A Mutually Beneficial Relationship: The Benefits of a Mutual Bank

All banks are the same, right? Not at all. In fact, that could not be further from the truth. There are large, national banks with familiar names, regional banks that can be found in a particular part of the country, and local banks that have a very concentrated geographical footprint. East Cambridge Savings Bank falls into the third category. What also sets us apart is that we are a mutual savings bank. There are many benefits of banking with a mutual savings bank – including improving the financial wellbeing of yourself, your neighbors, and local businesses.

What is a mutual savings bank?

By definition, a mutual savings bank is not a publicly traded company and does not have investors – in other words, you cannot buy and sell stock in a mutual bank the way you can with a large publicly held national bank. Mutual banks have been around since the early nineteenth century and are still common in New England. Our Bank was founded in 1854 and has been operating with the same name and charter since then; in fact, we have never been acquired or been sold to a larger bank. Since East Cambridge Savings Bank is a mutual bank and does not have shareholders, we reinvest profits locally through mortgages, loans for small businesses, and supporting nonprofit organizations.


A symbiotic relationship: the more the community works with a mutual bank, the more we can do for the community:

Favorable (Lower) Fees:

With no shareholders to report to, we can prioritize steady and stable growth. It also means that we are not driven to rely on fee income to increase our profits. Overall, mutual banks have lower fees and more flexibility to structure our fee schedule in a way that does not negatively impact our customers. According to the Independent Community Bankers of America, local banks have “lower average checking fees, lower overdraft fees, lower foreign ATM fees, and lower balance requirements to avoid checking fees.”



 


Innovative Programs to Support Home Ownership:

We are fortunate to live and work in great communities but buying a home in Greater Boston can mean coming up with a hefty down payment. This puts homeownership out of reach for many of our neighbors. We’re proud to participate in two programs in partnership with the Federal Home Loan Bank of Boston: the Housing Our Workforce (HOW) program and Equity Builder Program (EBP). Both initiatives provide down payment, closing costs, and other homebuyer assistance to borrowers who meet certain income eligibility requirements. We also participate in the MassHousing ONE program which offers mortgages to first-time buyers, and the Community Heroes program which helps first responders, nurses, and teachers attain a mortgage. You can read about these and other programs that will help you move into your first home on our Community Lending Programs webpage.



Mutuality Means Giving Back:

For the last five years in a row, East Cambridge Savings Bank has been named one of the Top Charitable Contributors in Massachusetts by the Boston Business Journal as measured by financial support and volunteer hours. The Bank and its Charitable Foundation (the East Cambridge Savings Charitable Foundation) are focused on supporting organizations that positively impact the lives of our neighbors and community residents. Since the Charitable Foundation was incorporated in 1997, the Bank has contributed millions to support affordable housing, education, family and youth services and elder services. We are incredibly honored to partner with nonprofit organizations like Bread of Life in Malden, Somerville-Cambridge Elder-Services, Homeowners Rehab, Inc. in Cambridge, and Greenroots, Inc. in Chelsea. These are just a few of the many organizations we support on an annual basis, not only with financial contributions, but through volunteering, board service, and in-kind donations. To learn more about the Bank’s charitable and corporate giving, click here.



Enriching our Customers and Communities Through Education:

Mutual banks exist for the betterment of our customers and communities. This includes providing educational opportunities for people in all stages of life. East Cambridge Savings Bank provides a comprehensive series of financial education courses (all free) for students, prospective homebuyers, and senior citizens. Topics include teaching children to save, applying for your first mortgage, and identifying and preventing financial scams. To foster the next generation of local bankers, we operate an educational training facility at Cambridge Rindge and Latin School. Students take a course in banking and operate a fully operational branch at the high school during the academic year. After graduation, we offer these young people a job at the Bank so they can gain real-world work experience. Several students who have completed this program still work at the Bank today. We know that an educated customer has the power to make better financial decisions. To learn more about our community education initiatives or to request a complimentary workshop for your school or organization, click here.