Why I Choose to Bank with a Major Institution Rather Than a Local Credit Union or Community Bank

When it comes to choosing a financial institution, there is no one-size-fits-all answer, and my personal experience reflects this. While I accept that other individuals might prefer to bank with a local credit union or community bank, my own preferences and requirements are different. In this article, I will explain why I have chosen to bank with a major financial institution that offers a range of services, including checking and savings accounts, and time deposits, with online access and insurance coverage.

My Financial Needs and Preferences

For my personal financial needs, any financial institution that provides checking, savings, and time deposit accounts with online access, and that is insured by either the Federal Deposit Insurance Corporation (FDIC) or the Financial Services Loan Insurer (FSLIC), is sufficient. The level of service and the specific savings accounts available are not as crucial as having a reliable and insured financial institution to manage my day-to-day transactions and long-term savings.

Personal Experience with Major Banks vs. Local Credit Unions

My history with major banks spans decades, and over the years, I have had the opportunity to witness the rise and changes in the financial landscape, particularly with community banks and credit unions. Decades ago, I had a friendly and localized experience with a small bank that was conveniently located just across from my condo. Unfortunately, this establishment was eventually acquired by a larger bank, which, over time, became part of the well-known financial giant, Chase. I have been content with Chase for my primary checking and a small savings account. However, for my main savings, I have opted for a high-yield account at Viobank, which offers a significantly higher interest rate than most traditional brick-and-mortar banks.

Understanding and Navigating Banking Regulations

While some individuals might opt for local credit unions or community banks due to the smaller and more personalized service, my decision has been shaped by my understanding of the regulatory requirements that govern these institutions. As I mentioned, a bank must have assets exceeding ￡25 million to use the word "bank." This threshold ensures that the institution has the resources to provide a wide range of services and meet the needs of a larger customer base. Although I am not familiar with the current precise figure, it gives an indication of the scale and stability required for a financial institution to operate under the term "bank."

Despite the existence of local credit unions and community banks, I have encountered difficulties in locating a nearby credit union, and I am aware that community banks typically have a higher asset requirement before they can be legally referred to as a bank. These factors have influenced my decision to stick with a major financial institution that consistently meets my needs and offers competitive financial services.

Conclusion

Ultimately, the choice of a financial institution is deeply personal and depends on one's unique circumstances. For me, the decision to bank with a major institution has been driven by consistency, reliability, and access to a broader range of financial services, including online banking and high-yield savings accounts. This choice is not merely for personal banking; it is also a practical and strategic decision to ensure that my financial needs are met in a way that aligns with my personal fiscal goals and preferences.