Benefits of having a bank branch nearby

Brick and mortar versus online banks

When deciding between an online-only bank and one with physical branches, often referred to as “brick and mortar bank,” it’s important to weigh the pros and cons. Online banks are able to attract customers with higher interest rates and lower fees because they have lower overhead costs. However, online banks often lack the personal touch and immediate access to certain services that local banks with physical branches offer.

“Local branches often provide customers with a sense of security,” says David Chen, director of finance at Relyir. “Having a physical space to visit offers a personal touch, hands-on service, and immediate problem resolution that online platforms might not guarantee.”

Physical branches allow customers to interact directly with bank employees, making it easier to resolve issues or ask questions in real time. Furthermore, local banks often have connections with the community, offering services tailored to local needs. On the other hand, online banks typically provide robust mobile and online banking platforms, appealing to those who prioritize digital convenience over face-to-face interactions.

Here are three reasons why it’s worth considering having a bank branch near you.

1. In-person services

One of the advantages of having a local bank with physical branches is access to a variety of in-person services. These services are important for customers who need to handle specific banking tasks that online-only banks can’t accommodate easily.

For example, local banks often provide safe deposit boxes where customers can store valuables and important documents. This service is important for those who need a secure location for items such as birth certificates, property deeds or family heirlooms.

Another essential feature is notary services, which are available at some local bank branches. Notaries help certify documents and provide a key service for legal documents, such as real estate transactions or loan agreements.

Furthermore, customers who need to deposit large amounts of cash or checks benefit from having a local branch. While online banks may allow mobile deposits, they often have limitations on the amount you can deposit. Local banks can process large deposits quickly and efficiently, providing immediate access to funds.

“If there’s ever an issue with my account, I can walk into my branch and speak to someone face-to-face,” says pharmacist Mena Boles. “They understand my business and finances, so they’ve been able to provide the right products and services to meet my needs, like a competitive business credit card and line of credit.”

According to a Bankrate’s latest online savings survey, among people with short-term savings who don’t have an online savings or money market account, 45 percent said it’s because of preferred access to a local branch.

2. Cash and foreign currency

Access to cash is another advantage of having a local bank branch. While online banks rely on ATM networks to provide cash, local banks typically offer more direct and immediate access to cash withdrawals without the potential fees associated with out-of-network ATMs.

“My employees and I frequently visit our local bank branch to deposit checks from customers and withdraw cash for jobs that require it,” says Joe Gerrior, owner of family-owned business Gerrior Masonry & Landscape Construction Corp.

Also, local banks are often more equipped to handle foreign currency exchanges. Whether you’re traveling abroad or returning home, having a local branch allows you to exchange currency conveniently, usually at more competitive rates than at airport kiosks or foreign exchange offices. This service is valuable for frequent travelers who need to exchange currency regularly.

3. Relationships and community building

A benefit of local banks is the opportunity to build relationships with the staff. Regular visits to a branch can lead to strong connections with financial advisors, tellers and other bank employees. 

“Brick-and-mortar branches can act as community centers, foster personal relationships, and support local businesses by knowing them personally and offering financial counsel tailored to their needs,” says Chen. “This factor integrates them into the community fabric, which is beneficial for both consumers and businesses.”

Local banks often engage in community-building activities, such as sponsoring local events or offering financial education workshops. Customers who bank locally are part of a broader community network.

Gerrior wholeheartedly agrees. He appreciates the personal touch that a local bank offers.

“The tellers know us by name and are able to handle our business efficiently,” Gerrior tells Bankrate. “If there’s ever an issue, we can simply walk into the bank and speak to someone directly. This level of customer service provides peace of mind that our money is in good hands,” he adds.

Bottom line

Local banks remain an important part of the financial landscape, offering a range of in-person services that online-only banks can’t match. From opening a checking account or a safe deposit box, to personalized advice, local banks provide value that goes beyond banking transactions.