Big Bank Customers Move Their Money And Explain Why

Americans fed up with the lack of financial reform and the behavior of big Wall Street banks are moving their money to smaller community banks and credit unions. Many are doing so as part Move Your Money, a project that encourages account holders to contribute to financial reform by depositing their funds into better-managed institutions.

CNN profiled dissatisfied bank customers in a recent story titled "Take This Bank And Shove It." The customers who were profiled, quit their big banks for multiple reasons:

Excessive fees:

Barry J., who detailed his switch from Bank of America (BAC, Fortune 500) to Southeastern lender Regions (RF, Fortune 500) in an email, said he had just become fed up with the $8.95 monthly maintenance fees on each of his three accounts.

The concept of too-big-to-fail:

[Abel Collins] said he never had a problem with BofA specifically. But he switched from the nation's biggest bank to a local credit union to protest what was happening in the financial sector more broadly, namely... "too big to fail"

Community lending:

John Andersen said he became so fed up with some of the practices of the big banks that he decided to close the KeyBank checking account he used for his Portland, Ore.-based carpet cleaning business... Andersen added that his decision was also driven by a desire to do business with a smaller lender that would make loans that would benefit the local community.

On Monday, the New Mexico House of Representatives voted to essentially move the state's money to community banks and credit unions.

Pledge to Move Your Money!

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Comments

[Gidget1486]

05:34 PM on 02/20/2010

I work for one of the top ten largest banks in the US.

First off , at least in my area, we do care VERY much about our clients, we try to make it feel like a small bank. We treat everyone with caring and compassion and try to do whatever we can to go above and beyond for our clients and are pushed to do so. Infact to enforce customer satisfaction, they give us bonues based on our client surveys, not sales. We know 90% of the clients names when they walk in the door and greet them immediately. We'll research ANY question, get directions, find another bank for you, I mean just about anything we can do for you.

Now on the flip side, our loan department is HORRIBLE. They are rude and uncompassionate.They give the client a bad taste in their mouth in general about the company.

Also, another point to the negative, you will find much HIGHER interest rates on your deposits at a local bank. Our overhead is so high, that we can't afford those great rates, so if your looking to make some great interest, go with community!

I honestly and sincerely believe that my company does genuinely strive to help our clients and not take advantage, I felt that way even before I decided to leave another bank and apply to work for them. (Just giving my view from the inside.)

[mjb5406]

03:38 PM on 02/18/2010

Today, my wife and I moved our accounts from Bank of America to a local Credit Union. BofA has made some changes to their business, calling them "consumer-friendly". As Col. Sherman T, Potter used to say on M*A*S*H, "Horse Hockey!" here's an example: They say that if you overdraw your account by less than $10 they waive the overdraft fee... what they don't spell out is that's a TOTAL amount, so if two checks come in, one for $5 and one for $5.02, for example, for a total overdraft of $10.02, they charge you $70 for them (35 per check). They are too big to NOT fail.

[spinns17]

11:42 AM on 02/11/2010

move your money now
http://www.youtube.com/watch?v=Icqrx0OimSs

[pfunky]

11:33 AM on 02/11/2010

I moved my money from one of the biggies, and am in process with B of A. However, why is there not a bigger push for using CASH wherever possible?!? These banks make TONS from each transaction, whether debit or credit.
Next, how do we move our congress?!?!?!?!?!?!?

[Antifascist-08]

02:09 PM on 02/11/2010

One thing at a time. A movement has started. We need to keep it going.
WE need to fight back. Congress isn't going to help us.

[LiberalScoop]

02:48 PM on 02/11/2010

You raise a valid point: WE need to do things. WE need to make things happen. One of the things that has irked me for the longest time; we expect our government to do all the work while we sit back (oh, I know we don't all sit back, but most of us do).
It's things like moving your money that sends a powerful message that the people are getting very tired of business as usual and we don't know how far we're willing to go, yet, to force changes, but it's coming. People have already refused to pay their credit card bills until their bank lowers their interest rates! That's awesome and it works.
Let's keep it up, folks.

[civilbehavior]

02:56 PM on 02/11/2010

How do we move our Congress?

More than 50% of the American public makes less than $50,000 a year. That's households not individuals.

We need to get that 50% of the American public to understand how much they are not receiving as a result of the protected wealth that has been pushed to the top. This is not a country for the
COMMONwealth. It is for the elite wealth.

If 50% of the people were registered in the Commonwealth party and voted for Comonwealth candidates let the republicans and the democrats split the rest.

Who wins? You want Congress to make laws for the Commonwealth? Then this is where you need to go. Until then you are simple rearranging the deck chairs on the Titanic.

[voteblue4evr]

11:33 AM on 02/11/2010

The thing that's so rediculous about this is that the people behind this agenda think that small banks don't do anything wrong, but I just want to remind everyone that the S&L crisis in the 80s was caused by 'small' banks. Credit Unions can fail, too. Do what you want with your money, but educate yourself on your financial institution and don't just move your money because someone told you to. Don't be sheep.

[mootown]

11:44 AM on 02/11/2010

You can get in your car and get hit by a truck today, too. But that doesn't stop you from TRYING to drive someplace.

Community banks can't hide as much trouble. Word flies fast--believe me. I think people who are doing this ARE doing their homework. I did when I switched to a Credit Union Credit card. My CITIcard is going away soon.

[Antifascist-08]

02:11 PM on 02/11/2010

Your take on the S&L "crises" is pretty lame. The same kind of people who are controlling the big banks now were responsible. That was just a trial run until they could get all their deregulation in place.

[maxhardon]

11:24 AM on 02/11/2010

Well the question here is that when these local banks go broke are they too big to fail?

[mootown]

11:45 AM on 02/11/2010

FDIC--most of us regular folk are protected. Again, why roll over to the big banks and give local banks a shot.

[iamjck]

11:20 AM on 02/11/2010

My good friend works at a local bank where I do business (yes I have accounts at the Big Banks also). He told me that Big Banks like the money being moved to local banks because the local banks "lend" the money back to the Bigs who no longer have to worry about an unstable money pool due to fickle depositors. The spread they generate from this now stable money pool allows them to lend more and larger amounts to commercial and international accounts. The local bank now has a stable source of income by lending to the Bigs.
Be careful of unintended concequences and watch your ATM fees if your local bank is really only local.

[mootown]

11:49 AM on 02/11/2010

Well, duh. One dude knows from what? I know we are getting smashed between that rock and a hard place, but doing something feels better than doing nothing. Small change starts opportunity for big change. Don't be such a downer. Enough of that around.

[iamjck]

01:38 PM on 02/11/2010

It always starts with One Dude, then spreads.
If you value your future and your money, KNOW what to expect. Small change is good. Big change is good. Bad change is always bad for someone, do not let it be you. Protect yourserf and be in control of your credit and money, or give someone else the opportunity to control your credit and your money, but do not cry when they make a mess of what you should have done.

[finwiz]

11:00 AM on 02/11/2010

While moving money from the large banks to credit unions or community banks is very admirable, the fact is it will have little impact on the "bottom line" of most of these banks. Most of the large banks generate the bulk of their revenues from institutional/corporate banking relationships and also from their international operations and not from retail clients.

I work for one of the "large banks" and i can tell that it is not even a blip on their radar. We are more concerned with losing business to the other global banks than we are to the credit unions or community banks.

[espressobeans]

11:25 AM on 02/11/2010

LOL. "I work for one of those "large banks" . . ." funny, I thought that was coming. So get back to work and don't worry about it. I switched to a credit union a long time ago and never looked back. And don't think I won't be asking my partners, my church, my state, my country to do the exact same thing. If you won't do business with main street, we will find someone who will and you can eat snow.

[Sajwert]

01:25 PM on 02/11/2010

I have been with a credit union for over 26 years and never once have I had a reason to regret it. Every member of my family living in this state also bank there and feel the same way. My one credit card is with them, and the interest rate is set and quite low with no charges that seem to blossom with other banks credit cards. Why anyone would bother with a regular bank if they have an opportunity to go with an established credit union is something I will never understand.

[finwiz]

02:54 PM on 02/11/2010

Knock yourself out. Just telling you that these large backs stop caring about the retail customer a long time ago.

[maxhardon]

11:25 AM on 02/11/2010

Which makes me wonder why it is that the big banks are too big to fail. Weren't we told the fairy tale about average people's savings being in danger?

[dewalker]

10:19 AM on 02/11/2010

Last month, I started moving my money from a BoA account to a local bank that supports the arts community in my neighborhood and takes pride in its relationships with individual customers. It has only three branches, one of which has a garden on its urban rooftop viewable from the kitchen window of my loft. By the end of this month, after I have changed all of my electronic bill pay, automatic withdrawal and direct deposit information, the process should be complete. The effort has been worth it. I will no longer be "part of the problem," i.e., no longer participating in a system that is responsible for the foreclosures, unemployment and misery that have our nation in a death grip.

[liveordie]

10:24 AM on 02/11/2010

Fanned!

[spinns17]

11:40 AM on 02/11/2010

x2

[Antifascist-08]

02:14 PM on 02/11/2010

Good for you. Even a green bank! Great.

[ProgressiveChange]

10:12 AM on 02/11/2010

We began moving our business and personal accounts from Wachovia, which was excellent in customer services, to a local community bank last year. Reason: Wachovia was acquired by Wells Fargo. Wells Fargo has disappointed us in the past and its egregioius business practices are worse than BOFA and CHASE.

It is unfortunate that most people are unaware of the fraud and other investigations, fines, penalties, and class action lawsuits, which have been reported for many years, documenting the activities of the Big Banks. Long before the economic collapse, they were notable for their blatant gouging of customers on every product from ATM utilization fees to mortgages. Their hefty advertising budgets seduce a customer base; their business practices have alientated the most discerning and prudent.

[PJMS]

10:01 AM on 02/11/2010

Especially since the Supreme Court ruling I've been thinking that there isn't anything we can do to curb the power of big business. This movement is proving me wrong. It may be just a small glimmer of hope, but it's hope nonetheless.

[hmargret]

10:30 AM on 02/11/2010

the move your money action brings more than a glimmer......don't forget, these big banksters got powerful on the unprecedented money of the Boomer and post-boomer generation savings, checkings, IRA's and 401 Ks.

the moves will change the core deposit index. we CAN, even if Obama WON"T.

right on with your change!

[Sharon1951]

09:44 AM on 02/11/2010

I have always used a small local bank. The major benefit for me has been that they know me on sight, know my name, and if there is a problem, they take MY word for it, and fix it instantly. Two recent examples of the reverse. I have a CD and small money market account in a larger bank that does not know me from a hole in the wall. Two pharmacies double charged me within days of each other. I called and reported the problem, and the bank "investigated" my complaint. Their response was that the charges were legitimate because the pharmacies "said I had been there on both occasions, and had charged the exact same things for the exact same amount of money" exactly three days apart. Um, and the pharmacies were asked to prove this how? Not at all. Their word was good enough for the bank -- and to take the overdraft charges and leave the charges standing. A relative was charged twice for an order on her credit card (from a very large bank). She called and reported the double charge to her credit card company, and they told her that there was nothing they could do about it unless she could prove she didn't order the same item twice, the charges would stand. How do you prove a negative? We are living in an Alice and Wonderland world, where up is down and down is up, and you are utterly powerless.

[mootown]

12:02 PM on 02/11/2010

Correct-we have always banked in community banks. One time, I needed my passport for an emergency on a Sunday, and the president of our bank came in and allowed me access to my safe deposit box. Where else will you get that? We had developed relationship with the people we dealt with through the years. It works.

[pjwrites]

09:42 AM on 02/11/2010

Moved my account this month from BofA to a local credit union. It's been an inconvenience to re-enter my bills and inform creditors, etc., but it feels really great to make a statement in such a small, but hopefully, effective way.

Like Don't Be Foolish above, I am absurdly proud that average Americans are doing what is in their power to do to take back a little control over their lives and futures.

Shunning has always proven to be quite effective in correcting bad behavior.

Good luck, everybody! We can make things happen. Keep the faith.

[Graciesmom]

09:40 AM on 02/11/2010

We do business with a credit union and a local bank too. Our kids have told us of all the headaches they've had with the Big Guys. They have since moved their accounts to local banks. Can't wait until this movement gets big enough to rattle the big banks chain and get some kind of response from them.

[BigCanoe]

09:16 AM on 02/11/2010

I have recently moved $11,500 from my BoA checking account (paying 1/10%) to my local bank's 1.81% 1 year CDs.

Yes, I know that my local bank isn't too-big-to-fail; but like BoA, my local bank has the backing of FDIC insurance.