Top 4 Benefits of Using a Local Bank in East Tennessee

A happy couple meeting with a banker.

Whether you’re looking to open a checking account, obtain an auto loan, or apply for a home mortgage, choosing the right bank is essential. Financial experts agree that local banks offer a number of advantages when compared to big banks. Here at Tennessee State Bank, we have been dedicated to serving our local community for over 45 years. With branches in Sevier County, Knox County, Cocke County, and Jefferson County, we offer convenient banking services in East Tennessee. Read on to learn about some of the major advantages of using a local bank.

1. Local Banks Don’t Make Risky Investments

As noted by the investment website Money Badger and the Institute for Local Self-Reliance, large banks are beholden to their shareholders, which can encourage them to make high-risk investments with your money.1 In contrast, many local banks are not publicly traded and don’t have any investors to cater to. Instead of engaging in speculative trading on Wall Street, Tennessee State Bank uses its funds for local investments, like small business loans and mortgages.2

2. Local Banks Offer Personalized Attention

A bank teller helping a customer with some documents.

Ruth Susswein, the deputy director of the consumer advocacy organization Consumer Action, told Bankrate that local banks typically offer “more personal attention” than big banks.3 Dealing with large banks can sometimes feel rushed and impersonal, as tellers try to get you in and out of the door as quickly as possible. At Tennessee State Bank, we take the time to get to know our customers, so we can best serve their unique needs. Our team members are some of the friendliest people you’ll ever meet!

3. Local Banks Have Better Rates and Lower Fees

Bankrate notes that local banks usually have better interest rates than big banks. Whether it is saving accounts, money market accounts, credit cards, or CDs, customers at local banks typically come out ahead. Local banks are also known for charging lower fees than their larger competitors.4 At Tennessee State Bank, our personal checking accounts have no per item fee, no ATM fee at Tennessee State Bank owned ATMs, no fee for online banking, no fee for monthly eStatements, and no fee for text banking.*

Sevier County in the Smoky Mountains of East Tennessee.4. Local Banks Help Your Community

According to the Institute for Local Self-Reliance, big banks do relatively little investing in small businesses. Although the largest 20 banks control around 57 percent of all bank assets, they only designate 18 percent of their commercial loan portfolios to small business. It is instead local banks across America who are responsible for providing small businesses with the resources they need to grow and thrive.5

Tennessee State Bank was founded with the mission of helping businesses in our community. Our original board of directors envisioned a financial institution that would take a vital interest in East Tennessee’s cultural and economic development. Not only does Tennessee State Bank invest in local businesses, we also support local charities, including Friends of the Smokies, the Sevier County Food Ministry, and the Boys and Girls Club.

Tennessee State Bank’s motto is “Banking at its Best!”SM, and we strive to live up to that creed every day. Let us know how we can serve you by sending us a message via our Contact Form.



*Third party data & messaging rates may apply.

All statements regarding accounts at Tennessee State Bank are accurate as of the date of publication, 2/20/2018.

Tennessee State Bank is Member FDIC and an Equal Housing Lender.
1. Steinhardt, Scott. Money Badger. 11 Oct. 2016.
2. Mitchell, Stacy. Institute for Local Self-Reliance. 30 Jun. 2010.
3. Lazarony, Lucy. Bankrate. 9 Apr. 2010.
4. Lazarony, Lucy. Bankrate. 9 Apr. 2010.
5. Mitchell, Stacy. Institute for Local Self-Reliance. 30 Jun. 2010.