Big Bank Death Watch: Unprecedented Amount of Americans Moved Their Money in 2011
The "Move Your Money" movement, which encourages Americans to move their funds from greedy big banks and into credit unions and smaller banks more friendly to average citizens, made a difference last year. A recent study conducted by JD Power and Associates found that in 2011, almost 10% of bank customers made the switch. The reason, overwhelmingly by a third: big banks imposing ridiculous, unjustified fees upon consumers. The LA Times reports:
Attempts to impose new fees have met resistance. When Bank of America and other large banks moved toward charging consumers to make debit card purchases, the ensuing revolt , including a “Bank Transfer Day” in November, sent a wave of customers bolting for smaller banks and credit unions.
Among banks with more than $33 billion in assets, annual switching rates are now running at 10% or more on average, Power said. The defection rate for small banks and credit unions now averages only 0.9%, a significant drop from 8.8% last year, it said.
The study said that in 2010, the primary reason consumers moved their money was due to moving. Amazing. For more about Move Your Money, including resources for locating a better bank in your area, head over here.