When it comes to choosing a bank, there are a few things you should consider. Will you open an account or apply for a loan with a smaller, community bank? Or will you choose a larger institution? In many cases, it is better to side with the community bank, for more than one reason.
Why should you choose a community bank like Landmark over a bigger, corporate bank? Let's take a look at a few of the main selling points for why the smaller organization is the better option:
"You get the same service and options from the community members you know and trust."
1. The perks of being a local
The first reason you should choose a community bank is simple - these organizations are large enough to provide you with all of the services you need while at the same time providing you with the personalized service you expect from a local outfit. According to the Institute for Local Self-Reliance contributor Stacy Mitchell, community banks may be able to offer better interest rates on loans and lower annual fees for keeping accounts open with them.
2. Same technology services are offered
The services that consumers have come to expect from their banking institutions - for instance, online banking, video tellers and customer call centers - are all available from community banks. This means that you get the same service and options from the community members you know and trust.
3. More convenient
In a smaller town, a community bank can be more convenient than the larger branches. It's possible that people will know you better - or remember your face - and thus it will feel more comfortable than if you were a simple number to a larger corporate organization. In addition, according to Business Insider contributor Susan Ladika, credit unions and smaller banks may provide the opportunity to link your high-yield checking account with an interest-bearing savings account. This gives you the option of saving more money - while at the same time giving the bank the chance to foster customer loyalty.
4. Support your community
Banking locally is also a great way to lend your clear support to the community as a whole. Banks are small businesses, after all, and putting money into local enterprises is an important part of being a citizen. In addition, small businesses need money to grow - and where do they go? Their local banks, of course. Therefore, supporting small banks means supporting the local economy.
"Big banks, meanwhile, allocate relatively little of their resources to small businesses," Mitchell wrote. "The largest 20 banks, which now control 57 percent of all bank assets, devote only 18 percent of their commercial loan portfolios to small business."
It's clear that community banks offer a lot for both local businesspeople and general consumers alike, and there are plenty of reasons that you should choose to do your banking with them instead of with bigger corporate organizations.
For more information on effective wealth management strategies, contact Landmark Bank.
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