CRESWICK residents have achieved a milestone they've been working on for years - establishing a community bank.

The Creswick and District Community Bank Branch was officially opened last Friday morning.

Company chairman Graeme Mitchell said the steering committee was delighted with the opening, which about 500 people attended.

"We are trading well if the first two days of operation is anything to go by," he said.

Mr Mitchell said the bank's establishment was fantastic news for Creswick.

"The steering group has worked together well and achieved a lot in the last two years.

"Finding a building to use was the thing that held us up the most, but we eventually got a purpose built bank up and running and it's working great so far," Mr Mitchell said.

While the town still has a branch of the Commonwealth Bank, locals say there is merit in developing another bank.

About $700,000 was raised to get the bank started, with profits made to be returned to the community.

The operation was set up only after a business plan showed it could be profitable.

The idea is for Creswick and district people to pay their backers, or shareholders, a prudent return, then invest the rest of the profit back into local enterprise, organisations and community groups.

"There's other things around the town that need doing and this gives the town the opportunity to get together and we can achieve those things because the money, the profits from the community bank, go back into the town.

"As a little town, every little bit of money that we can achieve will help the town," Mr Mitchell said.