Goldman Sachs Returns To Its Roots With $1 Accounts

Goldman Sachs Group Inc (NYSE: 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.

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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.)