What is a Mutual Bank?
Don’t feel bad if you don’t know. A recent survey by the American Bankers Association’s Banking Journal and Morning Consult found that only 5% of U.S. adults are familiar with mutual banks. 18% said they were somewhat familiar, and more than 75% were mostly or completely unfamiliar with the concept.
A mutual bank has a unique ownership. It is actually owned by the depositors. There are no stockholders. Therefore, it is organized for the economic well-being of its customers. Since it has no stockholders, it is governed in the interest of the broader community and the depositors. Decisions are made based on what is best for customers of the bank rather than the pressure of satisfying stockholders’ value.
Credit unions are member owned too, but do not pay taxes. Their argument for not paying taxes includes pointing out that banks are owned by stockholders; and therefore, decisions are often made to please stockholders rather than customers. But mutual banks that are owned by their depositors much like credit unions are. The mutual banks have somehow found a way to not only thrive but also support their communities while paying taxes.
Once consumers learn that mutual banks have this unique ownership and commitment to the communities they serve while offering the same products and services of stock owned banks, their view of mutual banks favorability increases from only 20% up to 52%. When the details are known, many said they would likely choose a mutual when looking for a bank.
Did you know Jarrettsville Federal is a mutual bank?
There are not many in Maryland, but for over 150 years, since being established to serve their community in 1869, Jarrettsville Federal has been a “true” community bank that serves their customers and their community, not stockholders.
In fact, last year, Jarrettsville Federal donated 10% of their income to charitable organizations in the community they serve. They did this while providing competitive interest rates on deposits, low rates on mortgage and commercial loans and cutting-edge technology. Their mobile banking solution is second-to-none allowing customers to transact business on any mobile device, including depositing checks, without having to go to the bank. They also have an online mortgage application and will soon have online account opening.
Something else to remember. Jarrettsville Federal makes their decisions right here. This can especially be helpful during these uncertain times with the Coronavirus (COVID-19) epidemic. If customers need help, the solution can come quickly and locally. It does not take a call to someone located out of state that is probably not familiar with the situation in your community. The resolution will come much more quickly and in a more personal manner. Each situation is reviewed on a case-by-case basis so the most effective outcome can be accomplished even if it does not fit in the “box” like it may have to with a large national bank.
So, if you would like to bank with a financial institution that supports your community and where you can have ownership, open your account at Jarrettsville Federal today. You will not only be helping yourself but your neighbors, too.