Alternatives to Large Banks

With the trouble in large banks, many people are re-evaluating their banking needs and looking for alternatives.  Local banks are looking more attractive–particularly ones that have been conservative in their investments and aren’t suffering from the problems larger banks are running into.  Local banks also can be more in touch with local needs and have services that cater better to what you need in your community.

Credit unions are another option.  In the past credit unions were designed to service a particular group or organization, so membership was limited.  A good percentage of credit unions in operation today were founded to help their community so membership is open. Credit unions operate a bit like a Co-Op so they are actually owned by the people who put their money into the bank.  As a result they often have interest rates that are higher than other banks that need to make a profit for the owners.

Online banks are a third option.  While you may sacrifice the personal service of a local bank or credit union, an online bank may offer a lot in terms of online services and higher interest rates.  For example, local banks may have a more difficult time offering free bill pay services while an online bank may have a business plan that requires it to get as many people as possible to use bill pay in order to keep their expenses low and avoid hand sorting physical checks.

Related posts:

1. Benefits of using Credit Cards
2. Personal Health Insurance