Given how much the banking industry depends on the real estate market, it is not surprising to see banking suffering in a state like Nevada, which has had brutal real estate conditions since the housing bubble burst.
Foster City, Calif. (PRWEB) May 19, 2014
The 2014 MoneyRates.com Best and Worst States for Banking study highlights Missouri as the top state for banking in the U.S., based on the state’s top-10 survey rankings for customer service, stability and range of choices. Nevada tops the list of the worst states for banking because of its weak scores across all of the same categories.
Missouri posted strong scores in all of the categories measured in the survey, placing it just ahead of second-place finisher Kansas and third-ranked Nebraska, two states that also brought in above-average scores in every category.
Nevada earned its spot atop the worst list through a relatively high rate of failures (second-worst in the nation), a low number of banking options (eighth-worst in the nation) and poor customer service ratings (fifth-worst in the nation). Arizona was the next worst state on the list, due largely to its having the highest rate of bank failures in the nation in 2013, and Connecticut ranked as the third worst through its weak scores for bank failures and bank choices.
Richard Barrington, CFA, senior financial analyst for MoneyRates.com, says that Nevada’s hardships in real estate in recent years have likely played a role in the state’s banking troubles.
“Real estate is often described as being all about location,” says Barrington. “Well, given how much the banking industry depends on the real estate market, it is not surprising to see banking suffering in a state like Nevada, which has had brutal real estate conditions since the housing bubble burst.”
Barrington adds that living in one of the lower-ranked states in the survey doesn’t doom consumers to a life of unhappy banking, as numerous banking options exist even in these places.
“Always remember that banking is a very fragmented industry, which means that there are lots of choices,” Barrington says. “Nowadays, online banking is making choice even more widely available. So, if there is anything you don’t like about your bank, shop around. There are always others out there.”
Here are the 10 best states for banking in the MoneyRates.com survey:
9. New York
Here are the 10 worst states for banking from the MoneyRates.com survey:
6. Rhode Island
The 2014 Best and Worst States for Banking study was based on the following criteria:
- Breadth of choice. Based on the number of active banks based in each state, according to the FDIC.
- Stability. Based on the percentage of each state's banks that failed during 2013.
- Quality of service. Based on the average "Power Circle Ratings" of major banks serving each state in the 2014 J.D. Power U.S. Retail Banking Satisfaction Study.
- Competitive rates. Based on the availability of top-10 banks from MoneyRates.com's quarterly America's Best Rates survey, which identifies the country’s top savings account and money market rates.
MoneyRates.com has been a leading source of information on bank rates, personal finance, savings accounts and investing since 1999. The site seeks to provide the highest rates on CDs, money market accounts and high-yield savings accounts. MoneyRates.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to find, research and select the products, services and brands that best meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.