A bank for tightwads

Most banks prefer incorporating rock-solid names that inspire confidence like Lincoln, Jefferson, and Washington. But we couldn’t resist telling you about a six-month-old lending institution out in Henry County, Missouri, whose name conveys a more timely and contemporary message. 

It’s the perfect bank for tightwads like us, because it’s named the Tightwad Bank. And it’s located in the village of Tightwad. There really is such a place, and there really is such a bank. 

Don Higdon, the chairman, says the oddball name has drawn media attention from across the nation, which, in turn, has attracted customers from as far away as Carrot River, Saskatchewan, Canada. So far, the bank has nearly twice as many depositors as the town’s population, which numbers 65, according to census records. And Tightwad has brought in $15 million in deposits. Not bad for a bank that hasn’t spent a penny on advertising. 

The tongue-in-cheek name and all the free press has no doubt been a boon to business, though Higdon admits that he gets lots of questions about his bank’s credibility and legitimacy. (“We are FDIC insured,” he insists.) He also has to deal with the sometimes sticky downside inherent in such a provocative name. After all, we’re talking about a bank where people put their money and their trust. 

 

There are negative connotations, Higdon admits, because Tightwad implies frugality and stinginess to most people. All kidding aside, he wants people to know that his definition is a positive one. 

“What we mean by tightwad is a bank that delivers in a cost-efficient manner, a bank where you’ll deal with a live person who answers your phone calls,” Higdon says. “You won’t get a recording.” 

Higdon says he does business the old-fashioned way, with a hand shake and a smile. He doesn’t even mind if customers call him at home in the evening. “We’ll do what we have to to make the deal,” he says. Sounds like Don Higdon is a tighwad after our own heart. 

So if you’re ever in the area, be sure to stop in at “savings heaven on highway seven.” Higdon says you’ll be treated right.