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

April 25, 2023

With the recent news of failures at risky, big banks, you may be wondering if your money is truly safe. We're here to share that when you choose to #BankLocally with a community bank, your money is in the right hands — and more importantly, in the hands of a community banker who cares about you and your financial well-being for the long haul.

1. Community banks have consistently served their communities.

Community banks have been a reliable banking option for Americans for more than a century. In fact, in one in three U.S. counties, community banks make up the only physical banking presence.

From recessions to world-altering events, community banks have weathered every economic cycle, and their value is proven in the ups and downs. For example, during the pandemic, community banks sprang into action to help small businesses and members of the community with Paycheck Protection Program loans and other financial support. As small businesses themselves, community banks have a personal understanding of the unique issues facing the community they serve and provide personalized care and attention.

Community banks have demonstrated time and time again that they're here for you through it all.

2. Your community banker is accessible and ready to help.

Having access to your banker is imperative through the unknowns. When you bank locally, the CEO of your community bank can be the first line of defense. Instead of picking up the phone and talking to an automated voice messaging service or chatting with an online bot, you can directly find your banker's number and call when you need help or have a question.

Community bankers pick up because you're more than just an account number to them—you're a member of their banking family.

3. Safety and soundness are the bread and butter of community banks.

You can bank with confidence at your local community bank because no one has ever lost a dime of FDIC-insured funds. Community banks hold FDIC deposit insurance, which covers each depositor's account, dollar-for-dollar, up to the insurance limit ($250,000). If your deposits exceed that, community bankers are there to advise you.

With a time-tested business model, community banks maintain diversified portfolios rooted in building relationships and earning long-term trust with the customers and community they serve.

It's simple and straightforward: Community banks invest in the community and in you, and that’s something you can feel safe, sound and secure about for the long haul.

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


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.

Is my money safe in a community bank? ›

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.

What are the benefits of a community bank? ›

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.

Why is your money safe in a bank? ›

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.

What are two ways banks keep your money safe? ›

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.

Are community banks at risk? ›

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.

What are 3 benefits of banks? ›

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.

What are 2 benefits of using a local community bank? ›

Here are five benefits of community banks for individuals:
  • Personalized Attention. Employees of community banks pride themselves on the value they put on their clients as individuals. ...
  • Full List of Services. ...
  • Lower Fees. ...
  • Higher Ethical Standards. ...
  • Stability.

How does a bank impact a community? ›

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.

Why keep money in a safe? ›

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.

How much is safe in a bank? ›

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

Where can money be saved? ›

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.

Is money safer in checking or savings? ›

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.

What is one disadvantage of a community bank? ›

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.

Are community banks struggling? ›

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.

Are community banks better than big banks? ›

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.

Is community bank insured? ›

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

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


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