Goldman Sachs Returns To Its Roots With $1 Accounts

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Goldman Sachs Group Inc GS has for over a century been associated with uber-wealthy investors and corporate titans, handling exclusively deals with astronomical values. With such a reputation, the introduction of GS Bank, which accepts deposits as low as $1, may seem counter-intuitive.

Seen in the light of a recent Bloomberg article, however, it may seem more like Goldman is getting back to its banking basics. In the mid-to-late 1800s, the bank’s founder Marcus Goldman undoubtedly made use of the savings bank — a safe alternative for hardworking Americans looking for a safer place than their mattress to hold the savings that they struggled to obtain.

Related Link: Analysts Compare JPMorgan, Citigroup And Other Big Banks' Capital Plans To Expectations

In U.S. guidebooks passed between Jewish immigrants, savings banks were recommended as safe havens for immigrants’ money. According to one such book, “An account can be opened with as small a sum as $1.” Goldman’s present day CEO, Lloyd Blankfein, was born and raised in a neighborhood of working-class Jewish immigrants and their children and grandchildren. It could be that his upbringing, then, was the impetus behind GS Bank.

GS Bank offers an online savings account with a 1.05 percent annual yield that can be opened with as little as $1. According to Bankrate.com, that’s the highest annual percentage yield offered by any online money market account without a minimum to open (a minimum above $1, that is.)

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Posted In: MediaPersonal FinanceTrading IdeasGeneralBankrateBankrate.comBloombergGS BankLloyd BlankfeinMarcus Goldman
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