Credit Union Membership Spikes With 'Bank Transfer Day'

Credit unions are reporting huge bumps in business as people pull their money out of banks and put it into nonprofit credit unions.

The movement, which grew out of the scathing reaction to , has declared Saturday “Bank Transfer Day.”

The day’s Facebook page, which has more than 80,000 “attendees,” says: “If we shift our funds from the for-profit banking institutions in favor of not-for-profit credit unions before this date, we will send a clear message that conscious consumers won't support companies with unethical business practices."

Kristen Christian, the 27-year-old Los Angeles small business owner who started "Bank Transfer Day," told the Associated Press that despite the banking industry's about-face, it was "too little, too late," as she's already opened accounts with two credit unions.

"Consumers are waking up and seeing that they have options," she said.

While Bank Transfer Day’s anti-big finance sentiment echoes that of Occupy Wall Street, the two movements are not officially aligned.

Credit unions, unlike big banks, are nonprofits that are owned by their members and have no stockholders. They offer the same services as banks, including checking and savings accounts, credit cards, loans and trusts.

In the past, people usually joined credit unions affiliated with their place of employment, trade or a community group. But most credit unions now have community charters that allow them to serve anyone in their geographic area, Kim Nichols, assistant vice president of marketing for , told .

Locally, Northfield has a branch of the .

“US Federal is excited to be a part of the grassroots movement and is looking forward and prepared for the additional traffic,” said Bob Stowell, vice president of operations at US Federal Credit Union in a press release.

The USFCU offers a $50 deposit to all new checking account holders who participate in "Bank Transfer Day" today. Their branches are open 9 a.m. to 1 p.m.

The "Bank Transfer Day" Facebook page goes on to say it's time to invest in local community growth, offering the following tips:

• Research your local credit union options
• Open an account with the one that best suits your needs
• Cancel all automatic withdrawals & deposits
• Transfer your funds to the new account
• Follow your bank's procedures to close your account before 11/05

The Big Question: Are you a member of a credit union? Tell us why or why not in our comments section.