The Big Bank Challenge is a social media trend where people move their money out of large national banks and into smaller banks or credit unions for a set period
The Big Bank Challenge asks participants to switch their checking account, savings account, or both from a major bank (typically one of the "Big Four"—Bank of America, Chase, Wells Fargo, or Citibank) to a smaller financial institution for a defined time, usually 30 or 60 days. The goal is to experience how a smaller bank or credit union operates and, collectively, to move deposits away from large institutions as a form of economic pressure or protest.
The challenge has no official organizer or rules. It spreads through social media posts, hashtags, and word-of-mouth. Participants choose their own smaller bank or credit union, set their own timeline, and decide whether to move all their accounts or just one. Some people treat it as a permanent switch; others return to their original bank after the challenge period ends.
Key Takeaways
- The Big Bank Challenge is a voluntary social media movement to move deposits from large national banks to smaller banks or credit unions, usually for 30 to 60 days.
- There is no official challenge, no registration, and no penalty for not completing it—participation is entirely your choice and happens on your own timeline.
- Smaller banks and credit unions often charge lower fees, offer higher savings rates, and provide more personalized service, but may have fewer branches and ATMs than large banks.
- Moving your account involves opening a new account, setting up direct deposit and bill pay at the new institution, and deciding whether to close your old account or keep it open.
- Your deposits are protected by the FDIC (at banks) or NCUA (at credit unions) up to $250,000 per account type, so switching does not put your money at risk.
Why people participate in the Big Bank Challenge
Participants cite several reasons for switching. Some object to the fees large banks charge—overdraft fees, monthly maintenance fees, minimum balance requirements—which smaller institutions often waive or set lower. Others want higher interest rates on savings accounts; credit unions and smaller banks frequently offer rates that beat the national average offered by major banks.
A third group participates as a form of protest, viewing the challenge as a way to pressure large banks on lending practices, environmental policy, or customer service. The idea is that if enough people move deposits, large banks will lose revenue and may change their practices to win customers back.
Some participants simply want more personal service. Smaller banks and credit unions often know their customers by name, make loan decisions locally rather than by algorithm, and allow you to speak to a human being without navigating a phone tree.
What happens to your money when you switch
Your deposits remain protected throughout the move. If you open an account at an FDIC-insured bank, your money is covered up to $250,000 per account type (checking, savings, money market, and so on). If you open an account at a credit union, your deposits are covered up to $250,000 per account type by the NCUA (National Credit Union Administration), which provides the same protection as the FDIC.
The transfer itself does not happen automatically. You must open a new account at the smaller bank or credit union, then manually move your money or set up a transfer. Many smaller institutions offer to help with this process and can pull money from your old account if you authorize them. You can also transfer money yourself using online banking, a wire transfer, or an ACH transfer.
If you keep your old account open after moving your money, you can close it at any time. Some people keep both accounts open for a transition period so that any lingering automatic payments or deposits can be redirected before they close the old account.
Differences between big banks and smaller banks or credit unions
| Feature | Big Banks | Smaller Banks & Credit Unions |
|---|---|---|
| Monthly fees | Often $10–$15 per month; waived if you meet balance or deposit requirements | Often $0–$5 per month; frequently waived with no conditions |
| Overdraft fees | Typically $30–$35 per overdraft | Often $0–$20 per overdraft; some institutions offer grace periods |
| Savings account interest rate | Often 0.01%–0.05% APY | Often 0.25%–1.00% APY or higher, depending on the institution |
| ATM network | Thousands of ATMs nationwide; surcharge-free at own ATMs | Smaller network; may charge fees for out-of-network ATMs, though many credit unions share networks |
| Branches | Hundreds to thousands nationwide | Usually fewer than 50; may be limited to one region |
| Loan decisions | Automated or made by centralized underwriting | Often made by local loan officers who know the community |
How to move your account if you want to participate
Start by researching smaller banks and credit unions in your area or online. Look for institutions that are FDIC-insured (banks) or NCUA-insured (credit unions). Read reviews and compare fees, interest rates, and services. Many credit unions let you join based on where you live, work, or go to school; others are open to anyone.
Once you have chosen an institution, open a new account. You will need a government-issued ID, proof of address (usually a recent utility bill or lease), and your Social Security number. This can often be done online in minutes.
Next, move your money. Set up direct deposit at your new institution if you receive a paycheck or benefits. Update any automatic bill payments to pull from your new account instead of your old one. You can do this through your new bank's online banking portal or by contacting the companies you pay (utilities, insurance, loan servicers, and so on).
After your direct deposits and payments have moved successfully—usually after one or two pay cycles—you can close your old account. Some people wait a month or two to make sure nothing is still trying to pull from the old account.
Potential drawbacks of switching to a smaller institution
Smaller banks and credit unions have fewer physical locations and ATMs. If you rely on in-person banking or need to withdraw cash frequently, a limited branch network can be inconvenient. However, many credit unions participate in shared branching networks that let you use other credit unions' branches, and most offer fee-free ATM access through partner networks.
Online banking and customer service may be less polished than what you are used to at a large bank. Some smaller institutions have older technology or slower websites. Customer service may have limited hours, though many now offer 24/7 phone support.
If you need specialized services—investment accounts, business banking, or international wire transfers—a smaller institution may not offer them or may charge more. Large banks have more products under one roof.
Whether the Big Bank Challenge is worth your time
The decision depends on your banking habits and priorities. If you are paying high fees, earning almost no interest on savings, or frustrated with customer service, switching to a smaller bank or credit union may save you money and improve your experience—whether or not you frame it as a "challenge."
If you are satisfied with your current bank and do not want to deal with the logistics of moving accounts, there is no obligation to participate. The Big Bank Challenge is not an official program with deadlines or consequences. It is simply a social media trend that invites people to try something different.
Some people use the challenge as a deadline to make a decision they have been putting off. Others treat it as a temporary experiment to see if a smaller institution works for them. Both approaches are valid. The point is that you control whether, when, and how you move your money.
Frequently Asked Questions
Do I have to participate in the Big Bank Challenge?
No. The Big Bank Challenge is a voluntary social media trend with no official rules, registration, or enforcement. You can move your money anytime, or not at all. Participation is entirely your choice.
Will switching banks hurt my credit score?
No. Opening a new checking or savings account does not affect your credit score. Credit scores are based on credit history (loans, credit cards, payment history), not on which bank holds your deposits.
What if I need to access my money during the switch?
Your money is accessible throughout the move. Once you open a new account, you can transfer funds immediately and begin using the new account right away. You do not have to wait for anything to "settle" before you can spend or withdraw your money.
Can I do the Big Bank Challenge and then switch back?
Yes. Some people use the challenge as a trial period. If you decide the smaller bank is not right for you, you can move your money back to your original bank or try a different institution. There is no penalty for switching back.
What if my employer's payroll system only works with certain banks?
Most employers' payroll systems work with any bank that has a routing number and account number, which all FDIC-insured banks and NCUA-insured credit unions have. If you are unsure, ask your payroll department whether they can deposit to your new institution. The answer is almost always yes.