The Pros and Cons of Goldman Sachs' No-Minimum Savings Account

The online account pays 1.05% interest but needs at least a $1 balance for that.

Goldman’s savings account lacks some of the "nice-to-haves" that other banks offer, like a mobile banking app or online self-setting savings goals, NerdWallet banking expert Devan Goldstein said.

But the 1.05 percent rate is in the top tier nationally among the competition, and the $1 minimum balance to earn interest is also on par with NerdWallet’s favorites among online savings accounts, Goldstein pointed out.

For instance, Ally Bank's online savings account offers a 1 percent interest rate while it limits customer transactions to six a month. Synchrony Bank offers a 1.05 interest rate and customers can avoid a monthly fee by maintaining a balance of $30 or more.

"I’m interested in seeing whether GS Bank stays competitive once they’ve successfully met their near-term target for building a customer base, or if this is just an attractive initial offering to generate buzz," Goldstein said.

Among the downsides are no ATM cards for customers and GS Bank doesn't offer online bill pay or the ability to deposit checks online. Instead, customers have to mail them. There's also a limit of six withdrawals per statement cycle.

“This transaction increases the funding diversification and strengthens the liquidity profile of Goldman Sachs and GS Bank,” Robin Vince, treasurer of The Goldman Sachs Group, said in a statement last week. “We are pleased to add the capability for accepting online deposits, a strategic priority for the firm and for GS Bank.”