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Updated by Eric Regan on Feb 14, 2017
Eric Regan Eric Regan
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3 Reasons You Should Switch to A Local Bank

“Whether for your mortgage, your day-to-day banking, or your savings and retirements, banks are in the business of customer service,” writes Jacqueline Curtis for Money Crashers. “And, when your bank is no longer giving you what you need, it might be time to reconsider your relationship.”


Why Local?

While many Americans utilize banks almost daily, they may not consider their bank isn’t the best one for them. But lots of Americans are getting fed up with big banks and their associated fees. If you’re still working with a national bank chain, here are some reasons why a smaller local bank could be a better choice:


Better Customer Service

Especially if you’ve had unpleasant customer service experiences with your bank, consider local banks are more likely to provide better in-person customer service instead of an often-frustrating computerized answering service.
Jackson Wise of Kasasa adds: “64% of people surveyed in the Consumer Banking Insights Study believe community banks and credit unions provide better personal service in any kind of interaction — be it face-to-face, over the phone, or online — than big national banks.”


Lower Rates

According to’s Constance Gustke, “Some 63 percent of small banks offer free checking, according to a survey by U.S. PIRG released in November 2012. They also have lower overdraft fees and balance requirements for avoiding checking fees. Some small banks are even reimbursing several, if not all, surcharges at out-of-network ATMs, U.S. PIRG says.”
Taking these rates directly to your current bank and asking for a better deal might be a solution, but your bank might refuse or jack rates back up once some time has passed.


Invest in your Community and Causes you Believe In

Many big banks spend their massive profits supporting various causes that you may or may not support. From legislative regulation policy to environmental protection, numerous major banks have been known to donate millions to these causes without consulting the Americans whose money they’ve profited from.
Local banks are also more likely to provide small business loans.
“More than half of all small business loans under $1 million come from community banks, according to Independent Community Bankers of America,” Wise writes. “When you bank with a community bank or credit union, your money helps support and grow your local economy, made up of small businesses that are the backbone of the nation’s economy, and owned and operated by people who are your friends and neighbors.”