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Has anybody moved their acocunts from banks associated with the real estate-toxic assets-TARP debacle to locally owned or smaller banks? NPR featured this issue over the weekend. I'm just curious if it is gaining traction or a non happening "phenomenon".
Columbus Underground Messageboard » General Columbus Discussion » Q&A
The "Move Your Money" Movement
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Core_Models
Columbus
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I think you're making a pretty big leap in assuming that the local, smaller banks weren't the ones creating horrible loans...selling them to the big banks...who then needed TARP to help.
Posted 2 years ago # -
dashinhilliard
Hilliard, Ohio
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You have a great option in transferring all of your personal and small business activity into one of the numerous credit unions in Franklin County. Most credit unions offer all banking services (checking, savings, debit cards, credit cards, auto loans, home loans, discount brokerage, etc.) The pricing for the products is reasonable - credit unions are not-for-profit institutions that are in business for the benefit of the shareholders...meaning you who bank with the credit union. It may be a little more inconvenient to access your money (through ATM's due to the limited credit union offices), it still is more profitable to you as a depositor.
While some credit unions restrict memberships to a certain employer or profession, the larger credit unions in the city are now open to anyone residing, working, or worshipping in Franklin County. If you'd like to piss off a large bank executive, tell them you are transferring your funds to a credit union.
Posted 2 years ago # -
dashinhilliard
Hilliard, Ohio
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Yes it is MissKitty - I worked at a Friendly Ice Cream restaurant back in 1981-1983 when the Reese's Pieces was born......They used to be such a great chain...=)
Posted 2 years ago # -
misskitty
Columbus
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awesome !
Ok back to the topic at hand.
I like credit unions they are great if you need a car loan. I would not mind moving my funds to a credit union I think the only reason people are reluctant is due to the limited number of amenities like ATM's, On-line banking and stuff of that nature.Posted 2 years ago # -
pedex
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El Stonio wrote >>
Has anybody moved their acocunts from banks associated with the real estate-toxic assets-TARP debacle to locally owned or smaller banks? NPR featured this issue over the weekend. I'm just curious if it is gaining traction or a non happening "phenomenon".yes, did it fall of 2007 right before I shorted the crap out of many of these banks
Also paid off all debts and eliminated all credit, being in debt during a deflationary depression isn't too smart nor is feeding the beasts that made the problem. Uncle Sam seems dead set on putting several trillion on the tax payers anyway, so far it is succeeding quite well in that regard. There are plenty of small sound banks that are solvent and relatively safe, credit unions too.
Posted 2 years ago # -
dashinhilliard
Hilliard, Ohio
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Misskitty, try the larger ones like Telhio or Kemba, or 1st Service. I do most of my electronic payments with my creditors, but I do have access to my account to review statements and transactions daily on line. Telhio does offer an electronic package that will pay bills as well - I just have never used it. And they also provide downloads in to personal pacjkages like Quicken or MSN Money if you manage things on line.
As for cash, I will drive to my CU branch in Hilliard once or twice a week - everything else through debit card or extra cash at the grocery.
Posted 2 years ago # -
duncanfj
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@ Misskitty:
My wife and I use Kemba. We've used them for over a year and have been very happy. One of the nice thing is that some of the credit unions have agreements with larger banks. We can use Cooper State Bank and Bank of America's(among others) ATMs without a penalty. Those banks also have one line inside that is for members of the credit union association KEMBA belongs to (can't remember the name). However, I do know that Kemba does sell their fixed-rate mortgages but keeps the adjustable-rate mortgages. Their credit card rules were already compliant with the changes passed last year.
Posted 2 years ago # -
adrock
Grandview Heights
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i've been thinking about moving mine to members 1st for a while. i've just had bad experiences with 5/3. i've also used western credit union before and got much better service overall except for one teller.
now i get the free $100 things from like 3-4 different banks. i might open up an account with those now and just keep some cash in there for the 6-12 months or however long it needs to be.
Posted 2 years ago # -
racheltb
clintonville
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We have banked personally with BMI credit union for over 10 years now. They have held three mortgages for us and numerous car loans. Their online billpay and accounts are much more user friendly than the 'big banks' I use for my business.
I guess my only beef with BMI is that they eliminated business loans at just the time I needed one. But they were minimizing risks and that's SMART, exactly what I want in my bank.
Posted 2 years ago # -
manticore33
Delaware, OH
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A lot of banking institutions products and services are quite vanilla. Most have online bill pay, OD protection, and try to get you in the door with free checking. When I switch banks, again, I look at ease of access and locations. Ultimately, I chose Chase. In my area, I have several locations open until 7 p.m. and open at 7 a.m. Likewise, I generally can find a Chase location in most places I venture. Additionally, they do not charge for cash back on debit purchases which is nice if no ATM is available.
As far as personal loans or automobile loans, I am an exception and purchase my cars (used, not new) with cash. Also, a lot of times, if you are purchasing a new car dealer originated loans potentially have a lower APR than bank originated. Thus, the relationship banking model, at this point, really has not offered me much and probably will not offer me much in the future (maybe on the next house, still 3-5 years away). Given that, in case of a failure please read the fine print. Yes, FDIC insures your deposits, but it has 100 years to pay you back. ;)
Edit: Banks realize checking accounts and savings accounts are no longer highly profitable. Hence they have an emphasis on 'total banking relationship' whereby the ideal customer has a checking, savings account, credit card, order draft protection, credit protection on all notes, retirement and investments, car note, and maybe mortgage. If you notice some banks if you have 30-50k in deposit or debt you will start getting freebies (checks, preferred interest rates on accounts, etc).
The banks offering 'high rates of interest' on account products typically need the capital, whereas, in the current state of the economy, most larger banks can borrow for less than what they want to pay on accounts. Hence the abysmal rates on personal savings products (savings accounts, money markets, and CDs). I think maybe you'd get .5% or so on a $25k balance. Remember inflation is roughly 2-3% so, you are losing money on long-term CDs that are not around that rate.
Posted 2 years ago # -
myliftkk
Columbus, OH
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The one risk you should take into account when going to a "community bank", is that they can potentially have serious exposure to the somewhat cratering commercial real estate market. A lot of community banks loan portfolio's are flush with commercial loans and a good chunk of those bad ones haven't been cleared out of the system yet.
I assume the community bank rating system (I forget the exact term for it) takes this into account, but you might want to verify that.
Posted 2 years ago # -
myliftkk
Columbus, OH
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Interesting article about how Santa Cruz is moving it's own money into local bank/branches to stimulate growth (rather than park it in T-bills).
http://news.santacruz.com/2010/02/10/santa_cruz_county_thinks_local
Posted 2 years ago # -
LBOWACC
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Part of my job is following a portfolio of community banks, and writing investment reports on them. You can get financial statements from the fdic if you are worried about the health, along with key ratios and metrics. I do not follow any in ohio, but i follow 1 in michigan, a couple in florida, one in texas, and a few up in wyoming and idahoe area, and there are some shit ones that are fucked, but there are some that are having record breaking years.
Posted 2 years ago # -
dashinhilliard
Hilliard, Ohio
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The only thing you have to worry about as a depositor is your FDIC or NCUA insurance.....a personal depositor doesn't care about the exposure of the community bank's commercial portfolio. The FDIC comes in Friday night and reopens Monday as a new institution. Of course, though, how sound is our government at the moment? Then your mattress and a rifle is the surest protection.......
Posted 2 years ago # -
agtw31
columbus
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manticore33 wrote >>
Also, a lot of times, if you are purchasing a new car dealer originated loans potentially have a lower APR than bank originated.not exactly true.
car dealers make their money off the loan's interest rate just like mortgage brokers do.
they can't compete with bank rates,because they are trying to sell the customer a crappy rate.Posted 2 years ago #
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