Goldman Sachs Lowers 5 Year CD Rates
Goldman Sachs Bank, the banking arm of the investment firm Goldman Sachs Group (NYSE: GS), recently lowered their 5 year CD rates. The new 5 year CD rate is at 1.83 percent with a yield of 1.85 percent. The previous 5 year CD rate was 1.98 percent with a yield of 2.00 percent. You can see how this new 5 year CD rate compares with other 5 year CD rates available by searching our rate list at 5 year CD rates.
The investment firm, Goldman Sachs Group, has been in business since 1869 but only became a bank holding company about eight years ago. Goldman Sachs chose to become a bank holding company to calm investors during the financial crisis.
On September 21, 2008, Goldman Sachs released a press release saying the firm decided to become the fourth largest bank holding company to be regulated by the Federal Reserve. During the financial crisis, when Lehman Brothers failed, liquidity was a big issue for many investment firms.
Goldman becoming a bank holding company allowed them to collect deposits and also gave the firm permanent access to liquidity and funding through the Federal Reserve. About a year ago, GS Bank acquired the deposits of GE Capital Bank. In the transaaction, GS Bank acquired approximately $8 billion in online deposit accounts and $8 billion in brokered certificates of deposit from GE Capital Bank. GS Bank also acquired GE Capital Bank's online deposit platform.
GS Bank also offers several other CD terms with competitive rates. The most competitive rate right now for the CD term is on GS Bank's 12 month certificate of deposit. The current 12 month CD rate is at 1.19 percent with a yield of 1.20 percent. Listed below are all current CD rates at GS Bank.
Goldman Sachs Bank CD Rates
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