Five Benefits of Banking Locally
A recent study by Fidelity Investments found that 95% of people who bank with a local financial institution were satisfied with the overall experience. Customers also saved an average of $86 on direct banking fees and had access to more network ATMs than when they banked through megabanks like Chase or Bank of America. With savings and satisfaction up for grabs, let's explore 5 benefits of banking locally.
1. Local Economy Support
Local businesses support the local economy in lots of ways, like buying materials locally, hiring local employees, and making charitable contributions. If you have a relationship with a local business, including a bank, you can feel good about the fact that you are helping your community grow to be strong and healthy. Additionally, businesses rely on having access to capital for growth. Banks are an integral part of accessing the money needed to expand operations and increase jobs in the community.
2. Local Community Support
Operating in tandem with other local businesses, banks support local communities in a multitude of ways. They help build the overall health of the community through philanthropic work and initiatives that improve education, provide job training, and increase access to financial resources. Banks are the foundation for helping families, non-profits and schools realize their goals. Solid relationships between banks and their customers help build stronger communities, and it's much easier to develop a relationship with a local bank than a megabank.
3. Personalized Service
Local and small business owners want to work with someone they know. Most are interested in keeping money in their community at all costs because as we discussed, supporting the local economy helps a community grow strong. A local bank is going to be familiar with the special attributes of their community that a megabank wouldn't know. For example, some businesses need special loans or lines of credit. Local banks are more likely to know their communities and businesses and are able to make informed decisions about your business's needs.
4. Lower Costs and Better Interest Rates
When you bank locally, you will enjoy lower rates and fees in comparison to big banks. This can help keep more money in the local economy and your personal bank account. Local banks will almost always offer free checking accounts, and they'll compete with attractive rates on savings accounts and loans. Depending on your financial product needs, a local bank is often a good bet to save money and get the services you desire.
Local banks offer more flexibility in their ability to extend financial services. Without the rigid and high-reaching policies megabanks use to keep their many branches in compliance, a local bank has greater flexibility in working with clients to provide their needed services. For example, in trying to get a loan your credit score will still be a factor, but it won't possess as much automatic veto power as with a megabank. A local bank will look at other factors and work with you to try to provide the loan you need.
If you’re looking for a local bank to do business with, Bundlefi can help. Use our free and easy tool to locate local banks and community financial institutions that are offering the services you need. You can even open an account today.