Wherever you stand politically on the Occupy Wall Street movement and what it actually means, you can’t deny that taking control of your money is a very “credit union-ish” value.
And it’s one of the few concrete things most of us can do. I don’t have time to go sit on the sidewalk in New York City, but I can make darn sure I’m not allowing a megabank to profit from me.
In fact, it looks like the folks over at MoveYourMoneyProject.com are wholeheartedly backing this aspect of the OWS movement – sending out the message that ordinary people can strike back and telling them exactly how to find a credit union, dispelling CU myths and misinformation, etc.
Some CUs have already reported a surge in new members thanks to new megabank fees, and in fact, a “Bank Transfer Day” has been declared for November 5 (Guy Fawkes day in the UK), giving many a concrete deadline and day to move their accounts.
One thing I find strange is the focus on checking and savings accounts. I understand that they’re the main interaction most people have with banking services, but quite frankly you’re doing BOA or Chase a big favor if you take your checking and savings elsewhere. Megabanks make their real money with credit cards and loans — in order to really strike a blow, you have to take away the interest you’re paying them.
If you’re a CU marketer, are you going to be ready on November 5? Unfortunately, November 5 is a Saturday this year. Are you able to open new accounts on Saturday or do you usually operate with a skeleton crew doing simple transactions? Most importantly, are you going to be ready to tell the rest of the CU story and help your new members truly break free from the megabanks?
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Ah…young Danielson….you have been fed too much of the myth. When you have a heavy fee structure on deposit accounts including transaction fees, minimum balance fees, and relationship fees…there is plenty o’ profit to be made on checking and savings accounts. And keep in mind that most non-interest income (fees) is not sensitive to economic changes like loan demand from interest rates is. That’s why when interest rates start to rise (should this ever happen again in the history of the world), the loans get sold off…there is not margin on fixed rate loans in a rising interest rate environment. Fees, however, don’t care what the interest rate environment is…the revenue is still there.
Good point, Brian. Non-interest income is rather delicious stuff, and properly priced checking accounts can be profitable. So moving the checking account can indeed strike a blow at the banksters.
I think the point still stands that the member is best served by moving as much as possible at or around the same time.
A relevant piece: http://cuhistory.blogspot.com/2011/11/bank-transfer-day-populism-and-strategy.html