Anyone have experience with Goldman Sachs online savings?

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xrw1
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Anyone have experience with Goldman Sachs online savings?

Post by xrw1 » Fri Jun 03, 2016 9:50 am

Hi everyone,

I currently have online savings account at Capital one (0.75% APR) and Barclays (1.00 APR). I have been meaning to move away from Capital one because of the lower rates to Barclays but I feel better if my money was in 2 accounts rather than one. I am not sure what the withdrawl limits are but I figure if that ever became a problem since I have two savings accounts I can draw from I should be fine.

I was wondering does anyone have any experience with the Goldman Sachs online savings account (1.05% APR)

Also in a general term, what has been everyone experience with withdrawing large amounts from an online savings account. I have been looking at houses and when the time is right I would need to withdraw my down payment.


Thank you!

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DaftInvestor
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Re: Anyone have experience with Goldman Sachs online savings?

Post by DaftInvestor » Fri Jun 03, 2016 10:07 am

Goldman Sachs acquired GE Capital Bank which is how they got into this business.
I've got this account and like it FAR better than CapOne360. Not only is the interest rate higher - but with CapOne I had to wait 3 days for ACH transfers to complete - with GS they complete in 24 hours. Regarding withdrawing large amounts - I don't see how the amount makes difference. Most I've had to move at once with this account is $25,000 (and didn't have an issue).

phr
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Re: Anyone have experience with Goldman Sachs online savings?

Post by phr » Fri Jun 03, 2016 10:12 am

xrw1 wrote: I currently have online savings account at Capital one (0.75% APR) and Barclays (1.00 APR). I have been meaning to move away from Capital one because of the lower rates to Barclays
Capital One 360 has a 1% FDIC insured money market for minimum deposit of $10,000. It takes 2 minutes to set up if you already have an online savings account with them.

camaro327
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Re: Anyone have experience with Goldman Sachs online savings?

Post by camaro327 » Fri Jun 03, 2016 11:29 am

I've used GSbank and had the same experience as DaftInvestor.

However, why not open a second account at Barclays. Each account would have it's own limit on the number of monthly withdrawals.

Johnny Thinwallet
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Re: Anyone have experience with Goldman Sachs online savings?

Post by Johnny Thinwallet » Fri Jun 03, 2016 2:08 pm

We were originally with GE Capital online savings and just stuck with GS Bank through the transition a few months ago. It's pretty much the same exact platform as GE Capital, and there's been no issues at all. ACH transfers are one business day. They did reduce the "hold" time on ACH deposits down to three days whereas GE Capital used to be five days, but that's basically been about it for changes that I've noticed.

There is a note in the account about transferring large deposits (greater than $250k) via ACH, but it simply says to just call them. If you're concerned about being able to withdrawal a large amount for a house down payment, I'd just suggest giving them a call.

xrw1
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Re: Anyone have experience with Goldman Sachs online savings?

Post by xrw1 » Fri Jun 03, 2016 2:29 pm

Kind of a silly question but what is the difference between a Money Market and an Online savings account?

This is good that people have been Satisfied with the GS bank. I will be opening one soon. Do you guys know if there is an easy way to transfer money from my Capital One 360 to my GS Account when it is fully established? or do i need to transfer from Capital One to my checking account then transfer to GS account?


Thank you in advance!

FedGuy
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Re: Anyone have experience with Goldman Sachs online savings?

Post by FedGuy » Fri Jun 03, 2016 4:39 pm

Does Goldman Sachs offer two-factor authentication? (And, just to be clear, since some banks misuse the term: I'm referring to the option to be required to enter a code, which changes every 30-60 seconds and is sent by text message, smart phone app, or hardware token, every time I log in).

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Phineas J. Whoopee
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Re: Anyone have experience with Goldman Sachs online savings?

Post by Phineas J. Whoopee » Sat Jun 04, 2016 9:00 pm

xrw1 wrote:Kind of a silly question but what is the difference between a Money Market and an Online savings account?
...
Not silly at all, and in fact kind of confusing.

I'll assume you're asking about a Money Market Account, but that's the confusing part right there in a nutshell. Allow me to explain.

There were, and still are, savings accounts. For an awfully long time the interest rate they offered was determined by regulation, and it varied by type of institution. Banks paid one rate, and savings & loans a little more, and there were others. At one time prevailing interest rates were such that the mandated savings account rates were way too low.

To compensate, depository institutions offered a toaster*, or microwave oven, and eventually color televisions, which were still conspicuous consumption items then, as a bonus for opening the account. In their lobbies they displayed pyramids of empty boxes for the things. Every December the pyramids were ornamented in green and red. I am not joking.

Around that time somebody clever invented a special type of mutual fund that pretended its net asset value was always $1.00. It wasn't backed by government guarantees at all, but the advertising only mentioned the fact in the very fine print. They were called Money Market Funds, because they invested in short-term high-quality obligations, like commercial paper. Since they returned the underlying asset interest, less expenses, their rates were higher than those of regulated savings accounts.

Banks, which are no dummies, lobbied Washington for permission to offer Money Market Accounts, with the idea their interest rates could be higher than the savings account regulated rates. Eventually it worked. The name was intentionally confusing.

Today, interest rate caps are (mostly) removed from savings accounts. Banks still offer Money Market Accounts. Mutual fund families still offer Money Market Funds, although for the latter regulations have recently tightened.

Both Money Market Accounts and Savings Accounts, to address your question directly, are federally-insured deposit accounts with depository institutions. They both offer interest, higher or lower, with high today meaning approximately 1%. Federal regulations require a limit of six, except for some, see the next paragraph, monthly withdrawals from either. Typically money market accounts come with checkwriting privileges, and savings accounts don't, but you'll find exceptions.

This is the next paragraph, the one I suggested you see. The six withdrawals do not include:
Wikipedia wrote: ...
Regulation D does not emplace the six-time transfer limit on outbound savings or money market account transactions initiated in person, via messenger or mail; over-the-counter (OTC) withdrawals and transfers, ATM withdrawals and transfers, or installment loan repayments.
...
I included the history to illustrate how we got to our present, deliberately confusing, situation. Hope that's helpful.

We, as a society and economy, grew complacent. Money Market Funds gathered more and more investments, therefore businesses relied on them more and more for loans of working capital. Then the global financial crisis hit. Companies were starved of operating funds. Much wailing and gnashing of teeth ensued. We made it, but it was no sure thing, and it wasn't so much the fat cats' mansions that were on the line, as it was efficient farming, distribution of food, and prevention and treatment of infectious disease. It could have been much worse. I'm convinced it nearly was. Others may disagree.

* There was a time when I was thinking maybe I should get married. I like toast, you see, but didn't own a toaster, and banks weren't giving them away anymore, so it seemed like a reasonable tradeoff. It was either that or wait around for a relative to pass away, naming me as their small-appliance heir. Then one day I found out I could buy my own toaster.

PJW

xrw1
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Re: Anyone have experience with Goldman Sachs online savings?

Post by xrw1 » Tue Jun 07, 2016 9:18 am

thank you very much for the detailed explanation PJW! It makes more sense to me now!

alfaspider
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Re: Anyone have experience with Goldman Sachs online savings?

Post by alfaspider » Tue Jun 07, 2016 9:45 am

I opened an account with them last month. I had a few minor IT hiccups (mostly getting one of my checking accounts added), but overall the experience has been fine. The interest rate is as good as it gets without playing games (deposit caps, teaser rates, etc.).

fourwheelcycle
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Re: Anyone have experience with Goldman Sachs online savings?

Post by fourwheelcycle » Wed Aug 31, 2016 10:28 am

Re: Two Factor Authentication

GS Online Bank does not offer two factor authentication using a separate code sent to your phone or email. They use challenge questions and call this "multi-factor authentication".

I have an account at GS that I originally started at GE's online bank, before GE began to back-off on its financial services lines. My GS account has functioned very satisfactorily, but I do wish they would add two factor authentication like Bank of America and Vanguard.

geegecko
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Re: Anyone have experience with Goldman Sachs online savings?

Post by geegecko » Wed Aug 31, 2016 1:43 pm

No problems with a GS savings account.

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bligh
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Re: Anyone have experience with Goldman Sachs online savings?

Post by bligh » Wed Aug 31, 2016 2:02 pm

I keep my emergency fund at GSBank. Have had an account for about 6 months now and have had no issues thus far. Quick transactions, good UI. I recommend it.

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Phineas J. Whoopee
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Re: Anyone have experience with Goldman Sachs online savings?

Post by Phineas J. Whoopee » Wed Aug 31, 2016 3:52 pm

fourwheelcycle wrote:Re: Two Factor Authentication

GS Online Bank does not offer two factor authentication using a separate code sent to your phone or email. They use challenge questions and call this "multi-factor authentication".

I have an account at GS that I originally started at GE's online bank, before GE began to back-off on its financial services lines. My GS account has functioned very satisfactorily, but I do wish they would add two factor authentication like Bank of America and Vanguard.
In addition to being a security problem, that's a terminology problem, and it isn't as if the IT staff Goldman employs doesn't know the difference.

The factors are: something you know; something you have; and something you are. Two-factor authentication requires, unsurprisingly, two of them.

Relying on multiple things you know is still only one factor. Sheesh on GS.

PJW

malabargold
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Re: Anyone have experience with Goldman Sachs online savings?

Post by malabargold » Wed Aug 31, 2016 6:17 pm

GS: Please do not feed the animals.

FedGuy
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Re: Anyone have experience with Goldman Sachs online savings?

Post by FedGuy » Wed Aug 31, 2016 7:13 pm

fourwheelcycle wrote:GS Online Bank does not offer two factor authentication using a separate code sent to your phone or email. They use challenge questions and call this "multi-factor authentication".
Thanks! I guess I'll keep my money where it is, then.

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Kenster1
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Re: Anyone have experience with Goldman Sachs online savings?

Post by Kenster1 » Fri Sep 02, 2016 1:21 pm

Chase does 2FA but only when trying to log in from an unrecognized device. I haven't run into seeing an option that would allow you to set it so that it enables the 2FA every time you log in no matter which device you use.
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oldcomputerguy
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Re: Anyone have experience with Goldman Sachs online savings? -- GS ups rates

Post by oldcomputerguy » Wed Jun 07, 2017 10:08 am

Bumping this thread back up as I happened across this news on Reuters -- Goldman Sachs Bank is going to bump up their savings account rate to 1.2% today.
The Wall Street bank's consumer arm, Goldman Sachs Bank USA, plans on Wednesday to raise the rate it offers customers on deposits to 1.2 percent, slightly higher than rivals Synchrony Bank, CIT Bank and New York Community Bank's My Banking Direct.

Goldman had previously offered savers 1.05 percent. The average national rate for savings accounts is currently 0.06 percent, according to the U.S. Federal Deposit Insurance Corporation.

The move makes Goldman the highest interest paying bank, according to personal finance website Bankrate.com. The firm is aggressively trying to boost its deposit base and attract Main Street clients.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

thangngo
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Re: Anyone have experience with Goldman Sachs online savings?

Post by thangngo » Wed Jun 07, 2017 10:27 am

Goldman Sachs just increased interest rate for online savings to 1.20%. I'm transferring my savings from Ally to GS now. :sharebeer

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bligh
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Re: Anyone have experience with Goldman Sachs online savings?

Post by bligh » Wed Jun 07, 2017 10:32 am

I have had good experience with GSBank however a word of warning. If you accidentally make more than 6 transfers in a month, the interface will silently fail. In other words it will let you enter the 7th or 8th transfer, give you a confirmation, but never actually make the transfer, send you an email or show a notice/message/error when you go back to the website to check up on why the money hasn't transferred yet. The transfer request will just silently disappear.

I called their customer support and told them that they need to improve the interface to at the very least WARN the user that this transfer may not go through due to the 6 transfer limit.

Other than that I have been using them for over 6 months now and it is a fine online savings account.

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KSOC
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Re: Anyone have experience with Goldman Sachs online savings?

Post by KSOC » Wed Jun 07, 2017 1:21 pm

thangngo wrote:Goldman Sachs just increased interest rate for online savings to 1.20%. I'm transferring my savings from Ally to GS now. :sharebeer
Sweet. I have part off my ER there. Skim the interest every month to Total Stock Market. Might have to move some of my Ally too.
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Grasshopper911
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Re: Anyone have experience with Goldman Sachs online savings?

Post by Grasshopper911 » Wed Jun 07, 2017 1:41 pm

I have both Barclays and Goldman Sachs online accounts.

Both fantastic and pretty much identical.

Depending on your situation, it's important to note Barclays will allow you to identify a trust as a beneficiary. Goldman does NOT allow this. (Disappointing... No clue why they don't...)

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DaftInvestor
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Re: Anyone have experience with Goldman Sachs online savings?

Post by DaftInvestor » Wed Jun 07, 2017 1:47 pm

The main page says 1.2% - but when I log in and look at my account it is showing 1.05%. Anyone else seeing this? Maybe they just haven't updated existing accounts yet?

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oldcomputerguy
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Re: Anyone have experience with Goldman Sachs online savings?

Post by oldcomputerguy » Wed Jun 07, 2017 1:51 pm

DaftInvestor wrote:The main page says 1.2% - but when I log in and look at my account it is showing 1.05%. Anyone else seeing this? Maybe they just haven't updated existing accounts yet?
The Reuters story indicated that the change was supposed to happen today. Maybe they just are offering the higher rate to new investors (it reportedly was being done to entice new depositors into moving their money). Or perhaps they have just not yet gotten around to posting the change to existing accounts.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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bligh
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Re: Anyone have experience with Goldman Sachs online savings?

Post by bligh » Wed Jun 07, 2017 1:53 pm

DaftInvestor wrote:The main page says 1.2% - but when I log in and look at my account it is showing 1.05%. Anyone else seeing this? Maybe they just haven't updated existing accounts yet?
Haha, I already called them. The rep said the rate is effective today but the logged in website will not update till tomorrow, but the rate is applicable for money in the account today.
Last edited by bligh on Wed Jun 07, 2017 1:54 pm, edited 1 time in total.

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DaftInvestor
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Re: Anyone have experience with Goldman Sachs online savings?

Post by DaftInvestor » Wed Jun 07, 2017 1:53 pm

oldcomputerguy wrote:
DaftInvestor wrote:The main page says 1.2% - but when I log in and look at my account it is showing 1.05%. Anyone else seeing this? Maybe they just haven't updated existing accounts yet?
The Reuters story indicated that the change was supposed to happen today. Maybe they just are offering the higher rate to new investors (it reportedly was being done to entice new depositors into moving their money). Or perhaps they have just not yet gotten around to posting the change to existing accounts.
Thanks - I'll check again tomorrow. If its the former I'll see the change. If its the latter (will call to confirm) then I'll close and re-open the account (or move everything to Synchrony).

SrGrumpy
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Re: Anyone have experience with Goldman Sachs online savings?

Post by SrGrumpy » Wed Jun 07, 2017 1:58 pm

DaftInvestor wrote:The main page says 1.2% - but when I log in and look at my account it is showing 1.05%. Anyone else seeing this? Maybe they just haven't updated existing accounts yet?
Probably no biggie. That happened with my Ally Savings when they raised the rate to 1.05% from 1%. It took a day or so before my account recognized the change.

Note Ken Tumin's analysis at depositaccounts: The rate hike isn’t big enough to move GS Bank to be a rate leader, but it does put them ahead of several other big internet banks [I'm not sure who offers a better rate]. It’s a nice rate increase, and hopefully, it’s a sign of things to come as we see more Fed rate hikes.

annielouise
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Re: Anyone have experience with Goldman Sachs online savings?

Post by annielouise » Wed Jun 07, 2017 3:28 pm

I have been with them since GE Capital days. Recently, there was a problem with the website which took awhile to solve. While talking to customer support (who are great), I learned the cause of the problem was due to the software. I became concerned about the quality of their software engineers.
I mentioned the issue to my son, who works in software at another bank, and asked for his opinion, fully expecting him to tell me that I was worrying over nothing. Instead, he suggested that I move my money!
Just thought I'd share - in case you were thinking about giving them a chance for the higher rate.

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bligh
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Re: Anyone have experience with Goldman Sachs online savings?

Post by bligh » Wed Jun 07, 2017 3:58 pm

annielouise wrote:I have been with them since GE Capital days. Recently, there was a problem with the website which took awhile to solve. While talking to customer support (who are great), I learned the cause of the problem was due to the software. I became concerned about the quality of their software engineers.
I mentioned the issue to my son, who works in software at another bank, and asked for his opinion, fully expecting him to tell me that I was worrying over nothing. Instead, he suggested that I move my money!
Just thought I'd share - in case you were thinking about giving them a chance for the higher rate.
What was the issue? I have been keeping my cash reserves at Goldman for a few months now. I had an issue with their software too (described in a post further up in the thread), but I just figured their UX engineers sucked.

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