Three Reasons Why Your Money is Safe with Community Banks (2024)

FAQs

Three Reasons Why Your Money is Safe with Community Banks? ›

You may be worried that if you opt for a community bank, your money will be at risk, since these banks don't have the same vast financial resources as larger banks. But actually, keeping your money at a community bank is generally a perfectly safe option. And doing so could really work to your benefit.

You may be worried that if you opt for a community bank, your money will be at risk, since these banks don't have the same vast financial resources as larger banks. But actually, keeping your money at a community bank is generally a perfectly safe option. And doing so could really work to your benefit.

When compared to some larger banks, many community banks charge fewer fees to small businesses. Community banks often make fee structures simple, easy to plan and budget and work to maximize your cash flow. While community banks also charge fees, they generally cost less than larger institutions.

As long as your deposit accounts are at banks or credit unions that are federally insured and your balances are within the insurance limits, your money is safe. Banks are a reliable place to keep your money protected from theft, loss and natural disasters. Cash is usually safer in a bank than it is outside of a bank.

Both SIPC and FDIC insurance protect your assets in the event of a failure at member institutions. The biggest difference is that FDIC coverage protects your bank deposits and assets, while SIPC coverage protects your securities with a brokerage firm.

Community banks in particular may be vulnerable to deposit outflows because they are more dependent on deposit funding than larger banks—due, in part, to their limited ability to access broader funding markets.

Opening a bank account can be one of the most important steps you take toward reaching your financial goals. Why? Because putting your money in an FDIC-insured bank account can offer you financial safety, easy access to your funds, savings from check-cashing fees, and overall financial peace of mind.

Community banks specialize in relationships, not transactions. This is key, as relationships are one of the most important contributors to any community's success. The stronger the relationship between lender and borrower, the more economic efficiencies increase, and the community grows accordingly.

The Key to Keeping Cash at Home Is Protecting It

Having emergency cash in your home might be a good idea, but using a safe to protect your cash is excellent. Safes can help to cover more than just your cash. You certainly have essential documents to protect, such as your birth certificate and Social Security card.

Which bank is the safest? ›

JPMorgan Chase, the financial institution that owns Chase Bank, topped our experts' list because it's designated as the world's most systemically important bank on the 2023 G-SIB list. This designation means it has the highest loss absorbency requirements of any bank, providing more protection against financial crisis.

The FSCS protects 100% of the first £85,000 you have saved, per UK-regulated financial institution (not per account).

Interest-earning accounts are generally low-risk compared to investments such as stocks. Savings accounts, CDs, money market funds, treasury bills, and bonds are options for investors.

In the traditional sense, checking and savings accounts are both incredibly safe places to keep your money. The National Credit Union Administration (NCUA) automatically guarantees accounts up to $250,000 for each member of a federally insured credit union.

Fewer branches and ATMs: Unlike national banks, you're less likely to have access to a branch when traveling, and the network of ATMs may be limited.

The surge in interest rates, a consequence of the Federal Reserve's efforts to curb inflation, has created a challenging environment for community banks. Consumer prices rose by 3.7% from Sept. 2022 to Sept. 2023, prompting multiple adjustments in the Federal Funds rate.

Higher Quality Service: Smaller banks tend to have less employee turnover than larger institutions. Employees at community banks form deeper relationships with their customers, leading to higher quality service and flexible decision making.

Yes, Centier, a Community Bank, is Safeguarded by the FDIC

In fact, the FDIC covers banks, big and small.