Saturday, November 5th was Bank Transfer Day. Over 40,000 new members joined credit unions all over the country that day. Since September 29th over 650,000 people have ditched their banks and opened up memberships at their local credit unions. Ever since the big banks announced new fees on debit cards and checking accounts people have been in an uproar. So much of an uproar infact, Bank of America and Wells Fargo decided to ditch their debit card fee idea. The question of where will banks make up lost profits still has not been answered. Many wonder what will be next higher loan rates, lower savings rates, or even increased fees across the board. Why wait to find out?!
November 5th is over, but that was just one day. At your local credit union every day is Bank Transfer Day!
Now I would like to throw in my two cents into the conversation. The purpose of a bank is to make a profit and create a return on the money they invest. However, banks have shareholders. The very nature of shareholders is to demand higher profits so they can get bigger payouts. This is a struggle that companies work hard to try and balance. Do they listen to their customers or do they listen to their shareholders?
I say why even bother waiting to see if a bank is going to be in your favor or the shareholders? Your local credit union doesn’t have shareholders to pay out to. By default a credit union works in their members’ best interest.
Do you still have any apprehensions about joining a credit union? If so, what are they?
Chris, VP of Unbanking
P.S. – I’m having a contest on my Facbook page! Share a money saving tip for a chance to win a $50 gift card! Hurry the contest ends on 12/09/11!