Biggest Selling Point
Goldman Sachs bank is part of a financial company that has been around for over 150 years, so one assumes they know a little bit about investments. Their savings rates are good and their long-term CDs have great APY rates. Our GS Bank review found that you can stash your money away and forget about it with the GS Bank.
GS Bank review – Fees And Charges
During our GS Bank review, we did a lot of research to try to find out what their fees were. The website and GS Bank’s paperwork keeps saying there are no transaction fees. Common sense says that their fees are all very well hidden. They do mention penalties for things such as withdrawing your CD early. The penalty depends on the CD you choose. For example, with a five-year CD, the penalty is equal to 270 days of interest.
Maybe the bank doesn’t have fees because there is no way you may overdraw. Plus, you cannot withdraw from your savings account more than six times per month because they don’t let you, which means you will the incur any form of associated fee.
Whom Should Take Note Of This GS Bank Review?
As you can see by our GS Bank review, this bank is mostly for people who are looking to save. If you do not have a savings plan, then give the GS bank a miss until you have a full plan of action.
If you are looking to save, then remember that the GS bank is a no-frills bank. Their website is not fantastic, but you shouldn’t need to use it that often anyway. You will not be able to conduct your usual banking activities with your GS Bank account. Their savings accounts and Certificates of Deposit are just for savers only. People who are looking for low-risk investments should consider GS Bank because their savings accounts offer very little risk. GS Bank’s rates beat/match many other online and offline banks.
User Comments And Reviews
[+] The savings accounts are great because they offer high rates that beat many of GS Banks short-term CDs.
[+] Having money in a savings account means you can get to your money in a short space of time. However, the money cannot be spent impulsively because it still takes days to transfer out.
[+] Some people enjoy saving their money up in their savings account for a few months to earn interest before moving their money over to a long-term CD.
[+] It is very difficult to incur fees, and the fact that the service is a no-frills service helps reassure people so they know where there money is and how much it will earn.
[+] GS Bank is often compared with other banks when people review it. Many positive comments include notes on how another savings bank screwed them and how GS Bank didn’t.
[-] They share your personal information with other vendors automatically where you have to opt out right from the very beginning to avoid being bothered by marketing companies.
[-] Transfers into accounts appear quickly, but they do not clear and become available for as many as five days, which is quite a long wait.
[-] GS Bank doesn’t have people available for customer support around the clock. They do not indicate your wait time, so your may be stuck waiting for hours.
[-] Some people complain that they cannot get an account with GS Bank. What angers people is the fact that the bank doesn’t explain why applications are rejected.
[-] Their website has improved over the years, but the user interface is primitive when compared with High Street banks and other online banks.
Conclusion – GS Bank Review
As you can see by our GS Bank review, the GS Bank is not a bad one, but they are not the most convenient bank in the world. They give you a great place to stash your money if you want to earn a little interest. However, they make you transfer your money from your current bank to their savings account or CD accounts. The transfers tend to take a day or two, and your other bank may charge for outgoing transfers.
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The fact you cannot get to your money right away may be a plus for you. Without a checkbook, ATM network, or instant transfer attached to your savings account, it means you can’t get to your money to make impulse buys. Your impulse should have gone away before your savings money becomes available in your other bank account.