Imagine that the government had left SVB deposits up to fate. In that event, why would anyone bank anywhere other than JPMorgan, Bank of America, Citigroup, Wells Fargo, and the like? There’s an extremely simple answer, which I am qualified to give, because I am a reasonably normal American person with a bank account, not a venture capital-funded startup or midsize company.
All of my savings are with a digital bank that has no brick-and-mortar branches and that most people, I’m guessing, have never heard of. I have never spent a single second parsing my bank’s financial statements, and I picked my bank via a helpful series of articles about online banks on Bankrate.com. I bank with this institution because my savings account there earns me lots of interest, now more than 3.5 percent.
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