UPDATE: Local Banks Benefit from Bank of America Checking Fees Announcement [POLL]

Over the past few weeks the national news outlets have been reporting the announcement by Bank of America to establish checking account fees for most customers. This has caused an enormous backlash amongst the bank's customer base, and many are defecting to smaller banks and credit unions who are still offering many free services.

This includes several local banks and there is even a Facebook page with more than 24,000 followers promising to make such a defection by Friday, Nov. 5— a reference to the famous British observance of an attempt on the life of King James 1 and the slogan "Remember, Remember the fifth of November."

"We’ve actually seen an influx of new members since the start of the year when not only Bank of America, but other financial institutions began to do away with free checking," said John Lahair, public relations manager of the . "The recent announcement by Bank of America to start charging a monthly debit card fee was the proverbial breaking point for many people. We’ve seen a definite increase of new members over the last few weeks."

Those who are affected by the new fees are essentially everyone who's account contains less than $20,000 said a recent Atlanta Business Journal article.

"(BOA) is eliminating the Advantage checking account program, which required just $5,000 in checking and savings deposits to waive the ($5) fee. It will now take at least $20,000 in deposits and investment account balances to avoid the debit card fee as part of the bank’s “Premium solutions” offering, said the report. 

Customers holding a mortgage with Bank of America will also be able to waive the fee, the Charlotte Observer reported.

Several media outlets have claimed that this move will help shave dead weight from the often beleaguered Bank of America, but this is not the first time there has been a defection movement when major banks have announced new fees.  

"It's not the first time a popular movement has encouraged consumers to dump big banks," said an AP report. "During the 2009 holiday season, The Huffington Post got behind the 'Move Your Money' project, which used the image of the good-guy community banker played by Jimmy Stewart in the movie 'It's a Wonderful Life,' to encourage customers of the banking world's 'Mr. Potters' to find alternatives."

This recent move by Bank of America has revived that movement to move toward local banks in 2011. 

"Yes, we are absolutely seeing some Bank of America customers deciding to switch to ," said Ellen Dorian, senior vice president of marketing and human resources. "We’re prepared to do all the legwork for people’s direct deposit and bill pay. We’ll set up customer’s bill pay vendors so they don’t have to. Our goal is to make the switch as easy as possible."

These local banks have upped the ante in the services department since the announcement by Bank of America and the other national banks, offering many free services to lure in more customers unhappy with those larger banks. 

"Common marketing theory says that the best time to attract new customers is when they are disgruntled with their current bank and thinking of a change," said Tony Battista, a vice president with the bank. "Clearly, that is the case in today’s markets and our advertising is designed to make people aware that St. Mary’s Credit Union is a great alternative." 

Local banks are promising significant savings and cash back in some cases. 

"We’ve just started a three-month long promotion that we’ll pay new members $5 to use their debit card for the first three months," said Lahair. "After that, it continues to be free— saving the member up to $60 a year over Bank of America."

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