The recent failures of multiple high-profile financial institutions such as First Republic Bank and Silicon Valley Bank may have left you feeling uncertain. If a major interstate bank with hundreds of billions of dollars in assets can fold so suddenly, what’s to stop the local bank near your home from sharing the same fate?
“The only thing certain is nothing is certain.” The immortal words of Michel de Montaigne apply equally to everything in life – including the future of your community bank. That said, of all the places you could feasibly store or invest your savings, a local bank represents one of your securest options. Its deep-seated ties to the community, accessibility, and FDIC deposit insurance all create the peace of mind you deserve when so much is at stake!
Community Banks Are a Long-Standing Institution
Community banks aren’t exceptional – they are the status quo. As of 2023, banks with less than $10 billion in total assets represented 97 percent of the United States banking industry. Roughly one out of four counties exclusively depend on community banks. Nearly half of rural counties only have community banks.
The abundance of community banks is not a recent development. Throughout the Civil War, the Great Depression, the Second World War, and every other trial our country has faced, community banks kept their doors open and their services available to the public. Community banks actually outperformed larger financial institutions during the pandemic – a feat they owed to their firmly established client relationships, intimate understanding of local businesses, and key role in facilitating the U.S. Small Business Administration’s Paycheck Protection Program.
Community Banks Are Always Within Reach
If you bank with a large financial institution, your most immediate point of contact is its call center. You may speak to someone who lives and works outside of the country. And if your bank only offers automated customer service, you may not speak with “someone” at all.
A community bank’s customer service is the polar opposite. Rather than an account number, their team members treat each client as an individual. And if you ever require a loan, you’ll be able to represent your case to a decision maker – not someone who only cares whether your data checks all the boxes.
Community Banks Are FDIC Insured
If you deposit money in a checking, savings or money market account at your local bank, it is almost certainly covered by the Federal Deposit Insurance Corporation: an independent agency created by Congress to maintain stability and public confidence in the nation’s financial system. FDIC insurance covers every dollar you deposit up to $250,000.
If you would like to deposit more than $250,000, then you can still receive the same peace of mind by dividing your savings across multiple different banks. And if you would rather put so much money to work instead of merely stashing it away, your community bank can advise several secure yet rewarding opportunities for your money.
If you would like to keep your money safe – and closer to the community you proudly call your own – then we welcome you to contact Sherburne State Bank or visit one of our locations in Becker, Monticello or Princeton, MN in person today.