Three Reasons Why Small Banks Are a Big Hit

Community banks offer an attractive alternative

1) Higher yields. While money market mutual funds pay almost nothing (0.21%, on average, in mid-April), several community banks are paying over 2% on money market deposit accounts. These accounts are backed by the Federal Deposit Insurance Corp. (FDIC), up to $250,000 per depositor per bank, which is true for all accounts at FDIC-member banks. Money market deposit accounts are liquid and safe, so you might want to consider them for your cash reserves now. At, you can search for the highest yields on all types of bank accounts.

Even higher yields are available at the thousands of community banks offering so-called “rewards checking,” developed by BancVue. Yields generally are 3% or more. First Robinson Savings Bank ( of Robinson, Illinois recently topped the list with a 6.01% yield. Rewards checking accounts typically have no fees or minimum balances; you can find participating community banks at

“Rewards checking works for some people but not for everyone,” says McBride. “To get the high yield, you usually have to agree to direct deposit of your paychecks, online statements, and use of the bank’s debit cards at least 10 times each month. If you use your debit card nine times in one month, your yield will drop sharply that month.”

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  • It is very important that you find out whether or not your bank large or small is carrying the new FDIC deposit limits before making any rash decision regarding large or small(Hometown)banks. Credit Unions and a Smaller servicer seem to have a better grip on personalized business relations with depositors within there community… Mainly, being that the relationships are upfront and personal in bank and community oriented. Someone that they can have walk in.
    When it comes to Home Loans you need to research with both the banking side and the brokerage sides to see who will be more applicable. The bank on has one set of guidelines and program; while the broker has several lending institution and banking realtionships to give you several option(s) that will never be offered through principal lending. The advice is well recommended and worth the work… Your bank may deny you; but the brokerage may find a suitable lender fit for your personalize needs…

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    Calvin Kyles, Origination/Broker
    Sunset Mortgage Co
    Oregon, Washington, & Idaho

    Helping one family at a time…

  • great points on home financing. I Look forward to reading more here in the future.

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