Local Banks Offer Personal Service

Author: BankFeeInsider.com     Thursday, September 11, 2014 12:00 AM

Local banks are committed to the community they serve. While a big chain might feel more convenient, working with a small bank has a number of advantages for both you and the town you live in.

Community Banks Have Lower Fees and Higher Returns

Community banks can offer customers all of the same conveniences that national banks can offer, and the fees community banks charge are substantially lower. The percentage rates community banks pay on savings accounts and CD's also tend to be higher than national chains.

Community Banks Have More Leeway

When you apply for a mortgage at your community bank, the banker will have more leeway when it comes to approving your mortgage. This can be very important if your income is close to the limit for the home you want to buy, or your credit score isn't as high as it should be.

Invest in Your Town

When you put your money into a local bank, you are supporting a business that is invested in your community. Local banks get involved in the community because the better the community prospers, the better the bank does financially. National banks don't have roots in any community and often invest deposits away from the area where they are doing business.

Build the Local Economy

With a community bank, the goal is usually to take in deposits and turn them into solid investments through providing loans to members of the same community. National banks use a big portion of their deposits to take a chance on Wall Street. This means that if they make a bad decision, the national bank will suffer.

Local banks offer internet banking, debit cards, mortgages, car loans, and most other services that national banks offer. For deposit accounts, you will get more of a return with a local bank. The convenience of having a bank throughout the country isn't enough for most people to turn to a national chain.

Most people have their paycheck direct deposited, and few people really need a physical bank in order to make a transaction. When you go with a local bank, you are investing in your community and keeping your money local.

When you do have to go into the bank, the staff at a local bank will remember who you are. They are committed to customer service that makes you understand how important the local community is to their business.

 

Source: BFI