Are you looking to select the best bank for you and your family? Well, you are not alone. Many people try to weigh the pros & cons with regards to determining whether or not to bank at a large commercial financial institution or at a smaller local bank. The purpose of my editorial is to give you some insight on which type of financial institution is the very best for you. I’ve been fortunate to be a part of each type of organizations. Below are the benefits & negative aspects of giant banks & small banks:
Big financial institution advantages:
– You have a bigger product line to select from. You can choose between more than one different checking and savings accounts. Multiple different loan products starting from house loans, automobile loans, student loans, business loans, and credit cards.
– Easier access to accounts
– Better online options (state-of-the-art technology)
– More branches
– FDIC protection
Big bank disadvantages:
– More people to deal with
– Having to care for the “1(800)” numbers
– Lack of relationship banking aspect
– More “product pushing” from financial institution employees
– Potential of dealing with fees
Small financial institution advantages:
– Personable service
– Your bankers recognize you & your financial situation, which makes banking easier.
– Stronger personal & skilled relationship with bank.
– Not having to jump through hoops to get solutions to service-related questions.
– Dealing with the same people for a very long time. Bankers at smaller banks have longer tenure with their company.
Small financial institution disadvantages:
– Lack of product knowledge as a result of the restricted product line smaller financial institution possesses.
– Everyone is aware of your financial situation. This could be a positive or a negative.
– Fewer branches
– Website accessibility issues. Smaller banks lack the budget to put money into cutting-edge technology.
– Fewer choices for other forms of investments
So, you must ask yourself: what do you value most? If credit repair is one of your goals right now, in my opinion would consider the best bank for you is a small local bank. Let’s say you wish to have to waive a bank fee or you had been overdue on a loan payment. You have a better likelihood to get the fees waived at a smaller financial institution as a result of the personal relationship you have with the banker. That is why I would select a smaller community bank compare to the massive mega banks.