Recently I’ve been talking with my clients and friends about this movement we heard about which has many Americans moving their banking business to small, local banks from large, Corporate Banks. I think the movement started as a sort of revenge movement against banks too big to fail. But it has grown some legs, and I’d like to share with you one of the best reasons for considering moving your money.
Whenever I talk with our local banks or Credit Unions, one of the first things they bring up is how much money they pour into the local economy through personal and small business loans. When I talk with huge Corporate banks, they don’t say anything about the local economy. Usually, the talk revolves around their business banking fees. No kidding.
So what?
Here’s the what. When you bank locally, your money stays local, mostly.
When you bank with a giant too big to fail bank, the chances that your money is staying local are slim. When you bank locally, your money is invested back into your community, back into small businesses that create good paying jobs and keep the local economy humming. When you bank with a huge corporation, your money is invested in huge corporate investments, like international building projects, overseas oil ventures, and god-only-knows what else or where. When you bank locally, you help your local economy, and that helps you. When you bank with a corporate giant, you bank nationally and internationally, and that usually helps everyone else but you and your local economy.
If you want your local economy to have the best opportunity available, keep your money at a small, local bank. Ω



4 Comments







Well said. The more money that stays local, the better for your town. My dad, who grew up in Georgia, always said that the reason the South was poor so long was that the richest people all banked outside Georgia.
I finally got around to finishing my exodus out of Bank of America last week. It was a complex transition because there were business accounts involved.
I found a nice, small community-oriented bank. In Japan.
Nice article.
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Things get real at The Pluto Chronicles.
I moved to a credit union several years ago after two major regional banks in a row stole from me. I mean that literally, as in they stole money out of my accounts, not figuratively like high fees or something.
Since then, no major problems. Banking’s dull with a credit union, in a good way. You get the same deposit insurance, though through the NCUA instead of the FDIC, you can do your banking online, use a debit card, ATMs, there’s no downside to speak of. I heartily recommend that everyone make the switch.
I moved our savings to local credit unions decades ago. All we have at BofA are our checking accounts which I structured so that we pay no fees. Also we use their debit cards so we have ready access to cash anywhere in the US w/o ATM charges. The local credit unions do have debit cards of course but their ATM networks are quite limited & I have a strong aversion to paying bank fees of any sort to any financial institution!