Local banks offer better loans. When trying to get a loan, you may find it easier to get one through a local bank rather than a national bank.
The reason for this is because they understand the challenges of local businesses and residents.
- Interest rates are better. When shopping for a high rate for your savings account, checking account or even a CD, you may find that rates are higher when you bank locally.
Local banks often don’t spend a lot of money on advertising. Instead, they use that money to pay higher rates to their customers.
- Customer service is friendlier. National banks have countless customers. It is impossible for the bank to know who you are. As a result, you become just a number. A neighborhood bank will be able to get to know you and your family and change the rules more easily.
A local bank has no corporate headquarters to answer to. The benefit is that they are not as strict with their policies and procedures, which is often to your advantage.
This means you will get more personalized service when you talk to anyone at the bank about any financial concerns you have. Many will take the time to sit down and talk to you like a real person instead of treating you like another account number.
- Rates are lower. Neighborhood banking centers charge lower fees for checking accounts. This includes fees for transactions, use of a debit card, and even with checks.
They must do this in order to compete effectively with other banks. As a result, many customers would rather save money on a day-to-day basis with their bank than have a bank branch in every city in the country.
When you are looking for a new bank to do business with, there are options to consider.
While a national bank advertises heavily, it is not always the best route to go. There are several reasons why it is better to choose local banking over national banking. The customer service alone may be worth it.
However, better interest rates, better loans, and better fees don’t hurt either.