Why I Only Use Traditional Banks as a Digital-to-Cash Middleman

When it comes to traditional brick-and-mortar banks, I use mine solely as a middleman. With the extremely low interest rates offered on savings, there’s little incentive to keep a significant portion of my money there.

Outside of proper investments, a large part of my savings is kept in high-yield online savings accounts, which don’t have physical branches. Online banking has become a key part of my passive income strategy, and it’s disappointing to see that major banks still offer such uncompetitive options for savers. Sure, they may provide credit products or the occasional promotional Certificate of Deposit, but if I’m not using those, the benefits are practically nonexistent.

I only use my traditional bank when I need to convert digital funds into physical cash. Typically, I transfer money from my online savings account into my bank, then withdraw the cash. For me, the bank functions as little more than a digital-to-physical cash conversion service. Besides fee-free ATM access, there’s not much value in maintaining the account. If those conveniences disappeared, I’d likely close it altogether.