Are you uncomfortable sending your money to a huge, impersonal bank in a faraway city? Fortunately, there’s an alternative.
Big banks get all the attention, but there’s a lot to be said for banking locally. Consider these six advantages of choosing a local bank for your finances.
1. Easy Access
Often, community banks will have ATMs located on their property. You can’t overestimate the convenience when you’re in a hurry.
More importantly, you get security at a bank’s ATM than at a generic ATM in a shopping center parking lot. You typically also get savings. Usually, you can use a bank’s ATM for free, while other ATMs will often charge fees.
2. Fewer Fees
Banking fees are one of the biggest complaints of customers. But you can often lower your expenses when you use a local bank. For example, typically, community banks charge smaller overdraft fees. They may also waive other fees if you save them money by choosing electronic statements.
Checking accounts are often free. Having a local checking account makes it much simpler later to open a savings account. In contrast, establishing a savings account in a large bank can require meeting a long list of qualifications.
3. Easier Loans
You’ll often find it easier to obtain a loan locally than nationally. Why?
Suppose you need a business loan to expand your cafe. Recently, new homes and businesses have been built nearby, bringing you more customers than your cafe can seat.
Your neighborhood banker will be familiar with the area’s growth. She may have even tried unsuccessfully to get a table at your cafe. In other words, she has a deeper understanding of your situation than a decision-maker in another city. Her local insight may tip the scales in favor of you receiving your loan.
4. Helpful Business Relationships
Dealing with a large institution can seem soulless. On the other hand, if you bank locally, you can often develop a meaningful business relationship with your loan officer and other bank officials.
Such relationships can pay great dividends when you need special consideration for extenuating circumstances. For example, you may need the bank to look the other way if you’re late making a mortgage payment on your home loan.
5. Community Support
You may want to do something to contribute to the well-being of your community. Banking locally allows you to do so. For instance, you’re helping employ your friends and neighbors.
Your assets on deposit also allow your bank to play a charitable role for schools and organizations you care about. You’ll often find that banks are key contributors to charity functions, such as 5K walk-runs.
6. Broad Range Services
In your grandparents’ day, it wasn’t easy to receive locally some of the services you could get from a huge banking institution, but fortunately, that’s changed. You might be surprised that your community bank can often advise you on sophisticated financial matters such as estate and retirement strategies.
Since you work hard for your money, you should take time to find the ideal bank that will meet your needs, and usually, the ideal bank is your local bank.
Published By: Aize Perez
