Millennials Ditch Big Banks and Go Local With Their Money

[marmar]

(Bloomberg) Millennials are increasingly shunning big banks and going local with their money.

Community banks won with younger customers last year, netting a 5 percent increase in account holders ages 18 to 34, while credit unions recorded a 3 percent gain, according to data compiled by Accenture Plc. By comparison, large national and regional banks struggled to retain millennial clients -- losing 16 percent of them over the same period.

One reason: Bigger banks tend to charge more for retail services. There’s been an increase in fees for account maintenance, overdrafts, ATM withdrawals and other services at major financial institutions.

For Tommy Oakes, it comes down to price. The 24-year-old, who works on the sales team at Pay Simple, a Denver-based e-commerce company, began bank-shopping after graduating from college and picked USAA Federal Savings Bank. “They have no monthly fees,” he said. “They reimburse your ATM fees, and I can also bundle insurance and investments with them.” ......................(more)

http://www.bloomberg.com/news/articles/2015-11-10/millennials-do-not-like-big-banks-and-all-those-fees-they-charge

[LiberalArkie]

1. They are a smart generation. I learn a lot from them. Or did when I was working.

[Phentex]

2. Mine have accounts with a credit union. But one had a savings account for a while...

with a regular bank. It started with birthday money and then odd job money. He never took money out, only made deposits. When he turned 18, they started charging him $4.00 a month for the pleasure of keeping his money in their bank.

He closed it and put the money into the credit union account with zero fees.

[MiniMe]

3. I used to bank with a community bank

Did it since I was in college. A few years ago, Capitol One bought them out. May have to look for another bank.

[Go Vols]

4. My bank has 2 branches

always been for local/small business.

Not a millennial tho.