More People Move Money to Small Banks

Bank deals at smaller lenders are attracting people fed up with policies at large banks. Some customers are angry about big banks jacking up credit card rates and other fees ahead of reform laws that go into effect in February. Others are looking for more personal service.

Credit unions also are getting more interest from consumers looking for competitive savings, checking accounts, and other services. Many small, community banks avoided the predatory lending practices that contributed to so many problems in the U.S. economy. So some of them are still lending money and have competitive bank rates on various products.

However,  not all small banks are doing well. Of the banks that failed last year, 81% were small banks, according to ABC News. More small banks are expected to fail this year. “A lot of the regional and community banks are going to struggle to remain independent. We’re going to see those numbers shrinking,” Terry Moore, a managing director at Accenture, told Fortune.

If you are looking for savings, checking accounts, or other bank deals, make sure  you thoroughly investigate the services being offered and if there are any signs of a possible bank failure. Use the FDIC Bank Find to determine if a particular bank is insured by the Federal Deposit Insurance Corp. (FDIC).

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