Garofalo reports: "According to the consulting firm cg42, the nation's 10 biggest banks could lose as much as $185 billion in deposits this year due to customer defections."

Frustrated consumers have been switching banks in drives since Bank Transfer Day, 11/5/11. (photo: Ted S. Warren/AP)

5.6 Million Americans Switched Banks in Last 90 Days

By Pat Garofalo, ThinkProgress

02 February 12

ack in November, the Occupy Wall Street movement inspired "Bank Transfer Day," a day for Americans fed up with the actions of the nation’s biggest banks to move their money to a different institution. Initial estimates of the impact of Bank Transfer Day placed the number of accounts moved at around 600,000, but later estimates revised that downward to around 200,000.

However, new estimates from Javelin Strategy and Research, a research and consulting firm, show that the original numbers were closer to the truth. Javelin found that 5.6 million people have moved their bank accounts in the last 90 days, with 610,000 citing Bank Transfer Day as their reason:

Bank Transfer Day and the Occupy Movement have received tremendous attention, and for the first time we have market research data to measure the impact on the financial services industry. Javelin’s research estimates that 5.6 million U.S. adults with a banking relationship changed providers in the past 90 days. Of those switchers, 610,000 US adults (or 11% of the 5.6 million) cited Bank Transfer Day as their reason and actually moved their accounts from a large to a small institution.

Javelin noted that this pace of account closing is three times the normal rate. While 11 percent of people moving their accounts cited Bank Transfer Day, one quarter said they moved their money because their old institution charged too many fees. Account closures at Bank of America, the nation’s second largest bank, actually jumped 20 percent in the fourth quarter of last year, potentially driven by the bank’s ill-fated decision to implement a $5 monthly fee for its debt cards.

According to the consulting firm cg42, the nation’s 10 biggest banks could lose as much as $185 billion in deposits this year due to customer defections. Of those banks, "Bank of America is the most vulnerable and could lose up to 10% of its customers and $42 billion in consumer deposits." (HT: Business Insider)

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+28 # Holyone 2012-02-02 14:32

The Banks are always devising ways to own your money. I was shocked to find the swiftness with which Wells Fargo has gone about snapping up Community and local banks. It is off the Charts.

Those Red and Yellow colors of Wells Fargo are all over the place. They are trying to make sure that we have no place to park our money anywhere but their BANKS!

What is a plan to end-run this new strategy by the 1%?

WE need to target Wells Fargo and drain them of 99% deposits and accounts.

+30 # Willman 2012-02-02 18:01

Hit em where it hurts the most.Their bottom line.Credit unions are the way to go.They should not be able to be bought out.The only language the big banks understand is $$$$$.

+2 # wsh 2012-02-03 06:23

The problem with Bank Transfer Day is that most of the people who left were the small retail depositors with comparatively tiny accounts. I read that the Mega-banks quietly welcomed this, as these depositors cost them too much money to service their accounts. As a matter of fact, they'd love to jettison all their smallest clients, if the law would let them. So BTD didn't hurt their bottom lines at all -- although it was a good symbolic protest.

You'll never see a Mega-bank branch in the ghetto areas of your city; but they're only blocks from each other in the affluent ones. They don't WANT small depositors. Too much bookkeeping for fees they generate.

Oh, and BTW, I've NEVER banked at a Mega-bank -- never will.

+4 # jwb110 2012-02-03 10:38

Quoting

The problem with Bank Transfer Day is that most of the people who left were the small retail depositors with comparatively tiny accounts. I read that the Mega-banks quietly welcomed this, as these depositors cost them too much money to service their accounts. As a matter of fact, they'd love to jettison all their smallest clients, if the law would let them. So BTD didn't hurt their bottom lines at all -- although it was a good symbolic protest.

You'll never see a Mega-bank branch in the ghetto areas of your city; but they're only blocks from each other in the affluent ones. They don't WANT small depositors. Too much bookkeeping for fees they generate.

Oh, and BTW, I've NEVER banked at a Mega-bank -- never will.

I find it hard to believe that any bank would turn up it's nose at $42 Billion in deposits. I recently closed a BofA account, last week, and I am getting all kinds of email to get my business back and believe me there was not much money in the account.

+14 # wilhelmscream 2012-02-02 21:11

I joined a Credit Union last November. F*ck Bank of America

+9 # Saberoff 2012-02-02 21:45

I've been having a ball with this simple action:

http://www.youtube.com/watch?v=2JlxbKtBkGM

I can't wait for my bank junk mail!

Try it. It's fun!

+9 # disgusted American 2012-02-02 23:37

Don't leave Morgan Stanley out. When it took over the Citigroup part of Smith Barney, it installed a $35 per quarter fee for anyone who had less than $25,000 invested and took it straight out of the customer's account. No questions asked. Called this "cost-sharing" for low-balance households. Ya gotta luv the spin.

But wait - there's more! The 1099 showed the $35 per quarter fee as income interest, fully taxable. So the "low-balance household" had to pay taxes on $35 x 4 months worth of money never rec'd. How's that for a swindle?

Occupy Morgan Stanley.

Re junk mail from banks and credit card companies: take all the crapola out of the envelope and stuff it into the postage-paid envelope that goes back to the the bank or card company - there's always a postage-paid, addressed envelope cuz they are trying to sell you something you have to apply for that goes back to the bank or card company - throw in some other stuff from wherever or whatever if you feel like it - and mail it back.

Doesn't cost you anything and eats into their profit. Screw 'em.

+8 # angelfish 2012-02-03 04:09

Well, Folks, That's one way to FINALLY get their attention! Perhaps they will begin the process of FAIRNESS in their Banking Institutions and begin to offer REAL service to Citizens rather than continuing to Rape them financially as has been their most recent practices! Find and JOIN your local Credit Union!

+3 # reiverpacific 2012-02-03 08:39

Wish we could do something about the tree major Credit Bureaus as well. They have far too much clout, are inefficient and inflexible and work on behalf of their masters, the Mega Banks. I have a good friend who just quit as branch manager of US Bank because of the demeaning "points" system and stupid marketing schemes she had to do to keep her "points" up. Notice how almost all the branches are fronted by women.

0 # zzzcat 2012-02-03 09:30

I would have liked to leave Wells Fargo as well. but for a couple of reasons I'm still there ...one is that I have not ever had a single charge to any of my accts there, and that's six accounts. I worked it out with them somehow, and they did as I requested. because there are multiple accts that have monthly automatic withdrawals from them it would be a major move to have to change at this point. my ancestors have been with WF since it first opened it's doors. still, with all of that, I am a total occupy movement supporter and someday, may have to just take the step and make the move.

+1 # CandH 2012-02-03 12:30

Also, people with mortgages can't just move their mortgages, without fees, massive time consumption, and a litany of crazy requirements now to qualify for the Exact Same Mortgage terms/conditions they got before the crash.

Also, very small businesses that have multiple business accounts with these big banks, (ie merchant banking, lines of credit, CCs, checking/savings,) can't just pick up and go to smaller local institutions, who not only don't offer all these services as a package deal, but the credit line requirements are so strict these days that a teeny tiny small business owner can't get the same terms/conditions as before the crash, making it impossible to move their money business.

+3 # Windy126 2012-02-03 11:01

I have been send back credit card stuff in their prepaid envelope for years. It stops for a while then they start all over again so I do it all over again. Lots of fun, I laugh all the way to the mailbox.

+4 # LessSaid 2012-02-03 11:12

I do want to point out that OWS didn't inspire "Bank Tranfer Day".

------------------------------------

Kristen Christian, an art gallery owner in Los Angeles, California, said she was dissatisfied with Bank of America's "ridiculous fees and poor customer service." She created an event on Facebook called “Bank Transfer Day” and invited her friends to close their accounts at big for-profit banks and move their money to credit unions by November 5, 2011. Christian chose November 5 because of its association with Guy Fawkes, who tried to blow up the British House of Lords and bring Catholic rule back to the United Kingdom, but was captured on that date in 1605.

+1 # code red 2012-02-04 05:46

Transfer all your funds and take anything you have out of the stock market whether it is in 401k's pensions or what not and incur the fees.
Use any funds you may have to invest in time tested tangible assets.
For information, look to zero hedge, Bob Chapman, Max Kaiser, and any other sources you wish to pursue.

Even if you just take your savings/what have, you out of the "corporate banks" You are doing something to combat the rampant corruption and fraud that you can't but not see?

Just my "two cents"...

P.S. Have rarely posted anywhere before and frankly don't much like the the "required fields" when signing up to comment as it allows you to be positively identified, (why do I mind that? why is that necessary?) but "spreading the word" about the current current state of affairs amongst my fellow Americans is of the utmost importance.

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