When you select a local bank, you want the products and services to provide a certain amount of value. Convenience is another important factor. You want a bank to be open when you need service.
There are many advantages to banking locally. Local banks may be smaller than national banks, but they intend to benefit the community and help residents and businesses thrive.
Stark contrasts exist between smaller community banks and the larger corporate banking system. There is more personalized service with a community bank whereas larger banks don’t even recognize you or acknowledge you by name until they access your account.
Larger banks don’t have the best reputations either. Over the past few decades, larger banks have weathered many scandals like funding pipelines to be built on land where people depend on the clean water supplies, mortgage scandals with skyrocketing interest rates that leave people homeless, and devious schemes to create fraudulent customer accounts to inflate their financial reports to stockholders.
Local banks know the importance of maintaining a stellar reputation and you often find your local bank employees volunteering to join projects to build homes for low-income families, collecting food donations around the holidays, and pitching in to help clean up local beaches with other organizations.
That Personal Touch
Local banks offer personalized attention. They listen to your needs and recognize you when you walk into the bank. You matter to them, and unlike larger banks, they ask how you have been, and what your goals are for the future. They genuinely want to know so that they can help improve your situation, and that’s a good feeling. There are a certain comfort level and trust that builds over time when you have an account at a local bank.
Smaller Banks Larger Perks
Smaller banks have a lot of perks. Most community-based banks offer lower interest rates on loans and mortgages, and better rates on savings accounts, and certificates of deposits. Some of these banks are generous and will offer gift certificates and rewards when you close on a mortgage or buy a new car financed through them.
Another huge benefit of banking locally is that you avoid any unnecessary fees associated with larger national banking chains. Many smaller banks offer services like free checking and savings along with smaller initial deposits. Lower fees are very beneficial to the community because more people can gain access to financial services for less.
Larger banks tend to put profit before the needs of the people. They are looking for ways to generate profits for their big stakeholders while charging fees and higher rates to the masses. Interest rates for loans are higher while rates on savings accounts tend to decrease to almost nothing. Some banks even charge fees when you don’t spend enough money in your account.
It’s only about profit for large banking institutions. There are no grace periods, no personalized service, and no perks for saving your hard-earned money in their financial institutions.
Growing the Local Economy
Local banking systems help to grow the local economy. They help small businesses in the community grow and expand through financing. Small businesses hire people to work which helps to stimulate the economy in the local markets.
With larger banks, businesses and people generally go through a very rigid and standardized loan process with higher interest rates and a lower rate of approvals.
Small banks are different than larger banks in that they recognize the need to listen and help people and local businesses. They strive to develop some of the best financial products and solutions available to uplift the community.