On Saturday, tens of thousands will march, protest and move their money out of big banks. But plenty of Americans haven't waited for Bank Transfer Day. For Frank Sheldon of Seattle, his journey to a credit union started in 2008 when his old bank was absorbed by J.P. Morgan Chase.
Like some other recent revolutionary movements, Bank Transfer Day had its genesis on Facebook. But can this grassroots rebellion against the nickel-and-diming of the big banks actually accomplish anything, and how much will the nation's credit unions really benefit?
Between the outcry over Bank of America's new fees and the approach of "Bank Transfer Day," low-profile credit unions have been receiving a lot of attention. But the publicity has exposed a number of commonly held false beliefs about credit unions. Let's debunk a few of the most common.
Credit unions, mid-size banks and online institutions are eagerly stepping up to capture banking customers who are fed up with increasing fees at the biggest banks. And so far, it seems, those big banks don't mind losing their business.
Millions of Americans are disgusted with the big bank status quo, and many are closing out their accounts and moving their money to smaller institutions. It's a good time to do it: Credit unions are waiting with open arms, a customer-centric philosophy -- and incentives.
Americans are growing even more distrustful of their financial institutions. The latest figures from the quarterly Chicago Booth/Kellogg School Financial Trust Index showed that only 23% of those surveyed said they trust the country's financial systems, down from 25% in June.
Many of us have our bank accounts running almost on autopilot: Paychecks go in and bills get paid automatically, and any details we need to deal with are handled easily online. But these conveniences come at a price -- they make it too much trouble to leave a bank, even when its fees get outrageous.
Big Wall Street banks haven't been winning many fans lately with their new fees and constant search for loopholes in the Obama administration's consumer protection laws. Bank of America's new fees on debit cards could be the last straw for some. The alternative many Americans are turning to -- credit unions.
Overdraft fees are like a movie monster that just won't die. No amount of public outrage or regulation can slay the beast. But the banks aren't the only ones casting overdrafts in financial sequels: Truth is, consumers keep breathing life into the overdraft dragon.
You might assume that free checking is one of those banking benefits on the way out, but that's not the case: More than a third of checking accounts charge no monthly service fee. But that doesn't mean that banks don't expect to profit from your checking business. Here are the fees that make "free" a highly inappropriate designation -- and how you can avoid them.
Americans' overall trust in the nation's financial system has dropped from 26% to 20%, a level that matches the lows recorded during the heart of the financial crisis in late 2008, according to the latest results from the Chicago Booth/Kellogg School Financial Trust Index.
