The old-line investment bank is boosting its consumer presence, hiking its deposit rate to 1.2 percent. As Fred Katayama reports, that's way above those of their big bank rivals.
Goldman Sachs thumped its chest as its online bank significantly hiked its deposit rate for customers to 1.2 percent. Its website shows how its rate far surpasses those of big guns like Bank of America and Chase. The move actually makes Goldman the highest interest payer, according to personal finance site Bankrate.com. Its rate now slightly exceeds those of online kingpins Synchrony Bank and CIT Bank. And it far outstrips the national average of 0.06 percent for savings accounts. Bankrate analyst Claes Bell: SOUNDBITE: CLAES BELL, ANALYST, BANKRATE.COM, (ENGLISH VIA SKYPE) SAYING: "They're going to be highly attracted to, you know, these above-market rates you know, that Goldman is offering. And that's' eventually going to start to filter down to the large banks. I think you know, you see these internet banks raising rates. That's going to start to build pressure on larger banks to go ahead and increase their interest rates." Goldman is trying to grow deposits so it can boost profit and get a more stable base for funding. Regulators have been pressuring banks to rely more on deposits after the 2008 financial crisis. The investment bank is expanding its consumer presence. It entered the consumer lending game with Marcus, offering fixed rate personal loans. Last year, it purchased Honest Dollar, an online business that sells retirement plans.