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devoish (98.78)

OWS Walks Out, but Not Alone.

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November 04, 2011 – Comments (6)

Mayby the Tea Party is going with them, maybe OWS is bigger than just the folks we see on the street, maybe both?

http://www.americanbanker.com/issues/176_214/customers-flee-for-credit-unions-1043783-1.html?zkPrintable=true 

WASHINGTON — An estimated 650,000 consumers have closed their bank accounts and opted for credit union membership over the past four weeks, according to CUNA, bringing the approach to Saturday’s Bank Transfer Day to a crescendo...

...The survey results also show that more than four in every five credit unions experiencing member growth since Sept. 29 attributed the growth to consumer reaction to new fees imposed by banks, or a combination of consumer reactions to the new bank fees plus the social media-inspired "Bank Transfer Day," Nov. 5.

Bank Transfer Day facebook page

http://www.facebook.com/event.php?eid=281139538577206 

I left Citi months ago.

Best wishes,

Steven

 

6 Comments – Post Your Own

#1) On November 04, 2011 at 1:09 PM, kdakota630 (33.35) wrote:

It's too bad that it's not more people, and perhaps started about 3 years sooner (ideally much sooner than that).

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#2) On November 04, 2011 at 1:12 PM, Teacherman1 (48.55) wrote:

So, about one half of one percent closed their bank checking accounts and moved to a credit union.

I think that is more of an event for the credit unions than for the banks.

Personally, I have used a credit union for 20+ years, and find that for the most part, they are able to handle all of my needs.

This is not meant to belittle what happened, but to put it into perspective.

It is also unlikely that most of them were "large" accounts. Most credit unions are not equipped to handle other than consumer accounts.

I'm sure it gave those doing it a sense of satisfaction, but not sure how much of an effect it had on the banks.

JMO and worth exactly what I am charging for it.

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#3) On November 04, 2011 at 2:13 PM, dbjella (< 20) wrote:

I suppose I could look it up on the Google, but when I worked for a federal reserve member bank I was shocked at how many non member banks had accounts.  I was told that the Fed controls the deposit money via the reserve.  I didn't ask if the reserve applied to non-member banks that held accounts at member banks I just assumed it was so.

Do credit unions have to hold their money at a member bank? 

Maybe I am not saying this right, I am not a banker can you tell? 

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#4) On November 04, 2011 at 2:55 PM, devoish (98.78) wrote:

It certainly gave me some satisfaction when I left citibank for a credit union.

By way of comparison 650,000 people switching in four weeks, is more than switched all of last year so I am sure the banks will notice.

The credit union is different in that interest income from lending is paid directly to account holders, not to shareholders, so I get more than my citibank account pays. In fact, they put more money from interest into my account than they take out in fees, and I do not keep very much in there, just my emergency money.

By way of comparison, if I had bought $10,000 worth of BAC stock 10 years ago, instead of earning 2%, there would just be 2% of my money left. But some executive would have pocketed all the $10k I worked for and spent on stock when he cashed in the options he got that year.

Best wishes,

Steven

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#5) On November 04, 2011 at 3:14 PM, wolfman225 (76.88) wrote:

Couldn't it be more in reaction to increased bank fees instituted (or proposed) in response to the passage of Dodd-Frank? 

"The credit union is different in that interest income from lending is paid directly to account holders, not to shareholders, so I get more than my citibank account pays."

In a Credit Union, the account holders are shareholders.  In my Credit Union the accounts are refered to as "Share Accounts"; since it is run as a co-op all account holders are, in fact, the collective owners.  The monies contributed to your account are effectively the same as dividends.

 

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#6) On November 04, 2011 at 11:55 PM, devoish (98.78) wrote:

wolfman225,

It could be in response to finding out about bank fees that used to be hidden before Dodd-Frank.

Best wishes,

Steven

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