| One of life's enduring questions is whether bigger | | | | with. Many people appreciated that old fashion luxury |
| means better. That is much a matter of personal | | | | of knowing their banker and being able to speak with |
| opinion and specific subjects. As a kid, a bigger ice | | | | him or her directly over the phone. Many local, small |
| cream cone was certainly better, even if you didn't | | | | town banks are still this way. |
| finish it or it gave you a stomach ache. Many people | | | | If you've ever tried to clear up a banking problem over |
| these days seem to think that a bigger car is better, at | | | | the phone while speaking to a customer service |
| least until gas prices rise above $5 a gallon. The | | | | representative from India, you will quickly come to |
| lesson here is that almost anything can at times be | | | | appreciate the convenience of being able to go to a |
| better if bigger and at other times be better if smaller. | | | | local bank and speak face to face with a bank |
| Banks are no exception. | | | | representative. Some things are fine over the phone, |
| When it comes to banking, choosing the institution that | | | | but major financial problems may not be one of them. |
| is right for you is a highly personal matter. You need | | | | It's also usually easier to secure a loan at a good rate |
| to first decide your priorities an purpose for needing | | | | through a local bank. This is especially true if you |
| the bank. Once you carefully analyze the situation, | | | | have been a customer for several years and have |
| you can decide if a big bank or a small bank is right for | | | | established your reputation. Even if you have some |
| you. Both have their place in the finance industry. | | | | items on your credit record that aren't stellar, small |
| Big banks are often the better choice for large | | | | banks are usually willing to work with you. With a |
| investors. If you move a lot of money, big banks are | | | | large bank, even if you have been with them for 20 |
| better leveraged and more prepared to work with | | | | years, you are still just a number made up of your |
| such transactions. This is especially important if you | | | | credit score. |
| have investments or financial interests overseas. | | | | Often small banks also offer better rates on simple |
| Small banks will of course handle these transactions | | | | investment instruments like CDs and savings |
| for you, but they will likely secure the help of a big | | | | accounts. Large banks often feel they are just losing |
| bank to do so. This will cost them and those costs | | | | money with such nuisance accounts and therefore |
| are usually passed along to you. | | | | offer lower rates. Small banks want your business |
| Customers that do business in several different cities | | | | and are willing to pay for it. |
| or states often find the convenience of branch | | | | Many people feel that big banks are more secure than |
| locations to be a plus. Often it's easier to deal with a | | | | little ones. This may be the case since a large |
| local branch than having to explain things to a small | | | | institution may be more diversified and have the |
| regional bank 1000 miles away. | | | | assets to weather a storm. But on the flip side, large |
| If most of your banking needs are local and consist | | | | banks are more notorious for taking risks than their |
| mainly of a checking, savings and maybe a money | | | | more conservative small town cousins. As we have |
| market or other investment account, a small local bank | | | | recently seen, these risk taking measures can lead to |
| might offer you a better service. Small banks are | | | | the collapse of even the largest of mega investment |
| much more personalized and are often easier to deal | | | | banks. |