WEST PALM BEACH, Fla. — Bank of America and other major banks may have abandoned plans to charge monthly fees on debit cards, but that hasn't stopped credit unions from taking advantage of all the publicity generated in the lead-up to Bank Transfer Day by announcing competitive responses of their own. Those responses have ranged from simple reassurances that credit unions will not charge fees, to paying members to use their debit cards, to paying people to join and even to take pictures of themselves shredding their bank plastic.
Examiners Get Guidance
ALEXANDRIA, Va. — With credit unions either seeing an influx of deposits or anticipating an influx on Nov. 5 as part of Bank Transfer Day, NCUA advised its examiners to be aware some CUs may see temporary declines in net worth ratios. It further reminded examiners that call reports allow credit unions "to calculate their net worth ratio in different ways, using 'point-in-time' assets or using a rolling average of assets."
The agency added that the rolling average of assets accounting approach "was put into place to be more equitable to credit unions who may experience a large payroll deposit on the last day of a quarter or have seasonal fluctuations such as teachers credit unions."
NCUA cautioned, however, that the rolling average is just a temporary event and that capital may be affected in the long term if other plans are also not implemented.
Average Savings: $132 per HH
WASHINGTON — CUNA issued a statement that over the 12 months ending June 2011 the average credit union member saved $132 per household just by doing business at a credit union. "And that's on average; the more a consumer does with a credit union, the more the consumer saves," CUNA reminded.
Extra Staffing At People's
MIDDLETOWN, R.I. — People's Credit Union said it had seen an uptick in new memberships in the lead-up to Bank Transfer Day. PCU said it made its switch kit readily available in all branches and on its website. It also had extra staffing in place in its six branches on Nov. 5.
Sign Up, Get Thirty Bucks
BAKERSFIELD, Calif. — Through Nov. 5, Kern Schools FCU was offering members and non-members who opened a new checking account $30 for their initial deposit and a free first order of checks. It also offers free debit cards and online banking.
Shred Your Bank Card & Win $1,000
SAN DIEGO — San Diego County Credit Union is offering a $1,000 prize for the best photo of a member shredding their bank debit card. Five other prizes of $100 Visa gift cards are also being offered. SDCCU has created a Facebook page to which members can upload a photo of themselves shredding the bank plastic (
"Many big bank customers are angry with the high fees they are being charged, so SDCCU is reminding people that they have options and that they don't need to be nickel and dimed," said Teresa Halleck, San Diego County Credit Union President & CEO. "We are encouraging all local big bank customers to make the switch to San Diego County Credit Union where we still offer free checking accounts with eStatements and free debit cards."
KCFCU Offers $70 Incentive
BATTLE CREEK, Mich. — Kellogg Community FCU issued a statement to local media noting it was ready to accept new members as part of "Bank Transfer Day." New members who joined KCFCU on Nov. 4 and 5 received a gift, as well as a $70 incentive paid into their new account (active checking and savings account with a debit card required).
'SwitchTicket' Rewarding
ALEXANDRIA, Va. — CommonWealth One FCU has launched a "Three Cheers for Free Checking" campaign that highlights how members save money with its free checking accounts and no-fee debit cards.
As part of the campaign members are being urged to refer friends, family and co-workers to the credit union with a "Switch Ticket" that can be found in branches and online at www.cofcu.org/switchticket. When a new member uses a Switch Ticket to open a checking account with a debit card, e-statements and direct deposit, they receive $25. The referring member is automatically registered for a $250 monthly drawing.
Volume Up In S.C.
COLUMBIA, S.C. — A number of credit unions in this market reported they were seeing an "above average number of new accounts" being opened. "Every day the call volume is picking up of people who are looking for alternatives to their current financial institution," said Anne Shivers, CEO of Carolina Collegiate FCU.
Use Debit, Get 25 Cents
SAN DIEGO — Mission Federal Credit Union has rolled out a special holiday offer for November and December in which it will pay members 25 cents each time they use their debit card for qualified transactions up to $5 per month.
The $5 figure is designed to coincide with the monthly debit card fee many banks previously announced, although most have now backed off those plans.
In addition, as part of its 50th anniversary, Mission Federal members who refer a friend to open an account, along with the new member, will receive $50 by meeting certain program requirements.
As part of that anniversary, Mission Fed has also formed a "Kindness Crew" to carry out "50 Mission Acts of Kindness" at schools and non-profits throughout San Diego County.
Arizona State Reports Biz Is Up 25%
PHOENIX — Arizona State Credit Union said October marked its highest membership growth in more than 10 years, saying new accounts were up by 25%. While one ASCU branch indicated that more than 50% of its new accounts were driven by Bank of America debit card fees, the CU issued a statement saying it does not believe that fee is the sole reason for new account openings to be at double the normal growth.
"The spike in membership can be partly attributed to people's reactions to large banks announcing new fees, but it appears consumers are more ready to make life changes that affect the local Arizona economy," said Paul Stull, senior vice president of strategy and brand. "People want low fees, but they also want Arizona communities to benefit when they choose a local financial institution."
Grass Not Only Thing Greener At MACU
SALT LAKE CITY — Mountain America Credit Union will be extending lobby hours at select branches on Nov. 5. and offering consumers who open a new checking account on Bank Transfer Day a whopping $125.
"While Mountain America already has Saturday drive-up service at many locations, we want to make sure some of our lobbies are open as well so people participating in Bank Transfer Day can open accounts," said Jason Rogers, MACU VP-branch administration, in a statement.
Consumers can also receive $125 when they open a new checking account at Mountain America on, or before, Nov. 5. A coupon for the cash bonus, and a list of participating branch locations, can be found on Mountain America's website at
No Ifs, Ands or Buts
JACKSON, Mich. — Bank Transfer Day came at the same time EECU was debuting its"No Ifs, Ands or Buts FREE Checking with no-fee Debit Card" campaign. The promotion, which runs through year-end, encourages current EECU members who don't have a Checking Account at the credit union-as well as non-members to make the switch and earn $25 cash. The debit card is part of the credit union's "Certified Smart Choice Checking."
New Directions
SYLVANIA, Ohio — Directions Credit Union here was featured as part of a report by former CBS News anchor Dan Rather on "The Unbanked" that aired on HD Net. Rather noted the credit union, like many others, had seen an increase in new members as a result of increasing bank fees. A member of DCU was featured in the report, as was CEO Barry Shaner.
Members 1st Opens With Special Hours
REDDING, Calif. — Members 1st CU opened the doors of one of its branches with special Saturday hours on Nov. 5. Related festivities included prizes for new members along with free food. It pointed prospective members to its switch kit to make the transfer of funds go smoothly.
121 Financial Axes Its Maintenance Fees
JACKSONVILLE, Fla. — 121 Financial Credit Union here said it has eliminated its $5 monthly maintenance fee for member accounts effective Nov. 1.
"To our knowledge, we are now the only financial institution in the Northeast Florida market with absolutely no maintenance fee," said CEO William Braddock.
"Maintenance fees in financial institutions are generally charged on small dollar account relationships to 'level the playing field' for those who use or only qualify for very limited services," Braddock said. "In other words, the credit union is unable to generate revenue on these accounts, so the fee was imposed as a matter of fairness to those who use more of the credit union's services. For that reason, our maintenance fee was originally established nearly a decade ago.
"But in reviewing the current environment where institutions have been adding fees, such as $5 per month debit card fees, and then having to back down due to customer anger, we felt we needed to be proactive. Our goal is to always pass on savings to our members whenever and wherever possible."
83 Take The Pledge
ST. PAUL, Minn. — Eighty-three Minnesota credit unions have pledged to continue to provide members fairly-priced banking services, including debit card fees. The pledge reads, "I pledge to uphold the credit union philosophy of 'people helping people' by continuing to offer fairly-priced banking services to our members. In addition, I pledge that my credit union will abstain from charging a fee for members to use our debit cards for as long as market conditions allow us to do so."
A list of credit unions that signed the pledge can be found at
