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Finding the Right Bank for Your Financial Needs

Not for profit banking is a way of lending money that is not like traditional bank lending. Unlike how the local banks work, this form of banking comes from money that has been collected by the community. This would mean that select people of the neighborhood will have control or say-so of who is able to be lent some money. This has actually been a practice that has gone on for quite some time. It has just evolved in how it has operated many centuries ago.

It’s quite important that financial institutes that can be trusted by the community are readily available for those who are in need. You might be wondering exactly what the best option would be for nonprofit. Should a commercial bank be used, or a credit union? What are some things that you will be taking into consideration when you choosing the type of banking to go with? Choosing a not for profit bank can be situation that is quite overwhelming. Even switching institutes can be quite the challenge. As you read along, you will learn more about some useful tips that will help you in choosing the right nonprofit bank.

Choosing from three different bank types?

Commercial Banks

One of the first options that people choose when they are looking for a nonprofit bank is a commercial bank. The reason being is because there are usually accounts that have been specifically created for nonprofit needs. Since these banks are national banks, there are only a few things that you can’t get when using this type of bank.

Small Banks

Good not for profit banks are usually smaller ones that are supported by those who live in the neighborhood. They often have many of the same available resources and amenities that the larger banks have. However, you might find that some of them don’t offer the option for wire transfers and coin deposits.

Credit Unions

A credit union is known for operating as a not for profit bank. Member benefits often funded by the interest that comes from the member fees in their accounts.

Accessibility

When it comes to financial institutes, you need to make sure that you have everything that you need when you looking for the right bank that is not for profit. Some things that you questions before you choose a bank are:

  • Does the bank have a branch available near you?
  • How does their customer support work?
  • Does the company offer mobile banking?
  • What are the limits for the deposits?
  • How many people can access one account?
  • What type of access rules are there?

Fees

When it comes to a not for profit bank, you need to know whether or not there are any fees involved for the purpose of processing payments or using ATMs. There are banks that charge fees per transaction and those that don’t. It’s best that you try to save by not having a bank that will charge per transaction.

 

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Comments: (2)

Melvin Haskins
Melvin Haskins - Haston International Limited - 27 August, 2019, 11:201 like 1 like

What about Building Societies in the UK (the US equivalent is a Savings and Loans organisation)? They are not for profit organisations that can be very large and compete with commecial banks. The Nationwide Building Society in the UK is as big as most commercial banks and has a large number of branches.

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 27 August, 2019, 13:05Be the first to give this comment the thumbs up 0 likes

I know people choose banks based on security of funds, fees, ease of deposit, proximity of branch, interest rate, etc. But, TBH, I don't know anyone who chooses a bank because it's a not-for-profit bank. I've also read dozens of reports on "Ten Things To Consider When Choosing A Bank or Credit Union". I haven't seen "nonprofit" as a factor affecting choice of FI in a single report.

Why should it? IME, the man on the street only has a vague understanding of what even the term nonprofit means (no, it does not mean the company does not make profits).

Happy to be proven wrong if you can cite reports that say otherwise. 

Pooja K

Pooja K

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This post is from a series of posts in the group:

Behavioral Economics in Banking

Banks can’t predict user behavior with absolute certainty, but they can help frame their financial decisions by understanding how choices are made, and designing solutions around them. This group is for all things behavioral economics in the banking industry.


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