Financial Peace of Mind in Uncertain Times

As the use of digital banking services increases, it seems the number of brick-and-mortar branches being shuttered by financial institutions keeps increasing. According to FDIC data, from 2018 to 2022, 1,646 branches have closed per year on average.

The convenience of being to do so much of one’s day-to-day banking electronically helps many of us save time as we do routine banking tasks. While increased availability of digital tools can reduce the frequency with which a person has to visit a branch, a physical branch location and a bank’s local presence still has value.

Though many routine banking tasks can be done online, not everyone has access to the technology needed. There are services available in-person that just can’t be completed online, such as storing valuables in a safe deposit box, withdrawing cash from your account, or having a form notarized.

When larger banks are closing branches in your community, consider the reassuring presence of the community financial institutions that have been a part of the fabric of your town for decades.

You might not realize it, but banking locally has a tremendous positive impact on the success of your community. When you deposit your money into a local bank, those funds stay in the area to help fund loans for small businesses and homeowners, and contributions to nonprofits. These investments in these neighborhoods we call home help businesses grow, and local economies thrive.

A local financial institution is more likely to make its lending decision locally — which means whether you get approved for a loan or not is determined by someone locally who understands the community, and not some faceless agent at a distant headquarters office.

In one in five US counties, a community bank is the ONLY banking presence. The ongoing consolidation of bank branches is creating “banking deserts” — communities without access to a financial institution within ten miles. Studies have shown that people who live in these communities are more likely to use expensive non-traditional lending options, such as payday loans which often have high fees.

A local bank plays a vital role in a community’s wellbeing, and when bigger banks leave, take a look at the local banks who stay.

Bauer Financial, an independent financial rating firm, rates financial institutions using a star-system to measure how well a bank or credit union is prepared to serve its community and withstand economic shifts. The scale ranges from zero (the lowest score) to five stars (superior). When banking with a financial institution with a higher rating, you can be confident your money is with a bank built on trust and experience.

When things feel uncertain, seeing the FDIC logo on your bank’s website or advertisements can bring a bit of relief. When your bank is a member of the FDIC, it means your deposits are automatically insured to at least $250,000. FDIC insurance offers peace of mind that your money is protected.

There are a variety of banking tools and services you can find at many banks that can help you feel in control of your finances, even during uncertainty. Your online or mobile banking platform may have budgeting tools to help you see the big picture of your dollars, and you can often set up recurring automatic transfers from your checking account to a savings account to help you seamlessly and easily tuck away money for a rainy day.

If you’re not sure what’s available for you at your bank, stop by your local branch today. They can tell you about services that are available to help you save smartly and bank simply.

Though the economy may feel unpredictable right now, your bank may be able to help you find relief. Consider banking locally with a community bank for personalized service, customer care from someone just as invested in your community as you are!