Which type of banking institution is a better place for you to put your money, and to do your banking at?  Are the big name banks the best choice for you, or, should you instead select a local bank or credit union?  Let’s take a brief look at both the big name banks, and the local banks.

Big name banks are the large financial institutions that have names you would recognize. Banks like Wells Fargo, J. P. Morgan Chase, Citibank, and Bank of America are a few examples of big name banks.  Recently, there has been a lot of talk in the news about the big name banks, and their relationship to the current economic situation.

There are advantages and disadvantages to using the big name banks.  One advantage is that they are nationwide.  This means that if you are traveling, you have a good chance of finding a branch of a big name bank wherever you go.  The big name banks have the most ATM locations, so you are less likely to end up using one that is not from your bank, and getting stuck with an extra ATM charge.  If you are already using a big name bank, you might feel that it is more convenient for you to stay there than to move your money to a local bank.

The major disadvantage of using a big name bank is that you are always going to be seen as “a number” instead of a person by the bank.  Their interest in you is related to how much money they can make from you.  Often, their customer service is less than desirable.

Local banks, sometimes called Credit Unions, have their own advantages and disadvantages.  One major advantage is that they see their customers as people.  You are less likely to be talked into a loan that is more than you can handle by a local bank.  This is because the local bank is interested in helping the local community.  Their customer service is very good.  Most local banks do not charge customers for things that the big name banks are charging a fee for.

The biggest disadvantage of local banks is that they do not have as many branches as the big name banks.  It may be difficult to find an ATM when you need one.  Also, not all local banks are able to offer its customers credit cards.