A nationwide survey from GoBankingRates.com finds that banking preferences vary by age, older Americans like saving their money in community banks, while young adults favor national banks.
Americans 65 and older prefer banking with local banks (at 50.5 percent), whereas young adults age 18-24 favored national banks (at 38.5 percent), according to recent data from GoBankingRates.com.
Casey Bond, managing editor of GoBankingRates.com comments, “Considering the thousands of banks that failed during the 1930s, it’s not surprising older Americans who grew up in the aftermath of the Great Depression would value institutions with deep roots in the community over national banks. Though Gen Y experienced a similar scenario in the late 2000s, this generation, influenced by corporate branding and convenience, has a much different set of values than their grandparents and great grandparents.”
Other Key Findings:
- Respondents in the 65+ age category preferred national banks the least, at 17.6 percent.
- 25-34 year olds preferred local banks the least, at 33.5 percent, closely followed by 18-24 year olds, at 33.6 percent.
- 18-24 year olds preferred credit unions the least, with just 25.4 percent stating credit unions are their most liked financial institution type.
- 34-44 year olds preferred credit unions more than other age, at 37.3 percent.
The GoBankingRates poll asked respondents, “Which do you prefer: National banks, local community banks or credit unions?” and looked at age, gender, income, geography and urban density as factors.
Xavier Epps, financial advisor and president of XNE Financial Advising, comments on the data stating, “18 to 24-year-olds like what they see the most: national institutions…credit unions lack an in-depth geographic footprint.”
Credit unions are typically known for their high level of customer service and local community involvement. Credit unions, which are member-owned financial cooperatives, typically have fields of membership based off geographic locations, employers or membership in a group.
Epps adds, “While credit unions offer online capabilities, low loan interest rates and NSF fees, the 65+ age group may not appreciate these benefits as much as other groups because they’re less technologically savvy overall; they typically have no desire for more debt and maintain sufficient cash balances.”
The survey was executed by Google Consumer Surveys and can be seen in its entirety on GoBankingRates.com at http://bit.ly/15nJgE5.
The survey was conducted between June 13 and 15 with a root mean square error of 2.3.
About GoBankingRates.com
GoBankingRates.com is a personal finance website that connects consumers with the best interest rates nationwide on savings, CD Rates and checking accounts, as well as auto and mortgage loans. They collect rates from over 5,000 banks and credit unions, making it the only rates aggregator that provides comprehensive local rates. GoBankingRates.com’s editors have been featured on several top media outlets such as US News, Yahoo! Finance, Forbes, The Street, LA Times, Huffington Post and more.
