Goldman Sachs Bank USA plans to raise the rate offered on its deposits to 1.2%, up from 1.05%, according to Reuters.
Goldman now offers the highest interest rate on deposits in the U.S., Reuters reported, citing Bankrate.com. The national average for savings accounts is 0.06%, the report added, citing the Federal Deposit Insurance Corp.
The bank hopes the higher deposit rate will help it raise its profits from lending, according to Reuters. As strategies such as trading produce less returns, the bank wants to accommodate by lending more generally across its investment banking and wealth management businesses.
Goldman Sachs Bank USA is the consumer arm of Goldman Sachs Group Inc.