Bigger Not Always Better: Large Banks Vs Small Banks

What are you looking for in a bank? Are youto have that personal touch, and interaction with
more concerned about having extensive accesscertain tellers and other bank employees. Bigger
to your account at all times or is yourbanks have large departments and customer
experiences with those that work in the bankservice representatives handling issues sometimes
every day? Depending upon how you answer thatfrom all over the country, depending upon the
question and others, will go a long way insize of the institution. Another disadvantage is the
determining whether you would be happier with afact there are typically far more fees associated
large bank or a small one. Naturally, there arewith bigger banks and their practices than you will
very clear-cut differences between larger financialfind in smaller banks. Personal service may take a
institutions with multiple branches across the statebackseat to other affairs when dealing with
or country and the small local bank that maybureaucracy in the bank setting. (You are less
have only one location in the county.likely to get assistance with loans and small
There are several factors that should bebusiness services in the larger bank setting.)
considered when it comes to a comparisonWhat are the advantages of the small bank? First
between these two different types of institutions.of all, you have genuine personal attention and a
None of them is more important than what kindstronger connection between bank worker and
of service you as the potential customer prefer.customer. In the smaller bank setting, you will be
The best way to illuminate the differences is toable to get assistance with loans. It is not
compare the pros and cons of each one and letuncommon to speak directly with the person in
you, the customer, decide where you would becharge of approving a loan whereas in a larger
more comfortable doing business.bank setting you would never have access to
One of the biggest advantages of the large banksomeone in that executive capacity. Smaller
is sheer coverage. There are often multiplebanks are apt to work with their customers
branches not only in a town or city but evenespecially in cases with overdrawn accounts,
across the country. Consequently, with so manyaccount mistakes, etc. Of course, the common
locations spread out across a broad area, it isdisadvantages have much to do with mobility of
more likely that you will also have better ATMaccount and access to ATMs. With the former, if
coverage provided by that banking network. Youyou have to move you may have to change
will not have to worry about paying extrabank accounts entirely since a branch may not
services charges to make use of the ATM.exist in your new locations. With the latter, there
Another advantage of bigger banks is the factare less ATMs associated with your bank so you
that even if you have to relocate, you will notwill have to pay those extra fees for using
have to transfer bank accounts and accountanother bank's ATM.
numbers. This is a big plus for renters and thoseCertainly, there may be other differences not
who have to move to a different city formentioned here, but those highlighted should
business reasons.suffice to show you some of the obvious
Some of the cons of bigger banks only becomedifferences between these two kinds of banks.
obvious when you deal with them over time.The only question is, "Which one would you rather
Naturally, unlike a smaller bank, you are less likelyuse?