Banks vs Credit Unions

[Topaz]

In the US, groups are calling for people to withdrawal their money from the banks and go to credit unions or others. The profits the banks are making from their customers is one of the main reason for this move. I just wonder though, especially in the US, if this wouldn't make the financial problems worse? I believe that the Federal Reserve Bank is one of the most corrupt banks in the world. So, do you think this is a good idea and would you do it? http://ca.news.yahoo.com/bank-transfer-day-occupy-backed-assault-big-banks-210211602.html

[Rick]

I personally already know of 12 individuals who have done it besides myself.

Remember the days where you used to be able to get a print out of your recent transactions without having to pay a fee...

[Smallc]

Remember the days where you used to be able to get a print out of your recent transactions without having to pay a fee...

Why would I need to do that? I can go on the web and see them right now.

[blueblood]

Why would I need to do that? I can go on the web and see them right now.

Or wait a month for the mail...

Personally I do business at both and use whatever services are to my advantage.

[Rick]

Ah yes, the right wing, big money loving circle jerk is forming.

Right on cue.

[GostHacked]

I am debating switching to a credit union myself. Seems to be a safer entity to hold your money. The do not work liek a traditional bank.

[jacee]

Meanwhile, supporters of the Occupy Victoria movement rallied in Centennial Square on Saturday then marched in an effort to “occupy the banks” Saturday afternoon.

About 150 people listened to speakers in Centennial Square who spoke about social justice and financial reform then proceeded to the intersection of Douglas and Fort streets where three banks are located. Security guards at Royal Bank and TD bank locked their doors as protesters tried to enter, waving their client cards and indicating they wanted to shut down their account. People were chanting “unlock the doors” as a security guard stood in the Royal Bank foyer.

The People’s Assembly of Victoria said in a press release that Nov. 5 is International Bank Transfer Day “which seeks to shift our funds from the for-profit banking institutions in favour of not-for-profit credit unions, sending a clear message that conscious consumers won't support companies with unethical business practices.”

[bush_cheney2004]

In the US.... especially in the US....the Federal Reserve Bank....So, do you think this is a good idea and would you do it?

No....this is Canada!

Edited November 6, 2011 by bush_cheney2004

[Bonam]

I switched when BoA announced the debit fee. Even though the debit fee has been cancelled, the credit union (BECU) still offers better terms and better services. Higher interest on savings, ability to remotely deposit checks from a scanner attached to my computer and faster deposit clearing, no minimum balance to avoid monthly account fee, among other things.

As for how it impacts the banks and the economy, well, I couldn't give a rats ass If banks start feeling pressure from people switching, they will offer more competitive products or they will fail. Unless the government decides to make a mockery of the free market system yet again and bail them out.

Edited November 6, 2011 by Bonam

[bush_cheney2004]

...As for how it impacts the banks and the economy, well, I couldn't give a rats ass If banks start feeling pressure from people switching, they will offer more competitive products or they will fail. Unless the government decides to make a mockery of the free market system yet again and bail them out.

Right...it's all good...competition is always good that way. Bring it on. Credit unions and thrifts use to have restrictions for opening accounts based on employment, lack a full suite of products/services, and less ATM access.

[maple_leafs182]

Unless the government decides to make a mockery of the free market system yet again and bail them out.

There is no yet again, they would just be continue to make a mockery of the free market. There is no such thing as a free market, it doesn't exist, not in Canada, not in America, not anywhere.

[jacee]

I switched when BoA announced the debit fee. Even though the debit fee has been cancelled, the credit union (BECU) still offers better terms and better services. Higher interest on savings, ability to remotely deposit checks from a scanner attached to my computer and faster deposit clearing, no minimum balance to avoid monthly account fee, among other things.

As for how it impacts the banks and the economy, well, I couldn't give a rats ass If banks start feeling pressure from people switching, they will offer more competitive products or they will fail. Unless the government decides to make a mockery of the free market system yet again and bail them out.

Ditto the "couldn't give a rat's ass".

It would be HILARIOUS if the big five banks started squealing for bailouts from us taxpayers, because their customers - ie, us taxpayers - have 'bailed out'.

I suspect us small customers won't affect them much, but it'll sure give them a very public black eye!

Edited November 6, 2011 by jacee

[Shady]

Remember the days where you used to be able to get a print out of your recent transactions without having to pay a fee...

Omg, do you still own a VHS recorder and one of those rotary dial phones too?

[Boges]

If you don't like bank fees you have PC Financial and ING.

But good luck finding an ATM if you need cash.

[Bonam]

Right...it's all good...competition is always good that way. Bring it on. Credit unions and thrifts use to have restrictions for opening accounts based on employment, lack a full suite of products/services, and less ATM access.

Used to. Not so much anymore. The products/services available from many credit unions today are just as extensive as the major banks, and ATMs are pooled among most of the US's credit unions, providing convenience of access that is up to par with the major banks. Anyway, banking is shifting rapidly away from in person and ATM interactions towards online banking. And trust me, Bank of America's online banking system is no gem. It can be, and is, easily outdone by many credit unions out there, including the one I switched most of my business to.

Anyway, I have no fundamental beef with banks (as many here seem to), I'm just always on the lookout for better deals, better products/services, better rates, etc. Major banks seem to have lost their advantage. Credit unions and online banks have caught up in terms of functionality and convenience, while continuing to offer lower fees and better rates.

Personally, I think it's a good thing if the major banks decline a bit. We shouldn't have institutions that are "too big to fail". Better chop them all down to size, so if some fail, it's no big deal, and doesn't inspire idiotic political leaders to bail them out.

[bush_cheney2004]

Used to. Not so much anymore.

For sure...credit unions have come a long way since then. They have not completely outgrown their previous perception however.

Anyway, I have no fundamental beef with banks (as many here seem to), I'm just always on the lookout for better deals, better products/services, better rates, etc. Major banks seem to have lost their advantage. Credit unions and online banks have caught up in terms of functionality and convenience, while continuing to offer lower fees and better rates.

"Banks" can mean a lot of different things...the old days of a consumer oriented passbook account are long gone. They even had cute little Christmas savings club accounts!

Personally, I think it's a good thing if the major banks decline a bit. We shouldn't have institutions that are "too big to fail". Better chop them all down to size, so if some fail, it's no big deal, and doesn't inspire idiotic political leaders to bail them out.

I was in my bank branch on Saturday to machine count coins, which now has an outrageous fee for non customers. Anyway, a customer wanted to close her account because "free checking" had become $4.95/month checking if not used for a minimum number of transactions. I could sense her fundamental rejection of fees for access to her own money, regardless of the checking service. It's something that American consumers, at least, will not embrace easily. The banks are getting squeezed for revenue producing products, some of which is needed to offset defaults.

Disclaimer: I own 1000 shares of BoA!

[jacee]

I haven't seen any comments from the banks yet, but it appears that the bank transfer movement is quite successful.

http://www.forbes.com/sites/moneywisewomen/2011/11/04/will-bank-transfer-day-really-change-anything/

The 80,000 consumers who have pledged to move their money won’t break a sweat on banking executives’ brow quite yet. To put it in context, that’s less than 1 percent of Bank of America’s 57 million customer base. However, if all of those consumers encouraged four or five friends to join BTD and 400,000 consumers hopped the bandwagon, that’s the kind of hole in big banks’ pocket to garner attention.

But they also reported ...

And so far, at least 650,000 consumers nationwide have joined credit unions and helped add $4.5 billion in new savings accounts, reports CUNA. With four in every five credit unions reporting noticeable member growth ...

So ... either another 400,000 need to switch, and may have already on Saturday, OR the 400,000 needed for the banks to take notice has already been surpassed.

I think this is an excellent measure of the attention people are paying to the OCCUPY movement and the ssuccess in also getting the finance sector to pay attention.

Edited November 7, 2011 by jacee

[bush_cheney2004]

...I think this is an excellent measure of the attention people are paying to the OCCUPY movement and the ssuccess in also getting the finance sector to pay attention.

Which nation are you talking about?

[Bonam]

Disclaimer: I own 1000 shares of BoA!

I made a good bit of change shorting BoA myself

[bush_cheney2004]

I made a good bit of change shorting BoA myself

Right...I was waiting for an entry point and moved when Buffet did.

[Bonam]

I was in my bank branch on Saturday to machine count coins, which now has an outrageous fee for non customers. Anyway, a customer wanted to close her account because "free checking" had become $4.95/month checking if not used for a minimum number of transactions. I could sense her fundamental rejection of fees for access to her own money, regardless of the checking service. It's something that American consumers, at least, will not embrace easily.

Indeed, and it's not something they should have to embrace. For one, the cost of maintaining a typical consumer bank account likely amounts to not even pennies a month, let alone $4.95. It's one more entry in a giant computerized database. Everything is automated. There is no reason for banks to have even 1/10th as many employees and offices as they do. The whole structure is vastly bloated, less efficient than even a government bureaucracy. In the current market, banks should be looking at cutting costs, not adding new fees.

[Bonam]

Right...I was waiting for an entry point and moved when Buffet did.

The deal Buffet got isn't accessible to us mere mortals. What the deal did do is devalue the rest of the stock, since they're gonna be paying Buffet huge dividends, tying up their cash flow which could otherwise be used to improve their business or to pay dividends on common stock.

[bush_cheney2004]

.... The whole structure is vastly bloated, less efficient than even a government bureaucracy. In the current market, banks should be looking at cutting costs, not adding new fees.

That is certainly part of the problem...their business model has not changed fast enough. I always loved the banking experience, so honorable and "private" for even my tiny teenage money. We had little passbooks to make registry entries just like the big guys. A check drawn on a bank use to mean something. Then the machines and software came...depersonalizing the entire experience...we literally became numbers. Checks were now more of a nuisance than an honorable service.

Some banks are walking away from consumer products in favor of commercial accounts...a long way from this:

[bush_cheney2004]

The deal Buffet got isn't accessible to us mere mortals. What the deal did do is devalue the rest of the stock, since they're gonna be paying Buffet huge dividends, tying up their cash flow which could otherwise be used to improve their business or to pay dividends on common stock.

Right, but I figured that Buffet had confidence in the stock to eventually recover, despite Countrywide Financial. So far the price has been flat, but my time horizon is out a bit. Dividends are back....

[Bonam]

That is certainly part of the problem...their business model has not changed fast enough. I always loved the banking experience, so honorable and "private" for even my tiny teenage money. We had little passbooks to make registry entries just like the big guys. A check drawn on a bank use to mean something. Then the machines and software came...depersonalizing the entire experience...we literally became numbers. Checks were now more of a nuisance than an honorable service.

I guess I'm too young to have experienced this romanticization of the banking experience. My bank account is just a number, and as long as all the numbers that go into and out of it are correct, at a minimal (preferably zero) cost, that's all I need or want from the bank.

Some banks are walking away from consumer products in favor of commercial accounts

Yes, it's often much easier to foist an overpriced and unnecessary product on a representative of some company following their boss's orders than on someone actually looking after their own money. The amount of useless overpriced junk I've seen companies we deal with using blows my mind. Like teleconferencing software that costs tens of thousands and has countless problems, lag, poor quality, etc, when one could be using one of any number of vastly better and completely free services (google, skype, etc).