Deal Summary: Several CD rate increases including the 60-month CD (2.25% APY), 36-month CD (1.90% APY) and 12-month CD (1.40% APY).
Another big internet bank raised its CD rates. GS Bank increased the rates on most of its CDs today. The most competitive CDs are now its 3-year CD (1.90% APY) and 1-year CD (1.40% APY). This is the second time in the last month that GS Bank has raised its CD rates. The full list of rate increases are shown below:
- 1.40% APY 12-month CD (was 1.30%)
- 1.45% APY 18-month CD (was 1.35%)
- 1.55% APY 24-month CD (was 1.45%)
- 1.90% APY 36-month CD (was 1.65%)
- 1.80% APY 48-month CD (was 1.75%)
- 2.25% APY 60-month CD (was 2.05%)
- 2.30% APY 72-month CD (was 2.20%)
More details of these GS Bank CDs are shown in the following table. You can see the rate history of each CD by clicking on the “details” arrow on the right side of the row.
GS Bank’s early withdrawal penalties aren’t the best as compared to other internet banks. However, the bank does have a few nice features that CD customers should appreciate. I’ve summarized the most important features below. For more details, refer to the FAQ section of GS Bank’s website. In addition to the Q&A’s, the bottom of the FAQ section has links to important account disclosures.
GS Bank’s CD Features
- Minimum deposit is $500
- Early withdrawal penalties:
- 12 months to 5 years: 270 days’ simple interest on the principal at the rate in effect for the CD
- More than 5 years: 365 days’ simple interest on the principal at the rate in effect for the CD
- Partial early withdrawals of principal are not allowed.
- 10-day grace period at maturity. Interest is earned during grace period up to the day before the funds are withdrawn.
- 10-day CD Rate Guarantee ensures you get the highest interest rate GS Bank offers during the ten-day period starting on the day you open your CD, provided your CD reaches the $500 minimum deposit.
- You have 30 days from the day you open your CD to fully fund your CD Account. The term of your CD begins on the day of the final deposit into your CD Account.
- Accounts can be funded by an internal transfer, an ACH transfer, wire transfer or check
- Monthly interest disbursements are allowed to your GS Bank savings account or to one of your linked external bank accounts
GS Bank Account Features Applicable to Both Savings Accounts and CDs
- Maximum balance of $250K for individuals (new customers)
- You may add up to six beneficiaries to each account.
- A beneficiary must be an individual; you may not name a trust or other entity as a beneficiary
- Social security numbers for beneficiaries required
- Trust accounts are not offered
- No charge for sending or receiving wire transfers
GS Bank Online Savings Account
GS Bank didn’t increase the rate of its Online Savings Account, but the rate is still very competitive (1.05% APY on all balances), and this rate has held for more than two years. A summary of the important features unique to the savings account are listed below:
- No minimum deposit
- Rate applies to all balances of $1 or more (currently 1.05% APY)
- Free ACH bank-to-bank transfer service
- Allows links to up to 4 external accounts
- Maximum outgoing transfer is $125K per transaction if done online (no limit if done by phone)
- No incoming transfer limit (as long as the maximum balance limit is maintained)
- ACH Transfers out take 1 to 3 business days
GS Bank is the brand name of Goldman Sachs Bank USA, and it operates as an internet bank with all of GS Bank’s products available nationwide. Accounts can be opened using GS Bank’s online application. Account owners must be at least 18 years old and must be a U.S. citizen or legal resident.
Designating beneficiaries cannot be done in the online application. You can designate the beneficiaries for each of your POD Accounts by calling GS Bank or by using the Profile/Preferences tab in Online Banking.
The brand name GS Bank was established in April 2016 when Goldman Sachs Bank USA completed the acquisition of the internet bank portion of GE Capital Bank. GS Bank continued to serve the former customers of GE Capital Bank with the same savings account and CDs as before the acquisition. I reviewed the acquisition in this April 2016 post.
Goldman Sachs Bank USA (GS Bank) is the 15th largest bank in the nation based on assets. As of the latest FDIC data (December 31, 2016), the bank has $159 billion in assets and $115 billion in deposits. GS Bank has an overall health rating of “A+” on DepositAccounts.com, with a Texas Ratio of 0.70% (excellent), based on December 31, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $23.97 billion, an excellent annual growth rate of 62.23%. Please refer to our financial overview of GS Bank (FDIC Certificate # 33124) for more details.
How the CDs Compare
For the sake of brevity, I’ll just compare GS Bank’s most competitive CDs, the 1-year and 3-year terms.
When compared to the 204 similar length-of-term CDs tracked by DepositAccounts.com which require a similar minimum deposit and are available nationally, only six banks and credit unions have higher rates. Below is a sample of these showing how they compare with GS Bank’s 36-month CD.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.20% APY||36 Month CD Special ($500 min)||USALLIANCE Financial|
|2.00% APY||36-Month CD ($500 min)||Northern Bank Direct|
|1.95% APY||3 Year Yield Pledge CD ($5k min)||EverBank|
|1.90% APY||36-Month CD ($500 min)||GS Bank|
When compared to the 212 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationally, only nine banks and credit unions have higher rates. Below is a sample of these showing how they compare with GS Bank’s 12-month CD.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.50% APY||12 Month Certificate ($5k min)||Connexus Credit Union|
|1.46% APY||12 Month eCD ($10k min)||Virtual Bank|
|1.45% APY||1 Year Yield Pledge CD ($5k min)||EverBank|
|1.40% APY||12-Month CD ($500 min)||GS Bank|
The above rates are accurate as of 5/4/2017.