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Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

apdst said:
What's going to happen when the credit unions--because of the sudden massive increase in volume--have to hire more personel to handle the increase and then have to start applying the same fees to afford the increase in payrolls?
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Considering that credit unions for the most part don't get taxed like banks, they have a sizable advantage. Furthermore, increasing deposits itself doesn't require more staff, and in today's world where many people bank online the additional costs from more customers isn't that sizable. They'll probably just amp up the amount they invest and increase loans, but that's about it. There isn't a good reason to foresee a big spike in operating costs. This isn't 1950 where most things were still done by hand.
 
DiAnna said:
If the big banks are driven to insolvency... then what? The taxpayers are left to pay off the FDIC insurance on the money lost by people who have CD's, IRA's, 401K's and savings accounts.
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That really depends. If this is done over time, then either the big banks will get die or will change their behavior to either something that doesn't piss off consumers or become very focused banks, like focusing on corporations or high net individuals. IMO, lots of small banks is preferable to big banks as the damage one bank can do on the system is real minimal. If the decline is done slowly, big banks will restructure and no one should be on the hook other than the bank's management and board.
 
FYI. basically the only reputable bank offering a "decent" savings rate is American Express FSB. 1%. Ally and ING cut their rates to 0.9%. Most savings and big banks are between 0.5~0.4%. I moved a flaggable amount of cash out of my ING after the rate cut.
 
spud_meister said:
People wil move to another credit union with smaller fees, and the bigger ones will shrink again. It'll be a never ending cycle.
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And, before you know it, everyone will be charging fees and what will have been accomplished? The fees exist because of the government, you won't escape them.
 
obvious Child said:
That really depends. If this is done over time, then either the big banks will get die or will change their behavior to either something that doesn't piss off consumers or become very focused banks, like focusing on corporations or high net individuals. IMO, lots of small banks is preferable to big banks as the damage one bank can do on the system is real minimal. If the decline is done slowly, big banks will restructure and no one should be on the hook other than the bank's management and board.
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That'll all change, once the revenue stream from banks goes down and the golden goose becomes the credit unions.
 
apdst said:
And, before you know it, everyone will be charging fees and what will have been accomplished? The fees exist because of the government, you won't escape them.
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It helps to actually understand what a Credit Union is and how it is functionally different from a for-profit bank before you make such comments.

See post #27

Fees exist because people are willing to pay them.
 
apdst said:
That'll all change, once the revenue stream from banks goes down and the golden goose becomes the credit unions.
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Based on what line of reasoning..... (This outta be good)

For a credit union to get that large it would need to have an inclusive membership that frankly does not exist. While there are credit unions that are largely open to anyone, they tend to have downsides that limit their appeal. Hence why the limited membership credit unions are the dominant ones. So, no, your reasoning is wrong as usual.
 
danarhea said:
And the bloodletting will continue. Oh, I am sure that the apologists for the elitist banksters will continue to shill "Those big banks have so many assets, that your mosquito-assed self moving your paltry sums away means absolutely nothing". Of course, the shills might be right, but in my life, my paltry sum is no longer in their banks. And on top of that, I am debt free to the point where I have cut up every single one of my credit cards. I only carry a debit card now, THROUGH A CREDIT UNION. So, each and every time, an apologist for an elitist bankster tells me I don't mean jack **** to them, I will say "Fine, and those bloodsuckers don't mean jack **** to me either". My money is no longer with them, so they will need to find another victim to go vampire on. And as long as others feel the same way as me, the bloodletting is not going to stop. LOL.

Am I a happy camper? You bet your ass I am. **** the banks.

And Bank Transfer Day has not even arrived yet. :mrgreen:

Article is here.
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GOOD!!!!!!!!!! its time for consumers to start reacting to and doing something about corporate greed....they can build all the crap they want in china...if we stop buying it...they will have no place to put it but up their arse
 
when paying cash, ask for the cash discount......stores pay the credit card companies 3% or more.
Several gas stations offer decent discounts for paying cash.
If you are a vet, ask for the vet discount at Lowes and Home depot, and other stores. You don't know who offers what discount without some research, or asking.
BofA ripped off my elderly neighbor recently, had him transfer his IRA funds to an annuity without telling him that he would be paying taxes all at once on the now closed IRA.
I shop at Goodwill and use all of their generous offers, such as senior day at 25% off everything, half off color of the day price tags, dollar thursday, and best of all, if you sign up with them on line, you get a new coupon sent to you every month for 20% off, and they encourage you to print extra copies and shop often.
Just got several silk hawaiian shirts for under $5 each. Now when we go on our next HI cruise, I won't be tempted to pay the big bucks for souvineers shirts of lesser quality.
There are lots of ways to spend and shop outside the corporate system.....
 
DiAnna said:
If the big banks are driven to insolvency... then what? The taxpayers are left to pay off the FDIC insurance on the money lost by people who have CD's, IRA's, 401K's and savings accounts.

The problem isn't the banks. It's congress and it's been 25 years coming. It all started with deregulation under Reagan, moving up the administrative chain to later include the removal of protection of public funds, allowing municipalities and public entities to invest in junk bonds, bonds from which previous regulations and protections had already been removed. I've watched this coming since the mid-1980's. Anyone with a brain knows that when regulations are removed from public entities and corporations, the watchdog has gone home and it's party time. It just took a couple of decades for all the pyramid schemes, public and private, to collapse.

Don't forget, just about everything that these public and private entities have been doing can be laid at the feet of congress. Oh, and also the campaign finance laws, which allow corporations to buy these "deregulations" in the first place by the legal bribes we laughingly call campaign contributions.
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Actually, it started in 1913, when Congress passed an unconstitutional bill, creating the Fed.
 
Move Your Money Project

link has a useful bank finder to help you locate a regional bank / credit union.

i found a couple, but none which offered a better deal than my own bank, which is also on the list.
 
obvious Child said:
Based on what line of reasoning..... (This outta be good)

For a credit union to get that large it would need to have an inclusive membership that frankly does not exist. While there are credit unions that are largely open to anyone, they tend to have downsides that limit their appeal. Hence why the limited membership credit unions are the dominant ones. So, no, your reasoning is wrong as usual.
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The largest credit union is the Navy Federal. Which is pretty tiny with assets less than $50 billion.

Navy Federal Credit Union - Wikipedia, the free encyclopedia

Considering that's fairly exclusively, there's not much chance that Credit Unions will take on a size similar to the big banks. Adpst is probably wrong on this as usual.
 
obvious Child said:
The largest credit union is the Navy Federal. Which is pretty tiny with assets less than $50 billion.

Navy Federal Credit Union - Wikipedia, the free encyclopedia

Considering that's fairly exclusively, there's not much chance that Credit Unions will take on a size similar to the big banks. Adpst is probably wrong on this as usual.
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If all the bank customers tranfer to credit unions, it highly possible.

The biggest question, is how is the government going to replace the revenue that will be lost from banks losing income.
 
apdst said:
If all the bank customers tranfer to credit unions, it highly possible.
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Considering that the transfer of money is going on across the nation and there aren't open credit unions that stretch from Hawaii to Maine, there simply isn't the possibility for any credit union to get that large. Geographical restrictions alone prevent this. The largest credit union in the US is tiny by comparison. Hell the big banks took write downs larger then the net assets Navy Federal had. You really need to stop talking about subjects you do not understand and are unwilling to learn about.

The biggest question, is how is the government going to replace the revenue that will be lost from banks losing income.
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Considering that many of the banks didn't pay tax anyways between 2008-2010, we'll find a way.
 
Helix said:
Move Your Money Project

link has a useful bank finder to help you locate a regional bank / credit union.

i found a couple, but none which offered a better deal than my own bank, which is also on the list.
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Is the saving rates offered better than Amex? I'm pulling money out of my own credit union and putting it into my Amex bank account.
 
MaggieD said:
Dan, just curious. What do you think credit unions do with all their money?

I just looked it up. I think I'll move my money as well.
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The fact that credit unions use deposits to make loans locally is the primary reason I moved to credit unions years ago. My money stays in my local economy instead of fueling economies halfway across the country or globe
 
apdst said:
And, before you know it, everyone will be charging fees and what will have been accomplished? The fees exist because of the government, you won't escape them.
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Another straw man - There are NO fees NOW. Whether there will be in the future is nothing but speculation by someone who supports the banksters.
 
danarhea said:
Another straw man - There are NO fees NOW. Whether there will be in the future is nothing but speculation by someone who supports the banksters.
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No debit card fee? I thought that was the whole point in dumping the banks. :rofl
 
danarhea said:
Another straw man - There are NO fees NOW. Whether there will be in the future is nothing but speculation by someone who supports the banksters.
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Oh there have been changes. Some have added fees, others have dropped rewards. Your statement is flat wrong. I was at Compass Bank and our debit card transactions used to get 1% cash back if we used them like a credit card (signature). Now they get nothing. Other banks have added ATM fees and removed free checking account options. There are fees NOW.
 
apdst said:
What's going to happen when the credit unions--because of the sudden massive increase in volume--have to hire more personel to handle the increase and then have to start applying the same fees to afford the increase in payrolls?
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What makes you think they will have to hire more people in branches simply because they have more deposits? And if they do, what makes you think that they cannot operate under the exact same business model that has served them well for decade after decade growing their business the entire time?
 
apdst said:
The fees exist because of the government, you won't escape them.
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Did I miss the important part of your post where you offered evidence to support this claim?
 
haymarket said:
What makes you think they will have to hire more people in branches simply because they have more deposits? And if they do, what makes you think that they cannot operate under the exact same business model that has served them well for decade after decade growing their business the entire time?
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If they have more customers, they will have to hire more people to service them.

As for why credit unions will have to start charging fees? I'll let the credit unions themselves tell you by quoting:

Therefore we are more likely to believe their claims that the Durbin Amendment will force fewer benefits and higher fees. A survey by the National Association of Federal Credit Unions found that nearly half of respondents are considering eliminating free checking to make up for lost fees. A similar proportion indicated that they would eliminate or cut back on rewards programs, and almost 9% professed that they might have to lay off staff members.
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ksu_aviator said:
Oh there have been changes. Some have added fees, others have dropped rewards. Your statement is flat wrong. I was at Compass Bank and our debit card transactions used to get 1% cash back if we used them like a credit card (signature). Now they get nothing. Other banks have added ATM fees and removed free checking account options. There are fees NOW.
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Let's not resort to scare tactics. The liberals think a CU's not for profit status means the CU doesn't have to make any money so the services will be free.
 
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