Recently, The Goldman Sachs Group, Inc. (GS Quick QuoteGS - Free Report) made headlines for its plan to raise savings deposit interest rate to 1.2%. The bank’s motive behind this step is to bolster deposits and compete with other large commercial banks.

Following the 15 basis points increase in the key interest rate, Goldman Sachs has become the highest interest rate paying bank, per personal finance website, Bankrate.com.

Among other major Wall Street banks, Bank of America Corp. (BAC Quick QuoteBAC - Free Report) provides 0.03%, while both JPMorgan Chase & Co. (JPM Quick QuoteJPM - Free Report) and Citigroup Inc. (C Quick QuoteC - Free Report) offer 0.01%. Per the U.S. Federal Deposit Insurance Corp., average national rate for savings deposits is 0.06%.

The investors have positively reacted to the news, which is reflected in the 2% jump in the company’s share price since Wednesday, when news of the hike hit the markets.

Since 2016, the bank has taken several initiatives to boost deposits, such as acquisition of the online deposit platform of GE Capital Bank and launch of digital consumer lending platform, Marcus. This interest rate hike is expected to improve the bank’s financials.

Shares of Goldman Sachs have gained 46.0% over the last one year, outperforming the 39.5% rally for Zacks categorized Financial - Investment Bank industry.

Currently, the stock carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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