Consumers Unite Against Bank Fees: Bank Transfer Day

Strategic Insights -

Bank Transfer Day, a grassroots movement that aims to encourage consumers to switch their bank accounts to credit unions or community banks, has been scheduled for Saturday, November 5. The movement was sparked by Bank of America's decision to charge customers a $5 debit card fee in 2012. Consumers Union, the nonprofit advocacy arm of Consumer Reports, has developed a set of tips to help guide consumers interested in switching their accounts.

The tips, available at www.DefendYourDollars.org, include opening a new bank account with a small deposit, making a list of automatic payments and deposits, and rescheduling each payment to come out of the new account. The organization also recommends leaving some cash in the old account for at least one month before transferring the final funds.

Consumers Union's director of financial service program, Norma Garcia, emphasized that consumers have the power to vote with their feet and take their money elsewhere if they are unhappy with new bank fees. "There are many banks and credit unions that are eager to serve consumers fed up with rising fees," she said.

Key Takeaways:

  • Bank Transfer Day is scheduled for Saturday, November 5, with the goal of encouraging consumers to switch their bank accounts to credit unions or community banks.
  • The movement was sparked by Bank of America's decision to charge customers a $5 debit card fee in 2012.
  • Consumers Union has developed a set of tips to guide consumers interested in switching their accounts, available at www.DefendYourDollars.org.
  • The tips include opening a new bank account with a small deposit, making a list of automatic payments and deposits, and rescheduling each payment to come out of the new account.
  • Consumers are advised to leave some cash in the old account for at least one month before transferring the final funds.
  • Consumers have the power to vote with their feet and take their money elsewhere if they are unhappy with new bank fees.
  • Many banks and credit unions are eager to serve consumers fed up with rising fees.

Statistics:

  • $5: the amount Bank of America will charge customers for debit card fees starting in 2012.
  • November 5: the scheduled date for Bank Transfer Day.
  • 2012: the year Bank of America will start charging customers $5 for debit card fees.

Sources:

  • The Consumers Union: Saturday, November 5, Bank Transfer Day (no date provided in source material)
  • www.DefendYourDollars.org: "How-To Change Banks" video and tips for switching bank accounts
  • Norma Garcia, director of Consumers Union's financial service program (name and title as mentioned in source material)