As a financial advisor for well over 10 years, I often come across young singles and couples asking me for advice on choosing a bank. I understand that when it’s your first time opening an account with a bank, and engaging in the consequent loans and mortgages you plan to take, the decision can be overwhelming. Slight differences in services, rates, and bank products are enough to confuse any sane person. However, I personally believe that a community bank in Knoxville or any other area should be the preferred choice and here is why I suggest that:
Lower Fees and Better Service
Larger banks continue to adhere to stricter financial regulations with each passing year, which means the extent of the burden falls on the consumer’s shoulders with lower benefits and higher fees. On the contrary, community banks provide all the services that you expect from your financial institution and often at a lower cost. Customer service is typically a distinctly different experience at the community bank level. If you do a quick check on average fees of both types of banks, you’ll find that your local community bank will win nearly every argument. They also offer better interest rates on saving on average as well as better loan terms. When relationship matters, community banks speak on a different level. So why would you not want that?
Extends Local Decision Making
How many times have you had to face rejection for loan approval from a big bank because you could not meet their extensive list of requirements or cut off-threshold for loan approval? These rejections are common by big banks because they don’t know you personally and have countless s other customers to serve. In your local community bank, people who live in the community and know you make key decisions. This enhances the trust element as well as they understand local needs and have face-to-face interactions with customers. There are less chances of rejection.
Supports the Local Community of Which You Are a Part
If you care about your community that is a strong reason to choose a community bank because any deposit that you make go towards supporting the local economy. The 1977 Community Reinvestment Act requires banks to extend loans to borrowers who are in need in the company. In contrast to this, no big bank has to cater to the local community to stay in business and often ignore small towns.
Larger banks usually pose a risk to the financial system by investing and trading in the stock profit to make more money, thus providing no social or economic value. When such investments go sour, they become bad news for the entire comminuty. By choosing a community bank in Knoxville you can ensure that you are given the best rates, contribute in your community development and be part of a secure banking structure.
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