However, it is difficult now for me to see what real good this will accomplish other than to weaken the banks even further than they have been by falling property values and foreclosures already nationwide and worldwide. But, it might start some new trend that could be more helpful than what has been happening for about the last 5 years now.
For example, it might strengthen Credit Unions to the point where they might be able to loan more money to their customers because of all the thousands to millions of people nationwide and beyond who are now taking their money out of banks and putting that money into credit unions. So, this might be a good trend in regard to increasing loans to people in general for everything important in their lives.
The other thing it might do is to get banks to start supporting credit unions in a new way and even encouraging banks to be instrumental in starting their own credit unions as an investment. It could be much like when Savings and Loans all went out of business because of too many loans to Mexico and South America just over 20 years ago now when all those loans defaulted and all the savings and loans collapsed. We also now may see many more banks (especially small ones) collapse here in the U.S. because of what is happening now as people take their money more and more from their banks.
I guess what I'm trying to say is that the net effect of millions of young people and others taking all their money out of banks will create many changes, just not necessarily the ones people want or expect.
Another useful thought that I have for people is that if you take all your money out of a bank and put it into a credit union this is great if you are not someone who travels around much and only stay in that area where you can use the ATM at your credit union. However, if you move around a lot you are going to be paying a lot of fees to use other banks ATMs. So, if you are going to move your money to a Credit union to protest the way banks are treating you and others, it might be more useful to move your savings account to a Credit Union and to keep a checking account with a little money in it at a bank that has offices nationwide and ATMS that you can use for free nationwide. In this way you can protest by moving most of your money in savings and yet not have to pay all the fees for using ATMs not connected with your bank if you travel outside your area. So, there are advantages to keeping at least one small checking account with a bank that you can raise or lower the deposits to for when you travel outside your city or county or state or sometimes your country.
Later a few days: I found this following article that you might find helpful:
http://news.yahoo.com/join-credit-union-boom-170104032.html
begin quote:
Should You Join the Credit Union Boom?
By SUSANNA KIM | ABC News – Mon, Nov 7, 2011Related Content
Should You Join the Credit Union Boom? (ABC News)
Business is booming at credit unions as consumers flee the high fees and low yields at traditional banks, but experts say comparison shopping is vital before switching and there may not necessarily be a credit union for everyone.
As a result of Bank Transfer Day, in which consumers were encouraged to switch to credit unions, 54 percent of credit unions reported an increase in share growth, according to a survey of 10,000 credit unions by the National Association of Federal Credit Unions. At least 650,000 people have switched to credit unions since Sept. 29, according to the Credit Union National Association, after Bank of America announced plans to charge a $5 debit card purchase fee next year. The bank announced it was canceling the fee last week.
About 80 percent of credit unions offer at least one free checking account with no minimum balance requirement and no monthly or activity fee, according to Moebs Services. About 64 percent of the largest U.S. banks offer the same, according to Moebs. Bankrate.com's 2011 Credit Union Checking Survey lists a dozen credit unions of the largest 50 had monthly service fees, though the majority of those dozen waive those fees with policies such as a minimum balance or direct deposit.
Pentagon Federal Credit Union, for example, charges a $10 monthly fee unless a customer utilizes direct deposit with $500 minimum monthly net pay or the checking account has a daily minimum balance of $500.
Credit unions can help consumers save money because they are non-profit, and can pay higher interest rates on savings accounts, and offer lower loan and credit card rates. The median annual fee for credit cards is $25 for credit unions and $59 for banks, and their respective overdraft transfer fees are $6 and $10, according to the Pew Charitable Trusts in May 2011. But savers should take steps before transferring to a credit union, including researching which charge fees or require minimum balances.
Tim Chen, founder of NerdWallet.com, said it is very difficult to generalize about the diverse range of credit unions. But for many, membership eligibility may be restricted by your employer or geographic location.
The world's largest credit union by assets, Navy Federal Credit Union, for example, is restricted to military personnel and their family members. Navy Federal has nearly $45 billion in assets and 3.7 million members since the second quarter of 2011.
Chen said he is an advocate of credit unions more than community banks because the former are not-for-profit organizations that give customers a greater voice. Of the 7,400 state and federally chartered credit unions, most are relatively small, with under $100 million in assets and a few branches. Only about 500 have multiple branches, Chen said.
While convenience of ATM locations may be a cause for concern, many credit unions are a part of larger networks that allow wider ATM useage. Credit unions can be members of large ATM networks, such as Allpoint, which calls itself "America's largest surcharge-free ATM network" with 43,000 surcharge-free ATMs worldwide, including in all 50 states. The company says it owns one out of 12 ATMs in the country. Co-op Network has 28,000 ATMs in the U.S. and Canada. MoneyPass, which says it owns "tens of thousands" of ATMs, is another network popular with credit unions, said Chen.
By comparison, Bank of America says it has more than 18,000 ATMs while Chase Bank has 16,708 ATMs in the U.S.
Greg McBride, senior financial analyst with Bankrate.com, said both credit unions and community banks are "viable alternatives" to large banks. But consumers should research the best for their financial situation, including staying at your current bank.
While many large banks have eliminated free checking accounts, they have also instituted fee waivers.
"Something as simple as direct deposit is enough to avoid a monthly checking account fee. Banks are rewarding relationships," McBride said. "Customers that bring more business to the bank are more profitable to the bank. Therefore, that relationship is rewarded in the same way that airlines reward their frequent fliers with priority boarding and first class upgrades."
Patty Briotta, spokeswoman for the National Association of Federal Credit Unions, said a consumer can find the best credit union for them, such as no-fee checking account or the best car loan.
"That's the attraction of them, because they are customized for customers," she said.
Mike Schenk, economist with Credit Union National Association, said that it pays to shop around for the best financial institution for you.
"I know it's not the most convenient thing to do," Schenk said. "Transferring accounts takes time and effort, but in the long run, there is a payoff."
The Credit Union National Association said savings from credit unions have led to over $6.3 billion in direct benefits that have accrued to the nation's over 91 million credit union members, as opposed to what they would receive at traditional banks, in the 12 months that ended in June. That is the equivalent of $69 per member or $132 per member household.
There are at least three resources to help you find the best credit union for you:
1. NerdWallet.com's Credit Union Finder Chen said Nerd Wallet compiled a list of 413 small credit unions. The site allows you to search by geographic location, credit score and your affiliation with an employer or profession. He said Nerd Wallet has not received any commission from the credit unions in the database.
Nerd Wallet also compiled a list of the best credit unions across the country, many of which offered promotions related to Bank Transfer Day.
Schenk said he recommended aSmarterChoice.org, which is affiliated with the Credit Union National Association. If you have additional questions, you can also call the site's representatives at (800) 358-5710.
3. CULookup.com
The National Association of Federal Credit Unions also has a web tool that allows people to search by address, credit union name or company/affiliation. The site had the highest traffic ever on Saturday, Bank Transfer Day. In October visits to the website were more than five times its monthly average. Visitors to the website last month increased by more than 700 percent compared to October 2010. Also Read
It costs way too much to start and the potential for profits is extremely slim. But there are many way out for this problem.
ReplyDeleteCredit union caimpaigns