Many Americans (41%) prefer local banks to national institutions and credit unions, finds a new GoBankingRates.com survey.

In comparison, credit unions were favored by 34%, while only 22% of those surveyed selected national institutions as their main banking choice.

“There’s been a surge in movement from banks to credit unions in recent years, [but] Americans are still an incredibly diverse group when it comes to financial priorities and concerns,” says GoBankingRates.com managing editor Casey Bond.

Highlights of the study:

  • Half of the participants over the age of 65 choose to bank with local institutions
  • Gen Y respondents (those up to age 24) prefer national banks (39%)
  • Americans living in major cities prefer credit unions (37%) and national banks (26%), while those in rural communities choose local institutions (50%).

GoBankingRates suggests local banks are a source of leadership and community authority, and says that’s why there’s a “strong demand for community banks within [the U.S.] financial system.”

Note: The survey defined community banks as smaller institutions that are operated by local residents. National banks are chartered by the federal government and have locations in several states.

See full survey results.

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