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Bill Cheney

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Bank Transfer Day: The Start of Something Great

Posted: 11/01/11 04:44 PM ET

The movement toward credit unions over the last several weeks has been nothing less than phenomenal. For us in the credit union movement, it is confirmation of our long-standing tenant that credit unions are "people helping people."

But it doesn't have to end this Saturday. As Kristen Christian -- the founder of Bank Transfer Day -- said: "November 5th is merely a deadline goal." (Facebook, Oct. 27)

As far as credit unions are concerned, any day is a good day for a consumer to become a credit union member. Nov. 5 is one good day to join, and we certainly encourage consumers to make the change.

Because when a consumer joins a credit union, he or she takes the first step for themselves, and their families, in moving toward financial freedom.

Consider this: Consumers who join a credit union can expect to save at least $70 in lower rates, higher return on savings and lower or no fees -- just as current credit union members did in the 12 months between June '10 and June '11.

And that's just on average; consumers who are loyal members of credit unions -- utilizing them extensively -- often receive financial benefits that are much greater than the average.

The best news for consumers, however, is that they truly seem to comprehend how they can benefit from credit union membership. The changes over the last several weeks -- since Sept. 29, when Bank of America announced its $5 debit card fee -- tell the story.

Our calculations at the Credit Union National Assn. (CUNA), based on a quick survey of our member credit unions from all across the nation, indicate that consumers have been moving by the tens of thousands -- and shifting their money by the hundreds of millions -- to credit unions over these past four weeks.

From what our member credit unions are telling us, the reason for the consumer swing is clear: Consumers are upset about bank fees; they've just had enough.

And, consumers have also been intrigued by "Bank Transfer Day," another reason our credit unions are telling us their new members are coming in the door.

These new credit union members have made the right choice, because they can now start saving.

In fact, if all of the people signed up to participate in "Bank Transfer Day" on Saturday do so, and remain credit union members over the year that follows, those consumers will save a combined $4.8 million. Combine that with the $5 per month that they WON'T be paying in debit card fees, and you're up to $5.1 million.

But that's just the start. Suppose all of those others who have been invited by their friends to join in "Bank Transfer Day" do, in fact, decide to join credit unions. As of this writing, that's more than 423,000 persons -- who, together, would stand to save $31.7 million in combined credit unions savings and no bank debit card fee.

That's money that goes right into the pockets of consumers -- not into the vaults of banks, or their shareholders' wallets.

However, to everyday working people -- struggling to do their level best in a lackluster economy -- that's real money that may be better spent on their families and their futures. Credit unions are proud to give them that opportunity.

This Saturday will no doubt be an historic day for consumers and credit unions alike. Consumers want to be free of high fees, and credit unions want to help free them.

It's one day for consumers to make a smarter choice. But it doesn't have to end there: Every day is a good day to join a credit union.

 
 
 
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10:30 AM on 11/06/2011
Oh, those wonderful credit unions!
Taxpayer bailout cost so far (and counting): $58 billion. Banks are awful, but at least they have stockholders standing between them and the taxpayer. In credit union failures, the stockholders are bailed out 100%.
Ever looked at a credit union's financials? Of course not. No one has, because they are "member owned", like all ponzi schemes. Good luck trying to find your credit union's financials.
The industry's regulator, the National Credit Union Administration, is more of a trade association than a supervisor, hence the $58 billion.
01:52 PM on 11/04/2011
It is a great shame that Bank Transfer Day attempts to disconnect itself from Occupy Wall Street and states they do not support several in the movement who support them. Bank Transfer Day uses an image that was created by Eddie Colla for the main purpose of supporting Occupy Wall Street. When this was pointed out on Bank Transfer Day's Facebook Page, they erased the comment. Those who support BTD should be aware of their bias and unfounded negative attitudes towards the entire OWS movement.
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Calvin Garner
07:53 AM on 11/06/2011
Boo hoo hoo get over it. That is not the point of the whole thing.
01:27 AM on 11/03/2011
Good article on a timely topic. I'm a fan of credit unions and moved to a great one more than ten years ago now. BTW, in the second sentence, the word "tenant" should be "tenet."
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HNC
05:10 PM on 11/02/2011
They make it sound so easy to Join a credit union...but its not. I live in NYC and if are not a civil servant, work for a union, etc...it is very very hard to join one. Is there anything in place for this on Nov. 5th?
09:37 PM on 11/03/2011
Credit Unions used to be restricted in terms of whom they were allowed to be members. Something changed a few years back, and many if not most dropped most of their restrictions. Some may still have restrictions because of their affiliation with some sponsoring organization, perhaps. Just look around. You should be able to find one. Also, check out this site:

http://ncua.gov

There's a locator on the site that might help.
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HNC
04:00 PM on 11/11/2011
Many many thanks!
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Razorback Guy
Reality is overrated...
04:42 PM on 11/02/2011
Today I made my stand against the megabanks. I set up an account and am transferring my funds From Wells Fargo to Veritex Community Bank (greater Dallas area). When I got there the branch manager already had a folder started for me (I'd called the day before and mentioned I'd be in today). The peope there were were wonderful, everyone made time to introduce themselves. They offered me something to drink while I filled out the paperwork (have never been offered anything by the big banks), and checking is 'no fee', online access with Quicken is 'no fee'. I left with a great folder with info about their banking services and knew I'd made the right decision! Oh, and one of their regular events: They will have Iron Mountain document disposal company with their trucks available in the bank parking lot for two days this month where people can bring in personal documents to be shredded in front of them. There will also be sandwiches and softdrinks served. Wells Fargo and it's ilk have never offered any services for customers and community like this (it'd take money out of managers' and investors' pockets to pay for it).
10:42 AM on 11/06/2011
Take a look at Veritex's financials. They lost their shirt last year. I hope you are under the insured amount. The history of Texas community banks is hair-raising; they should have to pay a higher premium to the FDIC.
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Aurealeus
A Little Off Center
09:08 AM on 11/02/2011
CAMPAIGN:

Hit Wall Street where it hurts and move your money out of the big banks into small community banks and Credit Unions.

I moved mine over a year ago. Best financial decision I ever made.
.
08:51 AM on 11/02/2011
It's so easy to switch to a credit union too. In fact, we wrote a quick song about it:

http://youtu.be/KC8DIETX--k

Enjoy and share!
06:01 AM on 11/02/2011
I switched banks after Suntrust Bank announced the new checking account fee and the debit card fee. I called them last summer when I first received the letter announcing the new fees and said I wasn't going to pay the new fees and that I was closing all my accounts. The representative on the phone didn't seem to care so I assumed Suntrust didn't care either. I did nothing but go to a small community bank and started opening accounts and transferring money from Suntrust to the community bank. Actually the community bank offered more perks than Suntrust did. It took me a month to transfer everything over but I'm glad I did. Now Suntrust and the other big banks have done a NetFlix maneuver and backed down off the fees at the last minute. To hell with them. I'll never go back to Suntrust and they have lost my business forever. If they want to increase fees during bad economic times, they don't deserve anyone's business and should be brought down to their knees. I hope every one of these big banks go out of business.
01:50 AM on 11/02/2011
I guess i am not the only one thinking about switching to a credit union!
01:04 AM on 11/02/2011
It's all well and good to move your money to a Credit Union to save $5 a month as a way to "make a statement", but there's a far better reason that seems to be getting overlooked.

Credit Unions are MEMBER-OWNED AND OPERATED! That's right ... if you're pissed off with getting screwed by "Big Banks" and never having a say, JOIN A CREDIT UNION. They are locally owned and operated, and are NOT controlled by rich out-of-state investors, some humonguous holding company, or a gaggle of Chinese investors.

As a member of a Credit Union, YOU HAVE A SAY in how it's run. One member, one vote.

I hope that's worth a little more peace of mind than saving $5 a month in fees.

Also, not one single Credit Union has imploded as a result of making stupid home loans. In fact, less than 1% of Credit Unions have any significant exposure to bad loans.

And Members who got a home mortgage from their CU don't need to worry about who "owns" their property, because most CU's keep the paper themselves.
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Aurealeus
A Little Off Center
09:10 AM on 11/02/2011
My reasons exactly for joining my Credit Union two years ago.

CAMPAIGN: Hit WS where it hurts and move your money out of the big banks into small community banks and Credit Unions.
.
02:28 PM on 11/03/2011
David, this all sounds nice, but there are a few points that I think are being overlooked. You say that less than 1% of credit unions have exposure to bad loans. It will be interesting to see how "strong" credit unions will be viewed after the OCC has a look at them. The OTS was very lax and there are many credit unions who are nowhere near prepared for an exam by the OCC. As of now, it's the management of the individual bank who are identifying bad loans and risks - wait until a real regulator looks over them. Many credit union managers have no idea what they're in for.

Credit unions, much like many community banks may retain the servicing of the home mortgage loans they originated, however, they are not housing 30 year fixed rate money on their balance sheet. I think your last paragraph is misleading as that's truly not the case. The vast majority are selling those loans to a GSE.

I will agree that credit unions are a much better alternative to the behemoth banks, however, I feel that the community banking model is best. For the most part, community banks are well capitalized and they are also held to higher standards from a regulatory standpoint then the credit unions.

Find a good community bank in your area and forge a relationship that will be mutually enjoyed for years. Community banks also pay federal income tax, something that credit unions do not do.
11:58 PM on 11/01/2011
Yes, it is the start of something great indeed!
We consumers have had enough. $25/month fee for a "free" checking account if your balance falls under some predetermined amount? $5 debit cards?
We have had it.

Come on over! :) Being a member of a Credit Union is GREAT!
http://www.CreditUnionRevolution.com
09:51 PM on 11/01/2011
Not sure why Congress did a big new crazy quilt of legislation instead of just bringing back the classic Glass-Steagall. Bet it was because individuals in Congress and the lobbyists and banks wanted to game the situation and write new loopholes. Will feel sad if mainly little people lose their jobs because of bank transfer day, but communities will be strengthened. In my little town, the local credit union always chips in generously to local charities and contributes both money and sweat equity.
07:09 AM on 11/02/2011
If people lose their jobs at banks they can presumably get jobs at the credit unions which will need more staff. Except unlike some banks, credit unions seem to hire in the US.
09:46 PM on 11/01/2011
Applied for credit cards with a local credit union early last week after hearing about Bank Transfer Day. Received my credit cards in the mail yesterday and promptly got them confirmed via telephone. Started using my new cards today. Downsizing the big Wall Street banks one little account at a time.
08:35 PM on 11/01/2011
Not all credit unions are created the same. Make sure to look for credit unions with reward checking accounts. This September Huff Post article has a good overview of these types of accounts
http://www.huffingtonpost.com/michael-mcgown/checking-account-interest-rates_b_958396.html
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Debbie Wathen Clute
08:06 PM on 11/01/2011
At the moment we deal with a small community bank, but will transfer to a credit union if need be.