Backlash against bank fees, along with poor service and the like has lead to an increase in defection rates among customers of large, regional and mid-size banks, according to a new study by J.D. Power and Associates.
The 2012 U.S. Bank Customer Switching and Acquisition study found that 9.6 percent of customers switched their primary banking institution during the past year, up from 8.7 percent in 2011 and 7.7 percent in 2010.
The majority of individuals switching banks are moving to credit unions and smaller banks. Many credit unions have expanded services to match what you’ll find at a bank, and since credit unions are nonprofit, fees tend to be lower. Some credit unions may not have as many branches or ATMs, but a number belong to cooperative networks. You can search for credit unions that fit your needs at the CUNA website.
According to our own analysis and industry experts, banks will continue to experiment with fee increases as they attempt to make up billions in lost revenue due to the bad economy and new regulations.
You can fight back against being nickeled-and-dimed by your bank, see our tips at Watch for new bank fees. Plus see our report Take on your bank, which also includes reader ratings of services at 13 national brokerages in Where to put your money (available to subscribers).
If you decide to move your money, check to see whether your new bank offers a “switch kit” to help you streamline the process. You can also download our step-by-step guide Move-Your-Money.pdf.
Previously: You can expect more bank fees in 2012