Where you choose to do your banking plays a huge role in your overall financial picture. Banks and credit unions in your area can be a good choice whether you are a small business owner or just want to open a simple checking account. Local bank locations and local bank branches are often the cornerstones of your hometown, so it’s time to find the best one both for you and in your area.
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How to find a community bank in 3 steps
Many local banks can be found through the Independent Community Bankers of America, creating an environment for community banks to flourish. Other than this, you can start your own hunt in your neighborhood by doing the following:
Step 1: Get a list of geographically close banks.
Step 2: Research what your local bank is doing for your community.
Step 3: Choose a bank with the right accounts for you.
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Step 1: Get a list of geographically close banks
In this day and age, banking savvy is a must, whether that means finding a bank near you or at work, the first step involves knowing all your options. Data for each bank is publicly available, as each branch must report the location of their deposits along with other legally required information.
A helpful way to get a list of geographic locations of banks near you is to visit the Independent Community Bankers of America website and enter the zip code of the area in which you want to bank. Here you can also access government data on how the money is deposited and distributed among the community.
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Step 2: Research what your local bank is doing for your community
A bank’s location can play a key role not only in the convenience factor but also in its influence within the community, town or city that provides IT services. The social, economic and environmental impact it has has been attributed to several factors, including, but not limited to, the following:
Loans for things like businesses, housing, construction or farms.
What percentage of the bank’s total dollars is invested in the community.
Public work loans, projects and securities.
Other monitoring by community banks.
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Step 3: Choose a bank with the right accounts for you
Whether it’s online banking, a high-yield savings account, or you’re looking for a loan to start a small business, make sure the bank you choose has the right accounts to meet your needs. List what your bank needs to cover for your unique financial situation so you’re prepared when you open an account with your new community bank. All community banks cover the basics, such as checking or savings accounts, but if you need more, be sure to do your research first.
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Community banks get most of their core deposits from within the communities they serve and focus primarily on providing traditional banking services and reinvesting money locally, for example by providing loans to local businesses. When you do business with a local community bank, it feels more like a relationship than a transaction. Finding the best branch near you can improve your entire banking experience.
Here are the answers to some of the most frequently asked questions about local banks.
How do you find a local bank?
A helpful way to find a local bank is to visit the Independent Community Bankers of America website. Here you can enter the zip code of the area in which you want to bank.
Which banks are considered local banks?
Here are some examples of bank types that are considered local banks:
– Funds from Community Development Financial Institutions (CDFIs)
FDIC-insured minority or managed banks
– Credit unions owned or controlled by minorities
Is it better to use a local bank?
While it depends on your banking needs, local banks get most of their core deposits from the community they serve and focus primarily on providing traditional banking services and reinvesting money locally.
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Is Wells Fargo a local bank?
No, while there may be Wells Fargo affiliates in your area, it is an American multinational financial services company with headquarters in San Francisco and Manhattan, as well as management offices in the United States and internationally.