Why it Pays to Bank Local
Today, there are more banking options available to consumers than ever before making it difficult to know who to trust your hard-earned month with. Local, independent community banks are crucial to the success and vibrancy of the communities they serve. In fact, it pays to bank locally! Here’s why:
Lowers Costs and Better Services
Contrary to popular belief, most independent community banks offer the same variety of services as mega banks from online banking to credit cards at a much lower cost. According to national data, fees at independent community banks are much lower than those of mega-banks. Studies also show community banks, on average, offer better interest rates on savings and better terms on loans and credit card services.
On a more personal note, it’s not uncommon to be offered a fresh cup of hot coffee upon walking into an independent community bank. Independent community banks value each of their customers on a personal level. That’s because employees, ranging from tellers to the president and everyone in between, are oftentimes members of the same community. They are personally rooted in the communities and people they serve. Local bankers form deep and lasting relationships with their customers leading to higher quality of service, flexible decision making and less employee turnover within the bank.
When you keep your money local by making a deposit at your community bank, your bank can make more loans to the people in your community. Whether helping a family reach their financial goals or providing a local farmer with an operating loan, the impact is huge!
Independent community banks make 60% of all small business loans and 80% of all agriculture loans nationwide despite only holding 15% of the total assets across the country. Meanwhile, mega banks hold the other 85% of assets. Often, they pass on lending to small businesses and focus on creating opportunities elsewhere (Wall Street, not Main Street!). Because community bankers are rooted in the same community as their customers, they are more willing to work with small business owners, understand their needs and help them achieve their goals. The Federal Reserve Small Business Credit Survey showed 18% higher satisfaction with loans from community banks than mega banks.
Combined, these aspects of banking locally create a positive, snowball effect. More small business loans being made means more jobs created and economic growth for your local economy.
Spend a day out and about in your community and take note of who is sponsoring the local little league team, providing volunteers for a fundraising event or who volunteers on the local fire department. You probably won’t see employees of a mega bank! Instead, you will see familiar faces from your local community bank. That is because they live, work and play in your neighborhood; they are part of the community too. Behind every vibrant and thriving community is an independent community bank. Whether in the bank or in the community, community banks do good for the people they serve. They share in your commitment to your community!
Independent Community Banks: Just as Secure as any Mega Bank
Community banks are subject to the same federal insurance standards as mega banks. Meaning in the unlikely event that a bank fails for any reason, your deposit (up to $250,000) is insured by the government. Furthermore, community banks are held to the same security standards and safety protocols as mega banks. All financial institutions are held to rigorous and routine compliance standards which levels the playing field and ensure consumer protection regardless of a banks size.
Experience first-hand why it pays to bank locally by making the switch today! To find a community bank near you visit https://www.icbsd.com/find-a-community-bank/.