With over ten banks and credit unions operating just in Mechanicsburg, PA, and dozens in the greater Central PA area, it can be difficult to narrow down what financial institution will best fit your needs. One of the best pieces of advice is to look for the banks and credit unions dedicated to serving the local community. The largest 20 banks own over 50% of all assets in the U.S. and new online-only banks are popping up every month. They have the budget and marketing pizazz to win over many a customer, but are lacking one of the most important elements in banking – the ability to truly understand the local economy and be invested in that local community. So the next time you’re shopping for a new account or loan, keep these key factors in mind.
Small and mid-sized financial institutions may only control less than 25% of all banking assets, but they make up more than half of all small business lending in the U.S. Large banks control many more assets, but only dedicate 18% of their commercial lending to small businesses. These small business loans help community members start new businesses and create the capital to grow and hire more employees.
Local banks and credit unions are committed to the community in which they are located. The money deposited in that financial institution is recycled throughout the community through lending and other investments, a stark contrast from big banks who funnel that money straight up to wall street. Banking local means that you’re supporting productive investments for your local economy, not speculative wall street trading that only benefits the investors.
By banking locally, you are making an investment in your local economy. If you need a loan, who would you rather go to? A big, New York banker – or a local banker who understands the local economy and your industry? AmeriChoice has been operating in the Mechanicsburg, PA community for over 40 years, and therefore has an intimate understanding of the needs of small business owners and families in the area. Plus, this means that decisions are made faster when there is less bureaucratic red tape to cut through.
A credit union’s board of directors is made up of members of the credit union. There are no far away investors deciding which direction the business should go in. Decisions are made by people within your community.
Local banks and credit unions offer the same services and cutting-edge technology as the big banks, but are proven to have less hidden fees and lower interest rates. For example, this 2016 NCUA report shows that the average interest rate for a 60 month car loan is 4.72% APR at a bank, but only 2.70% APR at a credit union. By banking locally at a credit union, you could save over $1,300 on interest over 60 months with a $25,000 car loan.
Whether you live in Mechanicsburg, Central PA, or anywhere else… when you bank local, you’re not only contributing to the overall health of the community’s economy, you’re receiving loans and accounts at the best rates with less fees. So the next time you’re shopping for a loan or need a savings account for your child, look into banking local. Research your financial institution to see where they are headquartered, and call their branches to see if you can speak to real person, not just an automation. You’ll probably find that banking local isn’t only better for the community, but it’s better for you too!
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