When to Make the Switch to a Smaller Financial Institution
Have you ever thought about switching to a smaller financial institution? You’re not alone. According to the 2015 Consumer Banking Report from Kasasa, 66% of Americans would rather bank at a small bank or credit union. Why? Let’s take a look at some of the top reasons people are making the switch and when it might be time for you to try something smaller, too.
Small banks and credit unions are known nationally for providing superior customer service. Credit unions in particular are widely praised for their ability to go above and beyond for their members. Because these institutions are physically smaller and tend to serve a regional population or specific group, they are able to offer more time and care to individual cases. If you feel you’re underserved at your big bank or that it’s lacking in customer service, it might be time to make the switch.
One huge factor many people don’t recognize is that smaller financial institutions offer the same suite of financial services as every other bank. They offer loans, savings, and checking services—but with a more personalized approach. And more often than not, smaller banking institutions are just as technologically savvy as their big bank counterparts. Credit unions and local banks have mobile applications, online bill pay, and more, meaning these smaller options are just as easily accessible for members, even as they travel. Did you realize a small banking institution could offer you everything your megabank could? If not, it might be time to make the switch!
Possibly the most attractive reason to switch from a megabank to a credit union or local bank is the smaller amount of fees. Are you tired of high interest rates and that fee your bank charges every time you overdraw from your account? It’s time to make the switch! Credit unions and small banks offer free checking and much lower interest rates on loans. If that isn’t the most resounding reason to make the switch, then what is? Saving money, especially over the life of a loan or as a young person building wealth, is essential!
When you switch from a megabank to a small financial institution, you are not only setting yourself up for a healthy financial future, but you are also investing in your community. Because so many credit unions and small banks are locally owned, and they serve individuals and businesses in their geographic region, by default, they are pumping money back into their community. Your community.
Are you convinced, yet? Joining a small banking institution is not only a smart financial move, but it also can be an all-around rewarding experience.