You might wonder whether it’s better to deal with a small or big bank. These two types of financial institutions offer different services. However, they share several essential qualities. Here’s what you need to know.
Credit unions
Banks and credit unions both offer financial products and services. However, while banks are for-profit enterprises, credit unions are nonprofit institutions owned by their members. Despite this similarity, there are differences as well. Generally, banks offer more services and products than credit unions. They also typically have more resources and can handle larger accounts better.
While a bank in Wake Forest and credit unions provide personal services, credit unions may offer better rates, loans, and services. In addition, they tend to have lower fees than banks. Some credit unions do not charge any fees at all. Lastly, banks offer more convenient services and modern technology. For example, many credit unions offer mobile banking and online mobile apps, while smaller institutions often lack these features.
The primary difference between a bank and a credit union is how the business operates. Both institutions offer banking products and services, but credit unions are owned by their members, not investors. Because of this, they charge lower fees and offer better interest rates. Credit unions are also more community-focused, with members working together to improve the quality of services.
Community banks
If you are looking for a bank in your area, there are several different types. One type is community-owned and focuses on small business lending. Community banks provide personal services and are more flexible than big banks. They may even be less formal in their loan approval processes. In addition, smaller banks better understand the community and its economy. That means they are more likely to be familiar with your needs.
Another advantage for community banks is that they can offer more competitive interest rates. You can typically find higher savings account and CD rates at community banks. Furthermore, since community banks focus on building relationships with the local community, they may be less formal and more flexible in their processes. That means you get better value for your money.
Community banks may seem small and insignificant compared to big banks, but their small size makes them better able to cater to local needs. In addition, the FDIC insures nearly all community banks and guarantees their deposits up to $250,000 if a bank fails. In a recent Federal Reserve study, 79 percent of community bank small-business customers were satisfied with their banking experience. This is 12 percent higher than the national average.
Megabanks
There are significant differences between megabanks and smaller community banks regarding customer service. While community banks focus on the needs of local communities, megabanks concentrate on profit. As a result, they typically charge higher fees for standard services and have little or no personal touch. In many ways, this is counterproductive to local businesses’ efforts to grow and thrive.
Megabanks often have broader networks, including ATMs and branch locations in major metropolitan areas. This helps people manage their money even when they’re traveling. In addition, multi-state branches are helpful for businesses with multiple locations. Megabanks also offer more services for small businesses, including online banking, business checking, and savings.
While megabanks offer a large selection of products and services, many local banks are better suited to individual needs. As a result, they can provide better service and lower fees than megabanks. In addition, community banks often offer free accounts and relationship-based policies.
Regional banks
While big banks often provide the convenience of online banking, small banks offer more personalized service and local expertise. Small banks may be behind the national giants regarding innovative digital banking tools, but they still provide the customized service that small business owners need and deserve. Regional banks can offer the best of both worlds.
Regional banks are mid-sized financial institutions with assets of between $10 billion and $100 billion. While they are smaller than community banks, regional banks offer many of the same services as larger national banks, including investment banking and wealth management. In addition, regional banks offer smaller-scale services that larger national banks cannot provide.
When choosing a bank in Wake Forest, you should consider several factors, including lending options, interest rates, and consumer ratings. You may also want to consider the banker who will process your mortgage.