Why should I move my money?
Not only will you probably get a better deal and more personal service at a community bank or credit union, but you’re also helping take the power away from the “Too Big To Fail” Wall Street banks that engaged in risky financial practices and helped cause the greatest financial crisis since the Great Depression. Plus, you’re helping out your community, since local financial institutions do more lending to small businesses and help revitalize communities by spurring job growth. The money that you deposit in community banks and credit unions stays local and helps build a more vibrant economy. Lastly, by supporting the safe and sound practices of local financial institutions, you are helping to nurture a more stable and responsible financial system for the future.

Will moving my money really make a difference? 

Each individual account is significant to the big banks who make big profits from checking, savings and transaction accounts.  When thousands of people move their money, it creates a wide-spread social phenomenon beyond the amount of money involved. People everywhere are moving their money to small, community-minded institutions and spreading the word around the web. Major news organizations have taken notice, and the effort only gets stronger as more people get involved. Dennis Santiago explains more about how your actions matter here.

Which banks should I be avoiding?
Most people are trying to avoid the six largest banks that engaged in casino-style financial practices (credit default swaps, derivatives trading, etc…) and that are largely to blame for the financial crisis — Citi, Bank of America, JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley. The banks and credit unions we encourage people to look at largely avoided these kind of financial tricks, and then did not reward their executives with massive bonuses.

Now that I’ve got a list of banks and credit unions near me, what do I do?
Stop in and see what they’re about. Talk to an employee to see what services they offer and how they treat you. Different people require different things from their financial institution, so see if your local bank or credit union has the services you need. For some tips and questions to ask visit Solari or see this article from the Dallas Morning News. You can also use FindABetterBank to calculate annual fees based on how you bank (note: their list of banks is incomplete).


My bank isn’t listed. Does that mean it has a bad rating? 

As of the first quarter of 2010 (latest data available), the independent bank ratings firm Institutional Risk Analytics graded almost 5,000 banks between “A+” and “B”.  Because of some research practices and guidelines IRA used to create the zip code search tool, banks that have been opened in the last few years (called De Novo banks) are not currently included in our list. CEO Dennis Santiago details how banks were chosen for the Move Your Money zip-code tool here. If you’d like to do some further research, there are a number of places to look. Other free bank and credit union ratings are available at www.bankrate.com and www.bauerfinancial.com. You can also find ratings for nearby banks at BankFox, which offers a full health report for all the banks in your area. And you can contact Financial Information Systems to get a free report for a bank or credit union.
 

What is a community bank? 

According to the Independent Community Bankers of America, community banks “focus attention on the needs of local families, businesses, and farmers” and “channel most of their loans to the neighborhoods where their depositors live and work, helping to keep local communities vibrant and growing.” Institutional Risk Analytics explains what banks they include in the zip-code tool here. 
 


What are credit unions? How are they different from banks?
According to the Credit Union National Association, credit unions “are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other.”   
 


Can anyone join any credit union?
Not necessarily. Credit unions are organized to serve a specific set of people, which may be based on their profession, location, religious group, or some other qualifier. You should contact your local credit union if you’re uncertain whether you are eligible or not. 
 


Are smaller institutions insured by the federal government? 

Yes. More than 8,000 banks of all shapes and sizes are insured by the Federal Deposit Insurance Corporation (FDIC). Likewise, credit unions are backed by the National Credit Union Share Insurance Fund (NCUSIF), which is managed by the National Credit Union Administration (NCUA). Your account at these institutions is insured up to $250,000.


For credit unions, what do FCU and FISCU mean? 

An FCU is a federal credit union and a FISCU is a Federally Insured State-Chartered Credit Union. The NCUSIF insures all FCUs and most FISCUs. If a credit union is registered with the NCUA, it’s insured. 
 


Have community banks and credit unions accepted federal bailout money? 

Some of them have accepted federal assistance, either for their financial role or under the Making Home Affordable mortgage loan modification plan. If you are curious whether your financial institution is on the list, ProPublica has a searchable breakdown of companies that took money from the financial system bailout here. (Note: this list does not include recipients who have completely refunded the investments.)
 
 
Won’t it be harder to find an ATM affiliated with a smaller financial institution?
Maybe. Some banks and credit unions join up to create larger ATM networks or pay other banks’ ATM fees, but not all of them. Check with yours to see.

Do community banks and credit unions offer online banking?
Many institutions offer online banking services. 
 

What about moving the credit cards, mortgages, and other things I have with the big banks?
Most community banks and credit unions offer loans, mortgages and credit cards to their customers, often at better rates and with fewer fees than the big guys. If you’re looking to transfer debt from one institution to another, it may be possible, but be aware of potential fees and hits to your credit score. Consult with both banking institutions and understand all the risks involved before taking any action.

How else can I get involved?
Join the community! Make your own video on YouTube, connect with other people through Facebook and Twitter, and let us know what other ideas you have. If you’re trying to meet with other like-minded individuals and organize on-the-ground activities, join a local group through our Ning page. Contact your elected representatives, write a letter to your local newspaper, or just talk to your friends and family about the idea. The more people we get on board the bigger this movement can be.


Who are you guys? Are you secretly making a profit off this? 

No. Move Your Money was started when a couple of friends had dinner together and thought of ways to limit the abusive political power of the biggest banks, a problem that has roots in American history going back to the 19th Century. The zip-code tool was generously donated free of charge by an independent and highly reputable bank rating agency, Institutional Risk Analytics, which provides ratings for all FDIC-insured banks to public and private clients, as well as thousands of individual bank customers. Read the story here.