There are many reasons why it’s cool to switch from a large national bank to a community bank.

For one thing, you can get better deposit rates, and many community banks require a lower minimum deposit to open an account and avoid fees. Local banks are more likely to offer free checking accounts with direct deposit as well. In fact, over 60 percent of community banks provide free checking accounts, according to a study from 2012.

As an added bonus, local banks offer the same technology perks you would get from larger banks, such as mobile and online banking.

Friendly Banking Experience

• Community banks offer personal service. Some community banks are so personal that you can talk directly to the bank president. This is in stark contrast to certain large institutions that actually charge customers if they use tellers for some activities.
• A community bank does more to compete for your business, and these institutions are aware of the competition. As a result, you get lower fees and higher rates on your deposit accounts. Simply compare the CD or savings account interest rates offered by large national banks to your local community bank.
• Community banks focus more on educating you on money matter and promoting financial literacy. They work to identify the best products and services for you, rather than simply selling you to meet their sales quotas.
• Further, you’ll be placing your money in a bank that safeguards your money. You’ll have peace of mind knowing that your hard-earned dollars are not being used for risky investment deals on Wall Street. Yes … community banks are FDIC insured.

Better Access to Credit and Loans

• You stand a higher chance of getting a good loan rate by dealing with community banks, regardless of your credit standing. As an example, you can get a low fixed rate on a secured credit card, if you have bad credit, or lower home loan rates with community banks.
• Most community banks portfolio their loans, which means that your loan will not be sold once it closes. For some loan programs – such as loans for apartment buildings or multifamily loans – community banks offer lower rates and longer terms (such as 40 year terms) because they portfolio their loans.
• And by placing funds in a community bank, you play a vital role in the success of your local economy. Community banks are involved in their community. They provide workshops on financial literacy. Your deposit supports community development which adds jobs and commerce to the local economy.

So consider opening an account with a community bank today!