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When choosing a bank, it is important to consider what institution will best suit your needs in terms of products, fees, how they value your relationship and what they do with your money.
According to the FDIC, 68% of Americans use a bank to manage their money. Out of that group of people, 84% say they like going to a physical branch to manage their money, reports Value Penguin. While large, national banking institutions have branches nearly everywhere, there are some major benefits to choosing a community bank.
Services, products, and rates can vary greatly among local and national institutions, making it difficult to know which option is best. That’s where the touch of small, local banks can make all the difference in your banking experience.
Here are five reasons why it makes sense to work with a community bank over a large, national bank.
Same services and products, lower cost
Locally-owned banks often have the reputation of not offering as robust an array of services and products as big national banks because of their smaller size and limited market.
This is simply not true. All manner of products and services available through large national banks are typically available with most community banks. In fact, according to the Harvard Kennedy School, community banks provide more than 50% of the nation’s small business loans and more than 77% of agricultural loans.
While community banks offer many of the same services and products as national banks, they have the advantage of offering them cheaper. The Institute for Local Self-Reliance explains that fees at small banks are typically lower than at big banks. They also have more competitive interest rates on savings accounts and credit cards and other loans because of their willingness to consistently present transparent and straightforward pricing.
Local banks fund local projects, keeping your money close to home
The success of a community bank lives and dies with the community it resides in. That said, banks are typically very interested in investing in the well-being and future of their communities.
Bankrate adds that “because they’re engaged in local matters, local banks may be easier to work with. That’s particularly true if you need to borrow money. For example, megabanks might be unwilling to fund your local business, investment property, or agriculture loan, but local banks are accustomed to evaluating loans in your area.”
Because of the local bank’s investment in the community, as opposed to other national investment interests, you’re likely to see a community bank’s displaying logos at local schools and other community events, as a sign that they were integral in making this event happen.
This is especially important for community banks like People’s Intermountain Bank. They say, “the community-banking brands we operate support our local communities by donating significant amounts to various local non-profit and community organizations, including schools.”
By choosing a community bank, you choose to keep your money and your support local.
Grow the local economy
Most new jobs come from small business growth, and small businesses wouldn’t exist without the approval of small business loans. This is where community banks are critical to local economies.
With more than half the nation’s small business loans being approved and funded through community banks, according to the Harvard Kennedy School, banking with a community bank is something you can feel good about.
They get to know their clientele
One of the frustrations that arise when working with a national bank is that they can be difficult to deal with. Out-of-area call centers, multiple points of contact, and rigid systems and processes are all part of the national bank experience.
On the other hand, community banks offer simple, customer relationship-based services for customers. Where multiple people might be involved in your financial matters on the national bank level, a community banker can take care of all your needs one-on-one for many years.
Further illustrating the advantage of a community bank, the Institute for Local-Self Reliance describes why community banks have the advantage over national banks. “Loan approvals and other key decisions are made locally by people who live in the community, have face-to-face relationships with their customers, and understand local needs.”
They value your relationship with them
Choosing a community bank means choosing your friends, family, and neighbors as your financial assistants. This relationship motivates community banks to be completely transparent and accountable.
People’s Intermountain Bank, unlike some national banks, strives to keep pricing straightforward for every client in addition to being totally accessible throughout whatever loan or approval process you seek. Establishing trust is essential to their livelihood and success, and this shows with every customer and transaction.
If you’re looking for a bank that values you, takes care of you like family and makes sure your money stays locally invested, People’s Intermountain Bank is a reliable financial institution.