What are the Roles of Local Banks?

Local banks differ from commercial banks, because these banks have only a few branches and locations, helping to give the feel of a bank that cares about each consumer individually. Some people, especially the older generation, prefer to bank with people they have known for many years and at a bank that is from the local area.

Checking

Local banks fulfill the need for checking accounts. Checks are used by many to pay both bills and employees. Checking accounts can also be used to pay bills automatically or by phone or Internet using a debit card linked to the checking account. Employers have the choice to pay employees out of their payroll checking account by live check or direct deposit.

Savings

Local banks also offer consumers savings accounts. Account holders can keep their money safe for holiday savings, an emergency fund or any other reason. Savings accounts typically earn a very low interest rate for account holders and banks often require a minimum amount to be kept in the savings account.

Notary

Local banks often have a notary as part of their staff. Many official documents must be notarized in order to be legal and enforceable. A very good example of this is automobile titles, although a lot of other documents such as birth certificates must be notarized also. 

Lending

Local banks offer lending services to consumers also. Lending can be in the form of credit cards, mortgage loans, unsecured loans, auto loans or equity lines of credit. Lending officers at local banks work with consumers to determine what amount of loan the bank can finance for them, the interest rate the bank must charge, the repayment timeframe and payment amounts.