Friday, December 4, 2015

Millennials Ditch Big Banks and Go Local With Their Money

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.”

Read the entire article and MoneyRates.com's semi annual survey here courtesy of Bloomberg.com.