New Jersey Credit Unions Prepared to Welcome Consumers Marking Bank Transfer Day on Nov. 5

EAST WINDSOR, N.J., Oct. 27, 2011 /PRNewswire/ -- Bank Transfer Day -- a consumer movement that opposes aggressive fees large financial institutions are introducing to recover lost profits from new regulation -- has gained traction in recent weeks. As the movement pushes toward its culmination on Saturday, Nov. 5, non-profit institutions like McGraw-Hill Federal Credit Union (FCU) are highlighting its offerings and inviting customers to switch to a service-oriented, no or low fee credit union as an alternative to competing financial institution's complex fee structure.

Bank Transfer Day started through a Facebook-driven social uprising by a California woman who wanted to oppose anti-consumer tactics being imposed by Bank of America, CitiBank and Wells Fargo, among others. The movement exploded nationally as details of increased fees spread virally. Consumers nationwide are sharing experiences that include being charged monthly checking fees if they don't maintain exorbitant minimum daily balances or meet specific transaction guidelines. Bank of America is drawing the most consumer ire for its decision to stick consumers with a $5 monthly debit card fee, while Wells Fargo experiences similar backlash for its proposed $3 monthly fee.

The Bank Transfer Day movement has led many consumers to switch to credit unions, a majority of which offer free checking without debit card fees. McGraw-Hill FCU's CEO and President, Shawn Gilfedder, who also serves as Chairman of the New Jersey Credit Union League -- which represents 168 credit unions serving over 1.2 million consumers in New Jersey -- can understand why people are deciding to mark the unofficial holiday by moving their funds to non-profit credit unions.

"Credit unions, which are owned by their account holders rather than outside investors, return their excess earnings back to the members they serve. One way we do that is by charging lower and fewer fees," said Mr. Gilfedder. "Another way is by offering more attractive rates on deposit and loan services. Credit unions are a terrific alternative to mainstream financial institutions that are increasingly coming under criticism for what's being perceived as anti-consumer practices."

In contrast to this trend, and in light of consumer interest leading up to Bank Transfer Day, credit unions throughout New Jersey (and nationwide) are communicating messages of low fees, safety, soundness, and high customer satisfaction ratings to consumers.

"We encourage consumers who are fed up with fees to celebrate Bank Transfer Day by joining a credit union and reaping the benefits of a member-owned cooperative focused on delivering financial wellness rather than reaping profits," said Mr. Gilfedder. "We recommend that people research their options to find out if their employer, church, college, or community offers a credit union -- it's a fantastic alternative to the high-fee environment many working families have grown exhausted with."

According to the Credit Union National Association, over 92 million Americans already belong to the nation's 7,500 credit unions. Last year, more than half a million people joined for the following reasons:

• Consumers save more than $6.7 billion a year in lower fees and better rates by using credit unions rather than banks.  That's an average yearly savings of $75 per person or $142 per family (CUNA Member Benefits Survey, March 2011).
• 80 percent of credit unions provide free checking (CUNA 2010-2011 Credit Union Fee Survey)
• More than 70% of credit unions today offer debit/ATM cards (CUNA June 2011 Member Survey)
• Credit unions provide more than 28,000 surcharge-free ATMs nationwide via the CO OP Network
• Numerous independent surveys (e.g., Forrester Research; American Customer Satisfaction Index; Chicago Booth/Kellogg School) have rated credit unions tops in consumer trust and satisfaction.

Information about how to find a credit union is available at www.aSmarterChoice.org -- Website offered by CUNA -- and www.findacreditunion.com.

About McGraw-Hill Federal Credit Union

McGraw-Hill FCU, a member-owned cooperative, is a leading and progressive financial institution committed to members and the community at large through financial technology, financial education and literacy, and a consultative approach to banking. The credit union offers a full range of banking, investing and insurance services to more than 18,500 members worldwide and serves more than 120 companies.  For more information, visit www.mcgrawhillfcu.org, www.facebook.com/mcgrawhillfcu, or view videos at www.youtube.com/mcgrawhillfcu.

CONTACT: Leza Raffel (215) 884-6499

SOURCE McGraw-Hill Federal Credit Union