National Bank Transfer Day

November 4, 2011 by staff 

National Bank Transfer Day, This Saturday is the Day of bank transfer, the movement of grassroots organizations in Facebook where customers of big banks plan to move their accounts to credit unions to protest rates and poor customer service, and banks must be happy. Encouraged by the Occupying the protests on Wall Street (although not formally associated with them), the campaign has received much media attention and more than 41,000 “likes” on Facebook. On Thursday, the Credit Union National Association reported that 650,000 people have joined the credit union and Bank of America introduced its May monthly fee and debit cards in late September (now retired). Sounds like a wave of support. But come Monday it is unlikely that banks reeling from the loss of business, and many find that it is actually better.

Unless you’re rich, the banks do not want your business: Banks make money by lending capital of its clients. If a client does not have a lot of money in the bank, then your business does not help the banks. As The New Republic Simon van Zuylen-Wood puts it bluntly:

In fact, many small fry clients can cost checking account, instead of the money the banks. Hank Israel, a finance consultant Novantas, told me that the average audit costs banks somewhere, and 200 a year to maintain, just to pay staff and infrastructure.

With a combination of Dodd-Frank legislation last year, the reduction of overdraft fees and the so-called Rule Durbin suddenly reduced rates for merchants, banks have fewer options to recover costs to waste time waiting to get a better paying job and start storing money with them. In fact, as the Dow Jones Morgan Housel wrote on Thursday, some banks actively try to dissuade customers dropping off minor interest rate on a CD.

Customers must be extremely dedicated to making the change. If you do not like your bank’s safe to say that your bank probably does not like (see above). The most valuable customers who keep large amounts of money in an institution is far less likely to charge little fees innumerable. Bank of America, for example, only the ATM fee charged to customers with balances of less than 20,000 and have no mortgage to the bank. So those who are scaring fees have to be very, very dedicated to making the change this weekend. The Wall Street Journal reported on some of the logistical problems inherent in switching on a Saturday:

Industry executives say the unions, not-for-profit financial cooperatives owned credit of its members are prohibited from selling stock or take on debt, often are not well staffed on Saturdays. This means that new customers can find long lines. Some branches are not open to everyone.

Then there are the technical issues. On the one hand, money can be transferred between institutions of the Federal Reserve Saturday is closed.

Christian Kristen, the woman who started the day Bank Transfer Facebook, says that those who plan ahead and have opened their savings accounts and credit and limited to remove their money from the big banks on Saturday. However, to make the change inspired by the recent rush of coverage Day Bank transfer is the window is almost closed.

Returning customers are at the mercy of banks as some banks are good and others bad, not all credit unions are bastions of financial ethics that make them be. And when customers long out of banks that waive any privilege which may be grandfathered in. This means that if a customer is burned by a credit union and return to his former creditor, the package is restored. In an article in Mother Jones arguing in favor of the bank transfer day, Josh Harkinson referred to the same subject by describing an attempt to get Wells Fargo to stay: “Look at my debit card and tells me I have fortunate to have an account originally opened in Texas, no minimum balance requirement. California Wells Fargo accounts do not offer that. ” The absence of a minimum balance requirement was not enough to Harkinson to stay, but despite that, if you decide to return, he will lose that benefit. And as the Huffington Post points out, just because the credit union says the sign does not mean it is a good one. Harkinson refers to a San Francisco credit union that a user of Yelp called “probably the worst bank in the world” and the Huffington Post noted that some even engage in short-term loans with high interest rates, which can “lead borrowers in a destructive cycle of debt. ” By the time you’ve been with a new institution long enough to realize that I hate, again facing the enormous hassle of changing supplier, and what benefits gained will be lost.

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