Adventures in Banking, part 2

Just after Banknorth informed me of its new name and I was feeling worried about ongoing mergers, I stopped by the window of the University of Massachusetts-Amherst Credit Union to see what other options there are for depositing and storing money. I had never understood credit unions –were they as convenient, safe, and free of fees as banks could be? Was the deposited money actually put to better, more ethical use? Were credit unions democratically run? What is the difference between a bank and a credit union, really?

I was open to switching to a credit union, but also felt reluctant to close my account at Banknorth, wary of the hassle and full of unanswered questions. I decided that before making any moves, I would talk with people at my bank and at the credit union, and see what other options exist. I wanted to proceed in an informed way.

To start my research, I stopped by my Banknorth branch –I was quite nervous actually, checking my reflection in the bank window to make sure I didn’t look too eccentric. I didn’t want them to think I was researching for a bank robbery.

I sat down with a customer service rep, and said, “I m working on a kid’s book/blog, and I want to know if I can ask you a few questions.”

She said, herself nervous but cheerful, “Okay, I’ve only worked here 7 months, but… okay.”

I asked:

“Who decides what loans and investments are made?
Where is the money invested?
What fraction of the deposited money is actually on hand in the bank, and what fraction is lent out at a given time?”

The customer rep said she didn’t know the answers to any of these questions and that she’d like to read this bank blog/ kid’s book when it’s finished. She told me to try the assistant manager.