With movements on social media, such as #BuyBlack, #MoveYourMoney, #BankBlack and #SupportBlackBusinesses, African American banks continue to be vital to the economic growth of the Black community. Because of deadly police violence, influencers like Killer Mike have made a call to action. The idea is to get African Americans to do the #BlackTransferChallenge and move some of your money — if not all of it — to Black-owned banks.
When considering opening an account at a bank, here are five reasons you should consider a bank that is Black-owned:
1. The survival of our community and the growth of our economic power are recognized as they are able to make more loans to people who are African American business owners, African American entrepreneurs and African Americans who want to be in business.
2. The need to develop a relationship with a bank that looks and feels like you and is committed to the same mission and vision that you believe in.
3. Oftentimes we are looking for banks that are in our neighborhoods, which is where most African American banks are. According to Bank Black USA, 59 percent of Black banks have branches in Black communities. Most offer auto loans, personal loans, secured and unsecured installment loans, online services and access to all the major national ATM networks.
4. Many Black banks offer low minimum account balances, free ATM networks, online banking and interest rates that beat the large banking institutions. Like most major banks, all Black banks have an FDIC insurance policy protecting your funds up to $250,000.
5. Lastly, the very growth of our community dictates that we have a collective economic agenda. Have you ever thought about what the bank does with your money? Black-owned banks serve their communities by providing financial services and capital to minority-owned businesses. Moving money to Black-owned banks and, more importantly, opening credit card, loan and mortgage accounts can create more access to capital that can go to support Black businesses, home ownership and empowerment in the Black communities across the nation.
Click here for 5 top Black banks.