Goldman Sachs opens doors to public with $1 minimum deposit

© Lucas Jackson
After 150 years of catering to the wealthy, Wall Street bank Goldman Sachs is now offering online banking to anyone. Accounts require a minimum deposit of $1 and offer an annual yield of 1.05 percent.

The change follows the acquisition of the online-deposit platform of GE Capital Bank and is part of the strategic plan for restructuring pushed by falling profits as well as stricter federal regulations.

The bank's revenue fell 40 percent to $6.34 billion January through March this year.

Goldman is looking to diversify its revenue streams and strengthen liquidity in the market.

The new GS Bank accounts don’t have transaction fees, but the number of transactions is limited to six transfers or withdrawals a month.

Besides an instant access savings account, Goldman’s online bank allows various certificates of deposit, from six months to six years. The six-month deposit pays an annual percentage yield of 0.7 per cent that is five times more than the national average.

According to market research group TNS; online banks are the only banking category showing sustained growth over the past decade. Clients are leaning more towards technology and convenience as well as losing confidence in mainstream banking.

Deposit rates in online banks are higher than in traditional banks as there’s no need to invest in supporting brick-and-mortar branches.

Goldman Sachs has traditionally operated as an investment bank with the minimal sum to open an account of $10 million.