Community Banks vs. Big Banks: What’s the Difference?
Community banks and large banks offer many of the same financial products and services, including bank accounts, personal and business loans, debit and credit cards, etc. However, there are several differences between these two financial institutions. The critical difference between the two banking services providers can be found in the name. A community bank is much more tied to the community it serves and provides personalized, relationship-based banking services.
Here are several things to consider as you compare banks:
Convenience: Choose a bank that’s easy to work with.
Cost: Identify your banking needs and compare fees for the services you need.
Services: Determine what products and services are offered by the bank.
Community: Determine how personalized you want your services to be and if you want to develop a relationship with your bank.
Let’s explore the differences between big banks and local banks, as well as Jarrettsville Federal, in more detail.
|Community Banks||Big Banks|
|Majority owned by members of the community they serve||Owned by shareholders – typically institutional investors|
|Private or Public||Public|
|Small to Medium||Large|
|Their customers are typically members of the local community where the bank is located||Their customers are corporations, SMEs, and individuals (often from more affluent backgrounds)|
|More likely to grant loans to low and moderate-income households||More focused on corporate lending|
|Deep understanding of its community’s financial needs and more willing to fulfill them||Provide broad array of financial products and services|
Advantages of Community Banks
Community banks, like Jarrettsville Federal, tend to be more involved in the local community, participating in community events and getting to know the members of their town or city. Banking customers can readily access the employees at the bank, who work in the community. Decisions on loans are typically made locally, so the approval process is much faster than when working with a loan approval committee in a larger bank. If you are established and settled in a small town or city, a community bank may be more convenient. The bank will be well known by others in your neighborhood and will be able to provide you with friendlier and more personal customer support. Community banks also tend to have lower fees on checking accounts than bigger banks. Your banking needs to drive your choice of banks, but you may feel a sense of satisfaction when working with a local institution. Local banks are part of the local economy, and they often give back. You’re likely to see a local institution’s logo at charity races and other events, signaling that they contributed money or other resources to help make the event a reality.
Advantages of Big Banks
Large banks are generally well-established banking institutions. This allows them to offer a diverse portfolio of financial products. Also, they have flexibility when setting up financial products. For instance, you may have more customizable options when getting a home loan through a larger bank. These banks also typically serve a larger geographic area, so you may be able to keep your bank if you need to move or need access to your bank while traveling. Big banks also have more financial resources for larger loans, making them ideal for business customers. Convenience is a prime factor to think about when deciding on a bank. Big banks have many locations, nationwide and worldwide.
Jarrettsville Federal – A Community Bank To Meet All of Your Needs
Community banks are an excellent option for most banking needs. Just because they’re small doesn’t mean they can’t meet your needs. Some institutions limit their offerings, others outsource services, and some, like Jarrettsville Federal, provide everything you need in-house. It is a community bank that is mutually owned by their depositors. They are just like a credit union, only they pay taxes and there are no stockholders.
You will feel a sense of belonging at Jarrettsville Federal. Jarrettsville Federal Savings and Loan put down roots in the community in 1869 as a strong, stable financial institution. Over the past 150 + years, they have developed relationships that span generations.
Today, Jarrettsville Federal continues to thrive, with checking, savings and loan products that meet their customers’ needs, technology that brings them into the future, and community service that gives back to their customers.
Contact Jarrettsville Federal Bank at 410- 692- 5151 or visit our website. We want to support you with any of your banking needs.