National Bank Transfer Day.

These days you can start a Facebook website and apply the guy fawkes‘ face to anything and after you get a few hundred “likes” then the news media promotes you like heroes because you endorse change to the financial system or as people in the 1930′s called it a “Bank Run”.  On the National Bank transfer website(facebook) they are encouraging everyone to leave their national banks to punish them for recent changes to the banking system that are apparently hampering the fun of the “99%”, but isn’t affiliated. I guess there

Nothing says American like making the dollar worthless!

are two important things to be taken from this argument to transfer to credit unions or smaller banks.

1. Losing thousands of Customers (used to) make running a bank impossible.

I don’t think losing 100′s if not 1000′s or even 10000′s of customers is really going to have any major effect on a large banking institution. Why not? Sure most banks like to have high customer numbers to generate fees right? Are responsible well read people going to leave banks? Nope. If you don’t pay any fees and any changes to fee structure don’t affect you, are you going to change banks? Nope. If you have a million dollars in a bank and they give you 3% interest and invite you to bank parties are you going to switch banks? Nope.

2. Many of the recent changes to the banks were put in place to protect the small guy.

Many of the new fees that are being put into place are being directly caused by government intervention into the financial system. Why? With many of the small fees being made more “avoidable” the banks are looking to still saddle the seemingly less wise and fortunate with more costs. Using a debit card is always a bad idea, no one should be paying $3-5 a month to be handing cash to businesses through a debit card instead of getting at least a months protection (and possibly rewards) for using a credit card. High interest rates stink, but are completely unnecessary because you don’t need to borrow the credit card company’s money out of the grace period. Other than these 2 changes and some other minor fee increases that spawn from trashing your credit score who do recent changes effect? People with poor money management skills who aren’t organized enough to change banks and don’t have enough money in the bank for them to care.

Will you be switching any accounts away from larger banks and financial institutions? Do you think any changes will benefit or hamper the American financial system? Worthwhile or potential financial danger?

 

 

 

 

3 thoughts on “National Bank Transfer Day.

  1. The biggest benefit I can see is that Dodd-Frank exempted smaller banks from some of the additional fees. This may slightly tilt the market towards preferring smaller banks rather than big nation-wide banks, and that in turn starts to reduce the size of “too-big-to-fail” institutions, so that they are no longer too big to fail.

  2. You seem focused only on the fees. You don’t have to be paying fees to be upset with the big banks right now. They are for-profit organizations that invest depositors money in whatever they feel like. I love capitalism and I appreciate banks have historically turned profits based on gambling but they do it at the cost of customer service and government security nets. It just makes more sense to have your money in a credit-union where the focus is local and more service oriented.

    • Are you saying you don’t like big banks because they have poor customer service and utilize the FDIC? Most are required by law to be part of the FDIC. Concerning customer service it’s hard to debate personal experiences, but I find that most large banks adapt more quickly than credit unions in things such as hiring bilingual workers to better serve their community. I addressed fees because that’s what seems to come up most with peoples gripes about banks.

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