Move Your Money

Move Your Money

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The Move Your Money campaign is a really big deal.

The idea is simple: regular Americans can do their part to shift power from Wall Street to Main Street by moving their money from the Big Six banks and into a smaller, local, community bank or credit union that is more likely to treat them like people.

The big banks do over 97 percent of the risky derivatives business, and which
took trillions in taxpayer money, only to return to bad behavior.

The added upside: the money is more likely to be reinvested in local communities rather than taken as profit.

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5 Comments

Medisoft

Would you recommend this for only personal accounts or business accounts as well? Are the smaller banks as likely to give major (million dollar) loans as the large one? I'm a small business owner and just curious. Good article though.

John Goldstein

A great issue to focus on and to flag. As someone who has been doing this (on behalf of foundations and families we have invested about $50 MM in community banks and credit unions over the last 2 years), a few thoughts on how to make sure this energy helps make sure people migrate to a better financial relationship for themselves and their community:
1. Specific smaller, community financial institutions have very different objectives and capabilities that may make them great places to move money to or not so great places. A few key variables:
A. Their community lending: Some community banks (e.g. certified community development finance institutions) are often active lenders, supporting the growth of small business, affordable housing, and other causes. Others do very little for their own communities
B. Their fees and practices relative to customers – some community banks are very pro-consumer (e.g. clear, reasonable overdraft and fee policies) and others are not. One great example is the way banks clear checks. Many banks, if they receive multiple checks written on your account begin with the largest one to maximize the chance of multiple overdrafts. Others start with the smallest to minimize the chance.
C. Their soundness and service – the reality is some community banks have remarkable customer service (the one we use for our business has an account rep we know who calls us who we can call anytime). Others do not.
2. Let's not forget credit unions. They often (but not always) have far fewer fees, far better credit card terms, and higher deposit yields. A well run credit union as, effectively, a coop looking to serve its members can focus on supporting its members, not profiting from them.
It is great that this idea is picking up attention and steam!

Kryskirkpatrick

I think this is something that more people need to know about. Can one person make a difference. I am willing to change banks I am now with B of A. I posted this on my blog and sent out a tweet. Great stuff!

jsmith

should be required viewing for business men …..
jsmith
thanks
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The system of commodity money eventually evolved into a system of representative money.[citation needed] This occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty. These banknotes, known as "jiaozi" evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins.

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