It’s Bank Transfer Day: The day when those sympathetic with Occupy Wall Street-types are encouraging people to move their money from a Too Big To Fail bank into a credit union.
The official Facebook page of the movement has a quick and dirty explanation, with a bunch of useful links:
While the Bank Transfer Day movement acknowledges the enthusiasm from Occupy Wall Street, the Bank Transfer Day movement was neither inspired by, derived from nor organised by the Occupy Wall Street movement, and the Bank Transfer Day movement does not endorse any activities conducted by Occupy Wall Street.
So, say you actually want to do this, how would you go about it? After all, switching out of one bank is a really annoying process. This post from Fearless Revolution has a pretty good step by step guide. Mostly it’s the obvious stuff. You just have to be prepared to deal with a little beuracracy.
One thing worth noting is that ultimately your bank probably won’t mind very much, even if you’re one of a lot of people who make the switch. As Felix Salmon explains:
And the big banks don’t particularly want all those retail-deposit funds — they’re getting precious little interest on them, and they come with all manner of expensive obligations to mail out statements and provide smiling service at teller windows and generally do the whole customer-service thing, which as we all know big banks are very bad at. Historically, they’ve done what they have to do on that front because they’ve been able to extract all manner of overdraft fees and interchange fees and the like, but that fee income is shrinking now, thanks to Dodd-Frank, and the fact is that millions of small bank accounts are actually unprofitable now for the big banks, and those banks won’t shed many tears if those customers go off to a credit union instead.
So like with a lot of stuff designed to make people “feel good” this is mostly about… feeling good.
That being said, Credit Unions are seeing an inflow of accounts like never before, so although Bank Transfer Day may not ultimately hurt the TBTFers that much, someone is ultimately benefitting.