5 Crucial Banking Tips for School Districts
Work With Experts Who Understand Government Codes & State Statutes Regulating Deposits
By law, school districts are restricted when it comes to where they may deposit funds. It’s incumbent upon these districts to work with a knowledgeable resource who can help them navigate where their operating funds should go.
Five Star Bank's Jerry Legg, SVP, Government Banking Manager, has expertise to guide your government agency or special district through these regulations.
Work With Local Resources
Community banks have the same products and services as nationwide or global banks, but are often more accessible due to their local locations. If school districts work with a nationwide bank, they are often speaking with an outsourced representative who cannot answer their questions or serve their needs as efficiently
Jerry Legg is happy to meet at your location to train your staff in person.
Understand Account Types Available With Community Banks vs. Nationwide Banks
Due to their size and constant drive to bring in new accounts, nationwide banks often put school districts in a basic checking account without noting the number of transactions of the account. Community banks have a larger bandwidth to examine what the account is being specifically used for. As an example, Five Star Bank notes when an account has limited transactions and works with the account holder to educate them on their options, including moving to interest-bearing accounts.
The goal is to have school districts earning interest and limiting the use of non-interest-bearing accounts wherever possible.
Rates & Pricing Matter
We work with the local community and make it a priority for schools to earn more on their deposits. With the understanding that money comes from multiple sources including Federal funds, State funds, or fundraising, a community bank realizes how hard it is to come by those dollars and takes steps to ensure school districts are getting the most they can with their funding sources.
At Five Star Bank, the interest rates school districts receive on savings accounts and interest-bearing accounts are often higher than those from national banks.
Community bankers live in the towns where school districts reside. We want the best for school districts in our region and are far more vested in the success of a school district than a nationwide bank.
Jerry Legg, SVP, Government Banking Manager