Credit Unions Gain Members as Big Banks Introduce New Fees

As the dust settles on the debit card fee fiasco, credit unions are reaping the benefits of disgruntled consumers fleeing big banks. Despite initial losses, big banks have regrouped and introduced new fees to compensate. Credit unions, meanwhile, are continuing to promote their no-fee or low-fee policies, attracting members who value transparency and fair treatment.

Key Takeaways:

• Credit unions have continued to gain members since Bank of America's $5 per month debit card fee announcement, with reports of increased switching still appearing in national, regional, and local media.
• Big banks have introduced new fees, including increased checking account maintenance fees, replacement card fees, and fees for wiring funds, to recoup lost revenue from debit card fee limits.
• John Ulzheimer, credit specialist at SmartCredit.com, noted that banks prioritize their bottom line over customer satisfaction, constantly seeking ways to grow revenue through fees, lower deposit rates, or higher credit card interest rates.
• Major banks, such as Citibank, US Bank, and BofA, have increased their monthly checking account fees, with some instituting new fees or minimum balance requirements to offset losses.
• Credit unions and community banks are promoting lower-fee policies and transparent banking practices to attract customers seeking fair treatment and avoidance of hidden fees.

Statistics:

• Big banks stand to lose $7 billion annually due to new limits on debit swipe fees.
• Citibank is raising both monthly charges and minimum balances for its checking accounts.
• US Bank doubled its monthly checking account fees to $2 a month.
• BofA charges $12 a month for personal checking and has introduced a new menu of checking accounts with fees ranging from $6 to $25 a month.
• Chase and Citigroup are also charging monthly fees of $12 and $10, respectively, for their checking accounts.

Sources:

• CNNMoney (Nov. 21)
• infotumbler.com (Nov. 17)
• Money Magazine (as reported on infotumbler.com Nov. 17)
• The Nilson Report (publisher, David Robertson)
• aSmarterChoice.org
• CBS News (Nov. 15)
• digitiad.com (Nov. 16)