Personal Banking: Big v. Small

Big_banksThere are two types of banks on the size spectrum, and of course everything in between.  The large banks we hear about in TV advertising and national media are all of the banks I would consider to be the Big Banks.  They are Citibank, JP Morgan/Chase, Bank of America, Wells Fargo, Compass and others.  These banks are designed to serve large businesses and corporations with mega loans, large overnight deposits, mortgage servicing, large wire transfers, currency exchange and international deals to name a few.

Banking institutions at the other end of the spectrum are the community banks and credit unions.  These smaller institutions are generally privately owned by an individual or group of investors from the community.  Credit Unions are, in fact, a NON-PROFIT banking institution owned by its members and run by a board of directors elected by the share-holder members. EECU Cutting Credit unions offer the same type of government insurance and protection through the federal NCUA as a bank has through the FDIC.  Assets are just as safe in a credit union as in a bank, and regulation is just as tough.

The big difference I see relevant to the common customer is the level of service and expense to the individual account owner.  Banks are in business to make a profit.  I am an advocate of the non-profit credit unions for most individual banking.  Credit unions generally offer lower loan interest rates and less expensive fees.  They budget to make a net gain on their operations so that they have the resources to continue building, growing, and expanding, but the exorbitant and obscene profits gained by Big Banks are not desirable to a credit union and would eventually need to be returned to the shareholder members as dividends.

In recent years, the larger community credit unions have caught up with the banks in their service offerings to include accessible and free ATM’s, low cost credit and debit cards, on-line bill-pay, transfers, and mobile deposits. Many even offer excellent service and loans to small business accounts. Loan rates for credit cards, auto loans and lines of credit are almost always less at a credit union.  Interest paid on deposits is almost always more.  If you insist on a bank, consider a locally owned bank so that profits and assets remain in the community and competition will keep the costs for the consumer at a reasonable level.

For the individual private banking consumer, it would rarely make sense to me to use one of the major banks for a checking and savings account, auto loan or personal signature loan.  The same services are available through a credit union for less expense and much more personal service.  I know my banker at my credit union and feel comfortable any time just walking in with a question.  It sure makes life easier when I have an issue or a need that requires an understanding banker.

Give this some thought before you make your next banking change.

Paraclete Ventures LLC serves Daily Money Management clients in Arlington, Mansfield and Tarrant County, Texas.  Click on one of the menu items above for more information about us and our services.




11 Responses to “Personal Banking: Big v. Small”

  1. Auto Forex Income

    Greetings! Very helpful advice within this article!
    It is the little changes that make the most important changes.
    Many thanks for sharing!

  2. Kent Couch

    Yes, we hired The Labor Shed. There should be a link to them in the bottom right of each page. Thanks! kent


    Everything is very open with a very clear explanation of the challenges.
    It was truly informative. Your website is extremely helpful.
    Many thanks for sharing!

  4. achat duflot

    I like the helpful information you provide
    in your articles. I’ll bookmark your weblog and check again here frequently.
    I’m quite sure I will learn plenty of new stuff right here!

    Best of luck for the next!

  5. site de rencontre sexe gratuit

    There’s certainly a lot to learn about this subject. I love all the points you’ve made.

  6. petites annonces coquines

    Right here is the perfect web site for everyone who wants to find out about this topic.
    You understand so much its almost hard to argue with you (not that I really will need to…HaHa).
    You certainly put a brand new spin on a subject
    which has been discussed for ages. Great stuff, just excellent!

  7. Womens Parajumpers Long Bear

    I truly appreciate this post. I’ve been looking everywhere for this! Thank goodness I identified it on Bing. You might have created my day! Thx once again!

  8. informative post

    I must say i appreciate you making the effort to share this information with us.

  9. our website

    I just want to say I’m newbie to blogging and site-building and certainly loved this web page. Likely I’m want to bookmark your site . You absolutely have superb well written articles. With thanks for sharing your webpage.

  10. holder sticky auxiliary

    Heya i’m for the first time here. I found this board
    and I find It truly useful & it helped me out a
    lot. I’m hoping to provide something back and aid others such as you aided me.

  11. Longchamps 2014

    Terrific job here. I seriously enjoyed what you had to say. Keep going because you absolutely bring a new voice to this subject. Not many people would say what youve said and still make it interesting. Well, at least Im interested. Cant wait to see more of this from you.

Comments are closed.