AUSTIN, TX--(Marketwire - December 18, 2008) - BancVue, a leading provider of products and
consulting to community banking institutions, reported a 96% jump in
deposits in the third quarter of its REWARDChecking® accounts, a free
checking account offered by more than 450 community financial institutions
across the country (view local institutions at
www.checkingfinder.com).
"It took $4 gasoline to get folks to think about their driving habits,"
said Don Shafer, Chairman of BancVue. "Similarly, it took a meltdown of the
megabanks and other financial institutions to get consumers really thinking
about where they are putting their money, who they can trust and what
results they should expect."
The deposits into community banks' REWARDChecking accounts reflect a
growing trend in deposits among community banks with assets of less than
$10 billion. According to the FDIC, these banks have seen an increase in
deposit growth this year from a minus 0.77% in Q1 to a positive 2.06% in
Q3. Larger banks witnessed a 3.81% decline in growth of deposits for the
same period.
At the same time, the Federal Reserve reported that October deposits and
lending at community banks outpaced the overall industry. Between October 1
and October 22, community banks saw deposits rise 1.1 percent, or nearly
$27 billion, to more than $2.4 trillion. For the same period, the nation's
30 largest U.S. chartered banks saw $44 billion, or 1.2 percent of
deposits, walk out the door, leaving them with less than $3.8 trillion.
"Through products like REWARDChecking, community financial institutions are
winning back customers from the faltering megabanks and investment houses,"
continued Shafer. "Americans are indicating that they enjoy investing their
money locally, and they benefit from high yields, fiscal safety and
customer service."
Further confirming the point, month-to-month applications on
CheckingFinder.com, a website that connects consumers with community
financial institutions offering high-yield checking accounts, jumped 14%
from July to August, 46% from August to September, and 53% from September
to October. A small sampling of applicants on the site indicated nearly
seven out of 10 were moving their funds to community financial institutions
from large banks.
To illustrate the competitive yields offered from a variety of
different-sized banks, the following table compares community and megabanks
(as of December 15):
COMMUNITY BANKS YIELDS PRODUCT
Community Bank of Pleasant Hill, MO 6.10% High-yield Checking
First Robinson Bank, IL 6.01% High-yield Checking
Legence Bank, IL 6.01% High-yield Checking
Community Bank of Raymore, MO 6.01% High-yield Checking
Three Rivers FCU, IN 6.01% High-yield Checking
Florida Central Credit Union, FL 6.01% High-yield Checking
Union State Bank/Bank of Atchison, KS 6.01% High-yield Checking
Bank of Granite, NC 6.00% High-yield Checking
MEGABANKS
WAMU 5.00% CD (5 years)
eLoan 4.75% CD (6 years)
Schwab 3.60% CD (18 months)
ING 3.75% CD (1 year)
HSBC 3.50% CD (1 year)
Countrywide (BofA) 3.10% CD (9 months)
eTRADE 2.25% CD (12 months)
For more information on community banks and credit unions that offer high
interest checking accounts, visit
www.checkingfinder.com.
About BancVue
BancVue is the leading provider of innovative software, marketing, and
consulting solutions to community financial institutions nationwide.
Serving nearly 500 community banks and credit unions around the country,
BancVue's solutions allow these institutions to compete and win in the war
for deposits. Consumers benefit from the development and implementation of
BancVue's innovative products, including REWARDChecking®, a free
high-yield checking account specifically designed for community banks and
credit unions. For more information on BancVue, visit
www.bancvue.com.
Contact Information: Contact:
Dan Mahoney
www.csg-pr.com
970.405.8060