November 24, 2018

GS Bank Review

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If you are in the market strictly to save money at high interest rates, Goldman Sachs may be the answer you need. Don't expect accounts with a lot of bells and whistles, though, or you will be disappointed.

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In order to utilize Goldman Sachs' banking services, you must be comfortable banking online or over the phone. They aren't your typical "big-name" bank with branches located all over the country. What you get in exchange for the limited banking options, though, is higher than average interest rates and minimal fees.

Services Offered

Goldman Sachs only offers a savings account and high-yield certificates of deposit. They don't have checking accounts or even ATMs. What you get are high-yield savings options that require some extra steps as far as depositing money or gaining access to your funds.

  • Online Savings Account: Earn competitive interest rates after depositing just $1 in the Online Savings Account. Goldman Sachs doesn't charge monthly service fees on this account. You can set up automatic transfers from an external account to help your savings grow even faster. You are free to transfer up to $125,000 per month if you make your transfers online. If you do your banking over the phone, there is no limit as to how much money you can transfer.

  • High-Yield CDs: Goldman Sachs offers a variety of CDs starting at 6-month maturity dates and going all the way to 6 years. The longer you commit to tie up your money, the higher the interest rate you will earn on your investment. You lock in a rate, so you know exactly how much interest you will earn. The interest rate you earn depends on when your account reaches $500. If your account reaches $500 within ten days of opening the account, you get the highest interest rate within that 10-day period. If it takes you longer to get to $500, you get the interest rate at the time that your account reaches $500.

Reasons We Like Goldman Sachs

  • The interest rates are higher than most large banks offer. Because Goldman Sachs offers online-only accounts, you can get interest rates that are much higher than what you'd get at the top big-name banks with brick-and-mortar locations.

  • Your money is FDIC insured. Each account you open at Goldman Sachs is insured up to $250,000. If the bank goes out of business or runs out of money, the FDIC will reimburse you.

  • You can schedule electronic money transfers any time of day.Because you can schedule your money transfers online, you can manage them 24/7. The money will transfer according to Goldman Sachs' schedule, but you can have the peace of mind knowing that you did the transaction and the money will be moved on the next business day.

  • You can have your CD's interest disbursed to an external account. Initially, your CD's interest will be added to the CD's principal. If you want to have the money transferred to another account, though, you just have to call customer service to arrange it.

  • Goldman Sachs has extended customer service hours. You can reach a customer service representative via phone during the hours of 8 AM to 10 PM Monday - Friday and 9 AM to 7 PM Saturday - Sunday.

  • You can conduct all of your banking online. From opening the account to managing your money, you can do everything online without ever picking up the phone. Once you open the account, just register for online banking and you are free to manage your money without talking to a bank representative.

  • You can monitor your CDs online.Whether you want to check your CD's maturity date, figure out what to do with the money next, or withdraw the funds, you can access your account online. If you do want to withdraw the funds, though, you'll have to call customer service. Keep in mind that withdrawing funds before the maturity date could incur a penalty.

  • Goldman Sachs offers online calculators to help you see how much interest you could earn. Just enter your deposit amount and the amount of time you plan to save the money, and you'll get an estimate of the amount of interest you'll earn. This could be the motivating factor you need to start putting money away.

  • You have a 10-day grace period to decide what to do with a matured CD. Goldman Sachs provides advance notice of the upcoming maturity date on your CDs. Once the maturity date arrives, you have 10 days to do something with the money. You can withdraw the funds, renew the CD, or close that CD and open a new CD with a different term.

  • Goldman Sachs will help you set up CD laddering. If you want to make the most of your money, while having access to it periodically, you can set up CD laddering. You choose varying maturity dates for your money, which you split into several CDs. This way you can take advantage of the higher interest rates on longer-term CDs without tying up all of your money.

Reasons You May Want to Look Elsewhere

  • You can't make mobile deposits. Despite the technological advances most banks have made with the ability deposit checks via the bank's mobile app, GS has not jumped on board with this technology. If you want to make a deposit, you'll have to do so the old-fashioned way - via the mail. You can also deposit the money into an external account and then make a transfer online. Either way, it's extra steps you shouldn't have to take.

  • You don't get an ATM card. If you are used to making deposits or withdrawals from an ATM, you won't like what Goldman Sachs has to offer. You must conduct your banking transactions online or over the phone. This can add a layer of inconvenience when you want access to your cash fast.

  • There are no physical branches. If you are the type who likes to visit a branch in person, you won't enjoy Goldman Sachs. The banking portion of their business does not have any retail locations. You must conduct your business online or over the phone.

How It Compares

  • Ally: Ally offers a larger variety of accounts than Goldman Sachs, including a checking account. Their accounts have no monthly fees and you don't need a minimum deposit for the checking or CD accounts. Ally also has a network of ATMs for you to access your funds.

  • Barclays: Barclays has similar offerings as Goldman Sachs, with just online savings and CD options. Their savings account doesn't require a minimum balance and doesn't charge monthly fees. They also offer CDs with terms between 3 months and 60 months.

  • Capital One: Capital One 360 offers online savings and CDs like Goldman Sachs, but they also offer online checking. They don't charge monthly service fees and their interest rates tend to be higher than your standard big banks. They do charge steep overdraft protection fees if you opt into that service.

Bottom Line

If you are looking for a bank to replace your current retail bank with brick-and-mortar locations, you may want to keep searching. If you are looking for a safe place to deposit money where it may earn higher than average interest rates, then you are at the right place. Your best returns will be achieved with longer deposits and higher balances. When you combine that with the limited fees charged on the Goldman Sachs' bank accounts, it can be a winning combination for you.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

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