Forget Bank Branches: Here's How Online Banks Have Changed Saving Forever
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I can't remember the last time I set foot in a bank branch. Between mobile apps and interest rates that crush the big banks, online banks have completely flipped the script on how people save money.
And maybe the best part is they've forced traditional banks to show just how little they value their customers. If you're still parking money in a branch savings account at a place like Bank of America or Wells Fargo, you're probably earning an interest rate close to 0.01%.
Meanwhile, online banks are paying 4.00% or more right now. That's the difference between a couple bucks and a plane ticket every year without you doing anything extra.
Higher rates with fewer strings
The biggest win with online banks is simple: higher yields. Without expensive branches to maintain, they can pass those savings on to customers. That's why we're seeing online savings accounts at 4.00% APY or higher while big-name brick-and-mortar banks stick to 0.01%.
Let's put numbers on it: $10,000 in a branch account earning 0.01% grows to about $10 in interest over a decade. The same $10,000 in a 4.25% online savings account? Closer to $5,200. That's a $5,190 gap for doing nothing other than moving your money.
Right now, you can earn 4.30% APY on a Western Alliance Bank High-Yield Savings Premier account. Learn more below and open an account today.
Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website.
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- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- Can open an individual or joint account
- Deposits and withdrawals can only be conducted via ACH transfer to/from an external bank account (limit to one linked account)
- No ATM access
- No wire transfers (inbound and outbound)
- No branch access; online only
Western Alliance Bank offers a higher APY than most high-yield savings accounts. Plus, it's FDIC insured; therefore, deposits are perfectly safe up to applicable legal limits. The main drawback is that accounts don't have many features. For example, you can only deposit and withdraw funds via ACH transfer to/from an external bank account. This account is solid for those who want a sky-high APY, but don't mind a bare-bones banking experience.
The annual percentage yield (APY) is accurate as of July 29, 2025 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Convenience is now the default
Remember when "online banking" felt weird and scary? Those days are gone. Mobile apps from top online banks are easy to use and packed with features. Remote check deposit, instant transfers, bill pay -- it's all there.
Most of us already bank online anyway. Whether you're with Chase or Ally, you're using your phone more than you're walking into a branch. So why settle for low rates when the online-only banks are just as easy to use?
Safety and peace of mind
Online banks don't have a building you can walk into, but deposits at FDIC-insured online banks are just as safe as those at your neighborhood branch. Up to $250,000 per depositor, per bank, per account ownership category -- it's the same rule everywhere.
Add in two-factor authentication and advanced security features, and your money is likely no less safe online than it is in a brick building down the street.
Why this shift matters now
Online banks aren't just a niche option anymore; they've changed how saving works for everyone. They've raised the bar on what customers expect, and if your money isn't keeping up, you're losing out.
If you're still tied to a branch account, ask yourself what you're really getting for that trade-off. Because the difference between $10 and $5,200 in interest is the kind of thing that can cover a vacation, pay down debt faster, or pad your retirement account.
You can compare the best high-yield savings accounts here and see which ones fit your needs. It takes minutes to switch, but the payoff could last for years.
Our Research Expert
Jake is a full-time Editorial Strategist for Motley Fool Money. He specializes in product ratings and all things credit cards, and wants to make sure each person has the best card for them.