Why it's Better to Use a Small Bank (2024)

There are tons of banks out there, each competing for your business. How do you know who you can trust with your finances? Here are some reasons why big banks just don’t stack up against small, local banks.

Personal Service

Your business is always personal. Your bank should be, too. Small banks are relational at their core, so they actually know you. They probably even know your entire family. And, since many small banks are also small businesses, they understand what other small businesses need, as well as what helps them succeed. Big banks, on the other hand, won’t necessarily give you the same great service.

Ease the Fees

At a small bank, you’re more likely to receive the same services you expect from a bank at considerably lower costs. Average account fees tend to be lower at small banks than at bigger institutions. Smaller banks, on average, offer higher rates on interest-bearing checking accounts, savings, and CDs. Also, smaller institutions provide better terms on credit cards and small business loans. Small banks have lower balance requirements and overdraft fees.

Keep it Local

Small, local banks invest money back into your community, which provides jobs and improves the economy in your area. Not only are smaller banks more likely to give small businesses loans, but they love to support local businesses. Big banks reinvest your money into Wall Street, essentially using your money for their benefit.

Small banks have signature personal service, which can’t be beaten by impersonal big banks. Not only that, but smaller financial institutions offer lower fees and higher savings interest. And, at the end of the day, you can rest assured your money will be helping others in your community in order to create a vibrant local economy. The choice is yours.

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