If you’re of the millennial generation, then there’s a high chance that you might be wondering whether you should sever ties with your big bank. You may want to support small credit unions rather than giving your hard-earned to the big guys, especially for unnecessary charges like Wells Fargo checking account fees or relentless overdraft protection fees. And this makes total sense! Before you switch banks, however, there are few things to consider about the pros and cons of each type of bank.

Reasons to stay with your big bank

If looked at from a universal level, big banks are pretty much in the same space as small banks. If you’re thinking about switching simply because you see all banks as money-grabbing corporate entities, then you should understand that technically speaking credit unions and community banks also exist to generate revenue at the end of the day. 

Irrespective of their size, banks must survive by not only investing whatever sums of money customers deposit, but also by charging fees for those services. Many millennials might contend that the Wells Fargo checking account fees debacle is something they did not need: In late 2018, over 5,300 Wells Fargo personnel were dismissed after it was discovered that they had secretly created several million unauthorized credit card and bank accounts — with customers receiving account fees and other service fees that they never signed up for. 

Certain big bank technologies may potentially be superior. Many credit unions and small banks aren’t using the latest customer service technology and apps. What this means for you is higher wait times because branch personnel will probably need to track down customer details on paper-based files rather than a speedy online database. If you need prompt answers to money-related questions, then big banks may offer a potential advantage. 

Big banks may offer higher accessibility. If you prefer to have your bank branches in every single city, you’ll probably have to forego this privilege with a small bank. Both credit unions and small banks generally have significantly fewer branches than their big bank counterparts. In fact, many do not have an ATM network set up outside of their regional presence, which means if you need to take money out of a random ATM, you will probably have to pay an extra few bucks for a out-of-network banking fee.

Reasons to part ways with your big bank

Majority of small banks offer really good interest rates. Since they are non-profit in nature, credit unions especially can offer you the best interest rate on a savings account. Not only that, but they may also offer lower mortgage rates, along with many other banking products at highly competitive prices.

Small banks offer a more personal touch. Many millennials claim that small banks provide a far better customer service experience. In fact, it’s quite uncommon to come across a small bank that won’t charge you a cent for availing teller services. This adds a personal touch to the experience and makes you feel appreciated and respected as a customer. 

Your money will remain safe. As long as your small bank/credit union displays the NCUA or FDIC badge, your money stays just as safe as a big bank, because this means deposits of up to $250,000 are insured. 

There’s no telling what additional service fees your bank might try to cleverly sneak in down the line. So perhaps it’s time to switch to a smaller bank — but we’ll leave that entirely up to you!