Key takeaways
- Large, institutional banks often have an impersonal way of dealing with people. In addition, they charge fees for an ongoing litany of things like ATM use, overdrafts, low balance, multiple accounts, and more.
- You have other choices when it comes to banking: community banks, credit unions, and online banks.
- These smaller banks deal with people on a much more personal level; and, since they cost less to run, they tend to charge far less in fees.
- The type of bank you choose depends on your personal lifestyle and your preferences.
- Consider these other options if you’re fed up with unnecessary paperwork, nitpicky fees, and impersonal bank associates.
Recently, I was trying to conduct a particular transaction with a very large bank. They made me provide well above the amount of information necessary for the type of loan I wanted. I got so sick of the process that I went to a community bank instead and got it done very easily.
The point is that there’s a big difference between the various banks out there. Take these two, for instance: large institutional banks and smaller community banks. You also have credit unions and online banks. All of these have different things to offer—some better than others.
Depending on your particular situation and individual preferences, one may work better for you than the others. If you’re a person who likes tangible things, you may actually want to work with a brick and mortar bank. If you find it easier not to deal with the in-person experience, you might consider doing everything online. Today, most banks—even the large ones—offer a way to do almost everything online.
But there’s another side to all of this and that’s the fees. There are still many banks out there that charge for absolutely everything. They have ATM fees, overdraft fees, low balance fees, multiple account fees. I could keep listing them off, but you can look at it for yourself. It’s in the small print and there are countless things they charge you for. It’s so irritating, it makes most people want to run out screaming.
If you’re like that, you may want to consider these online banks, or even a community bank where they tend not to charge all of these unnecessary fees. Additionally, if you like keeping things simple and taking care of business with a smartphone, or other device, you can arrange to have overdraft alerts in the app settings. In fact, you can set a number of alerts to monitor your spending habits and anything else going on in your accounts. The fact that you can do all this online makes it very easy.
Because these smaller community banks, credit unions, and online banks cost less to run, they tend to have fewer fees, which makes it much more cost effective for you. The type you choose really depends on how you prefer to run your life.
We’ve found that more people are leaving these large institutional banks simply because they don’t typically deal with people on a personal basis. Often, they see you as an account number and not a person. That’s why more people are choosing smaller community banks and credit unions, or just doing all their banking with an online bank.
If you’re feeling fed up with all of the fees and charges, you might consider one of these other options. Smaller banks typically work with people on a personal level and have far fewer fees. Check it out because you might get a better deal and have better customer service. Until next time, enjoy.
Gary