Advantages of Banking Locally

With the number of banks that operate either nationally or internationally, there are practically a limitless number of options available to individuals looking to open new bank accounts. Chain banks may offer a larger brand recognition, but in many cases this recognition comes at the expense of the service and features that smaller banks can offer. Below you'll find some of the advantages that smaller local banks offer, to help you when you encounter the decision of whether to open an account with a larger chain bank or to choose a local bank instead.
Customer support
Local banks are generally more likely to have better support for the customers in their area, in no small part because of the fact that everyone involved in the customer support process are local to the area and in many cases have lived there for years. Quite often even the management and board of directors of the bank are largely local, and are much more likely and willing to adapt their business strategies to the wants and needs of the local community than larger chain banks would be.
Banking services

Though local banks aren't backed by national or international banking chains, they generally offer competitive services that meet or surpass those that are offered by large corporate banks. In addition, those who create services and set policies for local banks are much more likely to be directly involved with the customer support process and as such are more likely to attempt to meet the expectations and desires of their customers so that customers can receive the services that they're looking for.
Interest rates

Though interest rates are usually set at the national level and then adapted to the needs of the bank, independent local banks are generally more likely to offer lower rates than some of their corporate competitors because they are able to more readily adjust to the income levels and financial capabilities of the local community. As a related note, interest rates and loan terms can have a little more flexibility than they might in larger banks since everyone involved in the loan approval and management portions of bank operation are available locally; this means that getting loan modifications or specialized terms approved don't have to go through several different locations simply to get approved.
Local service

As mentioned above, having management and ownership of the bank occurring locally means that common customers have much more direct access to those in charge of the bank than those who are customers at national or international corporate banks. An added benefit of this is that the bank is usually more directly involved with the community that supports it, and is able to help keep money earned in the local area in that area. Local banks often sponsor a variety of different activities in the area, and may be involved in a variety of community service projects that other banks can't get the approval to participate in.
Investment

An important feature of local banks is the fact that individuals can often invest directly in the bank. Often local banks give shareholders advance notice and first options when they issue new shares of stock, and are likely to show a good return on any investments made. Should the bank begin to falter later on, there is also a much larger chance that a corporate bank will purchase it instead of letting it fail; this means that the previous shareholder will either have their shares purchased outright or (as is more likely) will be offered an equal value of stock in the major bank corporation that is buying the bank.