Goldman Sachs announced they will be raising their interest rate on savings accounts to 1.2% from 1.05%, with hopes of increasing deposits by customers.
The national average rate is only 0.06%. With $128 billion in overall deposits, Goldman Sachs also significantly trails other large consumer banks for customer deposits.
This hike in return rate in order to increase deposits is an attempt to increase profits for Goldman Sachs if they can determine how to lend them profitably.
Do you believe this will be a successful strategy for the bank?