Money Minute: Types of banks

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Money Minute: Types of banks

Money Minute: Types of banks

When it comes to banking, you have choices. There are community banks, big banks and online banks also known as fintech.

If you are someone who travels often or moves frequently, there’s an advantage to a national bank. They offer full-service banking with a range of products and services.

An online bank is just that — full banking online.

If you’re staying put, a community bank might be an option. They should have typical banking services, are often locally or privately owned and will tell you they focus on where they’re located.

“At a local community bank, you see me daily and you can talk to me every day,” said Jay Whitcomb, the vice president at Star Bank.

Whitcomb says as a community bank, they try to get to know you.

“It’s the continuity of relationship that can be important,” he noted.

A big bank will probably have more ATMs and locations, so you can do your banking in lots of places, while an online bank may have no locations, but they sometimes offer bigger savings rates.

Without a brick-and-mortar location, however, it may not be possible to talk to someone face-to-face.

Community banks can be in metro areas but are sometimes also in smaller towns, where some of the big banks might not have a location. Whitcomb says that’s where a community bank has an advantage.

“It makes sense to have someone to know you and get to know you,” Whitcomb added.

Wherever you decide to bank, consider all your options and find the one that fits your situation best, whether it’s short-term or for the long haul.