Students decide between opening national, local bank accounts

Opening a bank account is often a personal milestone, giving people opportunities to save and manage their hard-earned money and plan for the future. In Bloomington, there are many banking choices.\nWith local banks offering the same services as national banks, it seems as though many people are choosing local banks such as Monroe Bank and IU Credit Union, where profits and members are rising. In the past decade, Monroe Bank's market share increased from 20 to 30 percent of the Monroe County deposit market. This year their share of the market is 11 percent more than the closest competitor.\nMonroe Bancorp, headquartered in Bloomington, recently declared a 10 percent stock dividend. What this means for stockholders is that for every 10 shares owned they receive one share, but each share is worth less, which is like getting four quarters for a dollar.\nThe stock dividend does not necessarily mean more return on your investment, nor does it mean less.\n"Monroe Bancorp has provided its shareholders with consistent increases in year-over-year earnings over the last fifteen years," said Mark Bradford, president and CEO of Monroe Bancorp. Monroe Bancorp, the holding company for Monroe Bank, has seen its profits increase 8.6 percent this year compared to a year ago.\n"The stock dividend also allows us one more opportunity to communicate with our customers and touch them in a positive way," Bradford said. As a result of the dividend, customers have the opportunity to purchase stocks at a lower price. If Coca-Cola Corp. had never once split its stock, one share would be priced at more than $300,000 today. Since Coke split its stock, one share purchased in 1919 would be more than 4,600 shares today, according to David and Tom Gardner, authors of "What to do With Your Money Now."\nMonroe Bank feels that having IU nearby is to the company's advantage. IU brings students, faculty and spouses totaling more than 40,000 potential customers to the area, Bradford said. Also, Monroe Bank uses MBA students to perform research projects for the benefit of the business and students. Bradford also said IU's beautiful campus and a multitude of entertainment options makes it easier to recruit employees from outside the area.\nIU Credit Union, also headquartered in Bloomington, thrives off the University. Every August, there is a rush of students and faculty who open new accounts with IU Credit Union. To meet the demand, IU Credit Union increases its workforce temporarily to assist with customers opening new accounts, a program run by branch manager Kim Wooden. IU Credit Union has 10 locations throughout the state, including five in Bloomington, with two on the IU campus.\nMany students, most of whom do not live in Bloomington year round, often choose to open accounts at national banks, such as Fifth Third.\n"Choosing to bank with Fifth Third was a logical choice because of their presence around the country," graduate student Cory McWilliams said.\nAlthough Monroe Bank has locations in central Indiana and IU Credit Union has locations at IU regional campuses, these banks are not prevalent in communities outside of Monroe County. Banking with a national institution is a popular choice for those students.\n"I can keep my account at home and access it here in town," said Chase customer freshman David Triplo.\nStudents are able to maintain their home accounts and can access their accounts from branches throughout the country, including Bloomington and their hometown. It is a common option to have only one bank account and not multiple bank accounts in multiple cities.