Credit Unions Receiving Big Business As Consumers Move Their Money

As banks raise their fees, over 500,000 consumers have been moving their monetary accounts to credit unions in the last month. Billions of dollars of savings and checking account balances have been transferred according to the Credit Union National Association. This is the country’s biggest advocacy group for the credit union industry. CUNA surveyed over 5,000 local credit unions and say that about 650,000 new members have joined them since September 29. That day Bank of America announced its plan to institute a $5 fee each month for debit card use, which it has since decided not to implement.

CUNA estimates that these transfers have added over $4.5 billion in savings accounts in credit unions. Some of this money comes from existing members who have moved all of their finances to their credit union accounts. Four out of every five consumers joining these establishments cited increasing fees at bands or the “Bank Transfer Day” as their reason for joining. “Bank Transfer Day” is a social-media driven event that will take placed on November 5th. Consumers who are concerned about the way banks are currently running are encouraged to move their money to a union by the 5th.

Consumers can save about $70 in fees and get lower interest rates on loans by choosing a credit union. People with low incomes save even more money according to research done by the association. Large credit unions saw the highest increases in customer activity. 70% of unions with over $100 million in assets have seen rises in membership rates. Unions are taking advantage of the renewed interest in them by increasing advertising, sending kits to bank users to help them switch over and extending their hours on November 5th. Many new credit union members are also receiving bonuses and free gifts for moving their accounts to a local union branch.

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