Stacy Mitchell, senior research for the New Rule Project’s Community Banking Initiative, suggests that people look at where they are borrowing money just as much as where they are depositing it:
Credit cards are one place to start. About three-quarters of community banks and just over half of credit unions offer credit cards. Unlike big banks, these smaller institutions generally do not view their credit cards as major profit centers (you have to do a lot of volume in credit cards to make real money), but rather as a service for customers with whom they often already have a relationship.
That means that the fees and interest rates are often lower. Although data for small banks is hard to come by, a recent Pew study compared a group of credit unions with the largest banks and found that the credit unions had significantly lower interest rates, penalty fees that were half the cost, and “fewer dangers associated with unfair or deceptive practices.”
Heather Lynn was charged by her big bank for donating to charity, reports theHuffington Post. She gave $10 to the Yele Haiti Earthquake Fund and was charged a three percent “international service fee.”
“I called customer service to ask if they were waiving fees like Visa and Mastercard did for Haiti relief funds, but the unsympathetic customer service representative said ‘No,’” Lynn told HuffPost. “I just don’t understand how a bank can make a profit from a tragedy, let alone get away with it.”
Lynn, an art major at Old Dominion University in Norfolk, Va., immediately moved all her money to the Bank of Hampton Roads, a local community bank, and created a Facebook page to raise awareness of Wachovia’s policy. The page, called “Wachovia = Fail,” attracted more than 200 “fans” in a week and a slew of comments from people who are angry over Wachovia’s ways of business.
One more account moved! Lindsay blogged about closing down her Wells Fargo account and moving to Kaiser Federal. She even got a mug at her new bank:
Closing my account was pretty painless, though it did require careful timing. Like a lot of people, much of my life is tied up in direct deposits and automatic online bill pay, so I had to make sure that all of that was taken care of before I closed the account. I also made sure to get enough cash to tide me over until my new ATM card arrived, and I got a cashier’s check issued to pay my February rent. With all of that taken care of, I just walked into my branch, sat down with a banker, and was an ex-Wells Fargo customer within about fifteen minutes. They didn’t seem sad to see me go, though the banker did ask me why I was closing my account. I told him the truth. Hopefully a lot of other people will too.
KARK 4 Newsin Arkansas picked up on the Move Your Money trend. Reporter Lauren Lea asked locals about the idea and weighed the pros and cons of small banks. Garland Binns, a bank attorney, advised that “in deciding whether you want your money in one institution versus another institution you should look at your own personal needs.”
Rep. Jan Schakowsky (D-Ill.) talked to MSNBC’s Dylan Ratigan about why she moved her money from Bank of America to her local Devon Bank: “Individuals can do something about it. We don’t have to live with these abusers.”
Legislators can move more than their money — they can put their tax revenues into small banks and credit unions, too. It empowers the local economy and puts a real confidence in community businesses. Arthur Delaney reports for the Huffington Post that Brian Egolf, a state representative in New Mexico has proposed that his state move its money to community banks or credit unions. He said the Move Your Money effort “made a lot of sense.”
Egolf said the account, which is essentially the state’s checking account, holds $1.4 billion and is managed by Bank of America. Egolf’s bill directs state officials to study the feasibility of dividing up the account and distributing it between community banks and credit unions throughout the state. He said he discussed the measure with Gov. Bill Richardson (D) for an hour on Thursday, and that the governor supported the measure.
Egolf said moving state funds into local banks or credit unions would benefit the New Mexico economy by freeing up local credit. “The potential size and impact of moving this money is monumental. The biggest bank in the state right now has $2 billion in assets.”
According to the SFReeper.com, the proposal is attracting fans. Dozens of New Mexicans have taken to the state Capitol to show their support
Hesitant to move your money? Something you’re worried about? See if it’s in our FAQ section. If not, drop us a line. We’re working with some experts to explain how your money actually makes a difference and we’d love to address some concerns.
The Huffington Post reports that Mike Iacuessa had a negative account when he left Wells Fargo. A bank representative reached out to him and offered to eliminate the fees if he came back and opened a new checking account. Iacuessa went back, but got burned anyway:
If Wells Fargo notified Iacuessa upfront that he’d be liable for the $205, his balance statement shows that the bank waited until Jan. 6 to actually take the money. Iacuessa didn’t find out until after he received a letter informing him of two overdraft fees from Jan. 8. The involuntary payment left the account $43 short when a rent check cleared that day. Two subsequent transactions for less than $10 each wound up costing an additional $70.
“It was as if somebody broke into my house and stole my guitar,” said Iacuessa. He didn’t see the overdrafts coming because an ATM receipt from Jan. 8 (which he shared with HuffPost) shows he had over $1,000 in his account. His monthly balance statements show that the charges from Jan. 8 held until Jan. 11, after a rent check had already put him in the red. (To make things even more confusing, Iacuessa’s online statement says the overdrafts cost $25 each; the notice he received in the mail said they cost $35 each.)
Tim Knight at the trading blog Slope of Hope likes to rail against the big banks, so he finally “took the plunge” and switched his bank account away from Bank of America to Northern California’s Borel Bank. Here he is with his new banker, Tom Fehrenbach.
The bottom line is this – there’s no shortage of huffing and puffing on Slope about the banks. If you’re serious, then do something about it! My account isn’t going to mean that much to Bank of America, but it’s six-figures large, and that means there’s a seven-figure amount that they can no longer lend out (ahem, not that they’re lending much anyway these days). Take action! Leave your big bank! Take a stand! Move Your Money!
Brian, fed up with years of abuse and negligence from Wells Fargo, heard about the Move Your Money campaign and decided enough was enough. He opened an account at FirstBank, the largest locally-owned bank in his home state of Colorado, and filmed and blogged about his experience:
A week later he closed his account at Wells Fargo, his former bank of 15 years.
Brian recounts the full story on his blog, including why he chose FirstBank and how Wells Fargo stole his saxophone in 2002. He also includes this clever analogy:
Think about it. Imagine yourself walking into a restaurant only to be greeted by a gum-smacking tween-ager twirling her hair. She’s talking to a “Chad” of a waiter and takes her sweet time saying hello to you. She takes you to an awkward table near the kitchen and you sit there without water for a good ten minutes. Finally you order your food, which takes way too long to come out, from a waiter with cigarette breath and then when you eat it you realize it’s cold. No one asks you how your meal is and then suddenly you’re presented with a check that includes mystery items that you never ordered. Would you sit there and pay for the meal, or would you ask for a manager to complain? Would you then come back repeatedly, ordering the same meal from the same waiter, or would you refuse to return to that establishment and tell all of your friends how awful it was?
are one place to start. About three-quarters of community banks and just over half of credit unions offer credit cards. Unlike big banks, these smaller institutions generally do not view their credit cards as major profit centers (you have to do a lot of volume in credit cards to make real money), but rather as a service for customers with whom they often already have a relationship.
pretty painless, though it did require careful timing. Like a lot of people, much of my life is tied up in direct deposits and automatic online bill pay, so I had to make sure that all of that was taken care of before I closed the account. I also made sure to get enough cash to tide me over until my new ATM card arrived, and I got a cashier’s check issued to pay my February rent. With all of that taken care of, I just walked into my branch, sat down with a banker, and was an ex-Wells Fargo customer within about fifteen minutes. They didn’t seem sad to see me go, though the banker did ask me why I was closing my account. I told him the truth. Hopefully a lot of other people will too. 
upfront that he’d be liable for the $205, his balance statement shows that the bank waited until Jan. 6 to actually take the money. Iacuessa didn’t find out until after he received a letter informing him of two overdraft fees from Jan. 8. The involuntary payment left the account $43 short when a rent check cleared that day. Two subsequent transactions for less than $10 each wound up costing an additional $70.
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