Seniors Moving Their Money to Small Banks

Jan 9th, 2010 | By Sharon Shaw Elrod MSW EdD | Category: Senior Finances

Many national leaders are suggesting that moving your money from big banks (e.g., Citibank, Chase, Bank of America) to small local banks is a very big way to express disapproval of the big bank bailout that most of us seniors are angry about. 

True, most of the big banks have enough corporate accounts to keep them going for a long time.  But the impact, and the message sent by individuals who pull out their accounts would be significant.  Let’s take a look.

If 1000 people in one community move their checking accounts (let’s say average daily balance of $1000), and then move their savings accounts (average daily balance of $10,000) and CD’s (average of $25,000 for 100 of the 1000 people), we’re talking about $13.5 million.  Now multiply that by 1000 communities around the country.  That’s $13.5 billion dollars. 

Again, it’s true the billions of dollars in corporate accounts will keep the big banks afloat.  But, and this is the clincher, those big banks’ status will have diminished and  you will have demonstrated your disapproval of the bailouts!  And small, local banks that make significant contributions to neighborhoods and small towns will experience an incredible economic boost.

Anybody ready for a movement?  Locate your small local bank, check its economic health on the FDIC website, and move your money.  Then tell all your friends.  That’s how movements get started.



Leave Comment

You must be logged in to post a comment.