Getting the most from your bonus, article from MSN.com

Happy LAST THURSDAY of 2012!! We made it through another year. I hope you have big plans to celebrate the start of 2013 and are thinking about what to do with that year-end bonus you might be receiving. If you’re still not sure, Richard Barrington from MoneyRates.com has these suggestions for getting the most out of that bonus:

1. Treat yourself -- within reason.

Splurge. Indulge. That may not be what you were expecting to read in an article on financial advice, but it is very important to get some enjoyment out of your achievements. The important thing is to set limits. Otherwise, your financial windfall may make you feel like you have a license to spend money, which can lead to burning through more than the windfall itself.

Instead, budget a portion of your bonus and reward yourself with some short-term gratification. Then take the rest (ideally, the majority) of that bonus and put it to good long-term use.

2. Pay off credit cards.

While interest rates generally have been falling to record levels, the Federal Reserve reports that rates on outstanding credit card balances recently reached their highest level since 2010, at 13.22%. As a result, using your bonus to pay off a credit card may be one of the most productive moves you can make with it.

3. Get your mortgage above water.

With 30-year mortgage rates now around 3.5%, the only thing that has stopped some people from refinancing is that they still owe more than their homes are worth, due to the decline in housing values. With housing prices starting to recover somewhat, a year-end bonus might make the difference in getting your current mortgage loan above water. That, in turn, could put you in position to take advantage of some of the lowest mortgage rates on record by refinancing.

Look at this as the best of both worlds: You get to spend the money by putting it toward your home's equity, but you still get some ongoing benefit from that money in the form of interest savings.

4. Max out your retirement contributions.

If you haven't reached the contribution limits on tax-deferred plans such as an employer-sponsored 401k or a traditional IRA, then putting your bonus into one of those plans can have multiple benefits: You can defer paying taxes on the amount contributed, build your retirement savings and compound those savings with future investment earnings.

If your employer makes 401k matching contributions, you might even be able to boost the effective size of your bonus by qualifying for that matching money.

5. Start a college savings fund.

If funding a college education is in your future -- whether for yourself, your spouse or a dependent -- then contributing to a tax-advantaged college savings program such as a 529 plan might be a good use for your bonus. According to figures from The Economist, U.S. college tuition in 2010 represented 38% of the median U.S. annual compensation. For most people, that's too heavy a load to bear all at once, so some advance savings can make paying for education much more manageable.

Not only that, but a 529 plan can allow you to take a tax deduction now and pay no tax on distributions from the plan later on -- as long as the money is used for qualified education expenses.

6. Rebalance your portfolio.

As your goals, income and gains or losses change, your investment portfolio needs to be readjusted periodically. Rather than having to force security sales to make these adjustments, the most efficient way to rebalance a portfolio is to do it when introducing new money into the program.

7. Get a better savings account rate.

If you are putting some of your bonus into a savings account, take the opportunity to ensure that your account is offering a competitive yield. Be sure to shop for the best rates before you settle on a new savings account, and be aware that making a larger deposit might qualify you for higher rates.

8. Eliminate checking account fees.

Free checking accounts are getting harder to find, but banks generally will waive checking account fees if you meet a minimum balance requirement. The money from your year-end bonus might beef up your account enough to meet that threshold, and those savings could amount to more than you would earn in interest on the same amount of money.

A year-end bonus is your reward for 12 months of hard work. If you put that bonus to work wisely, you could see it continue to reward you over the next 12 months -- and beyond.

Winter Hours

It's snowing in Springfield!

We wish you and your family a Merry Christmas and a Happy New year, from all of us at Systematic Savings Bank. In light of the season, we have some winter hours to share with you:

• Systematic will be open from 8 a.m. to 12 p.m. December 24 for Christmas Eve and December 31 for New Year's Eve.
• We will be closed December 25 for Christmas and January 1 for New Years.



Pictured left to right: Phyllis Ann, Judy, Benny, Dani, and Anne


Have a safe and happy holiday season! May your days be merry and bright.

Help. Give. Hope.

In light of the Christmas season, I want to pay a special tribute this week to a local non-profit organization that is dear to our hearts year-round: Help Give Hope. Michael Brady, our president at Systematic Savings Bank, has been volunteering every season for years in Help Give Hope’s Christmas Project and is happy to be a part of this programs growth.  

Help Give Hope is an organization based right here in Springfield that assists needy families, in particular children, in southwest Missouri. It was founded originally to provide help during the holiday season, but Help Give Hope now offers year-round assistance to children in need.

During last year’s Christmas Project Help Give Hope provided clothing, toys, furniture, appliances, food and automobiles to 228 families— including over 800 children.

Throughout the year they assist families with utility, rental assistance, gas vouchers and educational help. They even offer a used car program.

100% of all donations to Help Give Hope go directly to the families in need and all donations are private.

If you’re interested in donating or volunteering with Help Give Hope this Christmas season, please check out their website: www.helpgivehope.org they could always use another helping hand.





Beginning to look a lot like Christmas

It’s beginning to look a lot like Christmas at Systematic Savings Bank.

The Systematic Christmas Tree

This week we’ve been decorating for the holidays. So I thought while we were in the spirit of things, this would be the most appropriate time to update everyone on the happenings here at Systematic.

First of all, thanks to everyone who participated in our holiday giveaways. We received a great response from you guys. We will be contacting winners on December 3^rd so make sure to be checking your email, voicemails, and Facebook messages.

Second, the December art walk is next Friday, December 7 from 6 p.m. – 9ish. We’ll be showcasing paintings from local artist, Tyler Patterson and various art works from Drury University students. As always, we’ll provide fresh-baked cookies and hot coffee all evening. Don’t miss out! We’ve even decorated for the festivities. See you there.

Also, know that if you open a checking account with us before December 31^st of this year you get a $10 gift card to the Mud House. Who doesn’t love free espresso?

From all of us at Systematic Savings Bank, Happy Holidays!

Paint the Town Red Holiday Giveaway

So...the holidays are approaching. That means this is the perfect time for me to shamlessly promote our new giveaway. Read below for all of the rules on how to enter.  

Contest entry time: November 1st – 22nd (3 weeks) Act now!

 

Paint the town red this holiday season with one of our two holiday giveaways. From all of us at Systematic Savings Bank!

Simply “like” our Facebook page anytime between November 1st-November 22nd, and you could win the Perfect Night Out in Downtown Springfield Package for two. Enjoy a movie at the Hollywood Theater, dine your heart out at The Aviary Café and Creperie, and then relax afterward at the Mud House. Gentleman, we got your back and won’t tell her otherwise. Ladies, don’t miss this opportunity to doll up and go out! That’s an $80 value, on us. Must be 17 or older to enter. Make sure you send us a Facebook message with your name, phone number, and Email address so we can contact you if you win.

Once you “like” our Facebook page, tag us in a status and tell everyone about your favorite Systematic Savings Bank post, blog, or event by November 22nd to enter for a chance to win our follower-appreciation giveaway. You could win one of three $25 gift-cards to the new Scotch & Soda on South Avenue. Be the first of your friends to try it out! Must be 21 or older to enter. Please enjoy responsibly.

The winners of both giveaways will be announced on December 3rd. Check our Facebook page for the announcement.

No purchase necessary. Be prepared to present your ID when you come in to pick up either prize. If you already like our Facebook, you are automatically entered into the Downtown Springfield package for two. Make sure you tag and mention us in a status to enter for one of three gift-cards to Scotch & Soda. Systematic Savings Bank is not responsible for lost or stolen gift-cards or any misdemeanors that may occur when the cards are given to the prize-winner(s).

Financial Horoscope

Happy belated birthday November 1sters J

The holidays are on their way and it’s time for some money crunching. If you’re interested, here’s what the stars say about your finances this week:

Scorpio (October 23-Nov 22) Financial Horoscope for this week

“Despite some financial tension as you move into the new week, whether it came to a head over the weekend or had been building for several weeks before hand, it has already come to a head and is already revealing itself to be a blessing in disguise. It's an opposition between lucky Jupiter in your financial sector and Mars in your income sector that has brought things to a head, but easing from Monday this is more likely to have motivated you to take action where you might not otherwise. Having Mars in your income sector means that you're battle ready, but without a battle to fight this opportunity is wasted, with a need to bless anything that evokes your fighting spirit. Mercury's return to your income sector on Monday gives you the smart head for money to go with this.”

If you’re not a Scorpio, and would like to find your own financial horoscope for this week, visit http://www.astrolis.com/money-horoscopes/.

 

Whew. That star thing is over my head. But you don’t have to leave it all to the stars. Come visit with us at Systematic Savings Bank. We can help advise you on your financial needs. P.S. We also have a fix for that caffeine need in the morning.

Happy Halloween!!



Halloween-themed gif

With Halloween only six days away, I know what you’re thinking, “crap! I still need to buy an eye patch, a large feather, boots, and striped socks for my pirate costume and some of those Sour-Patch-Kid candies my neighbor’s kids like so much!” You’re not alone. In fact, according to The Marietta Times, Halloween spending is up this year and is second only to Christmas in cost.

Consumer spending on Halloween costumes, decorations, and candy is expected to rise as a record 170 million people are projected to spend as much as $8 billion. That means that the average person, according to the National Retail Federation, is expected to spend $79.82 on the holiday’s preparations, up from $72.31 last year. Wow!

Looking for cheap costumes to relieve the costs this Halloween? Here are some of my favorite ideas from the internet:

·         Pin-up Girl (females only) Pin safety pins in the shape of an arrow pointing upwards onto a colored shirt

·         Gangrene (for groups) the whole gang wears green and travels together.

·         Gangster Some may prefer the under-dressed Sopranos look, but for a traditional gangster you'll need dress pants, a vest, a fedora, and a toy machine gun. Or you may prefer to nix the gun for an empty violin case.

·         Backwards Man This simple concept was popular in the 1980s and is due for a revival. Simply put your clothes on backwards, pad your front to give yourself some "back" and voila, you're ready.

·         The Nerd Some can go from work to Halloween parties without a change of clothes, but for non-nerds, pair high-water pants, a short-sleeved dress shirt buttoned to the top with pens in the pocket and appropriate ink stains. Take the nose and mustache off a set of Groucho glasses and you've completed the look.

·         Blackmail Wear all black and glue postage stamps to your chest.

·         FAKE BLOOD RECIPE (you have endless opportunities with fake blood): 1 cup Karo syrup, 1 Tbsp. water, 2 Tbsp. red food coloring, 1 tsp. yellow food coloring. Mix everything together in a mixing bowl. You may need to add some blue to get the right color.

Also, make sure you check out some of Springfield’s downtown activities this Weekend!! Go to www.itsalldowntown.com and click EVENTS for more information. Good luck on finding a costume and have a safe ghouls-and-goblins holiday. J

Debit, Credit and Prepaid Cards: Know the Difference

Hello Readers! For the past couple weeks, we’ve been going through the FDIC Consumer News 2012 newsletter.  This week, I have another article from the same issue that I thought you’d be interested in reading. I’ve posted the material below:

Debit, Credit and Prepaid Cards: There Are Differences

Many consumers use debit, credit and prepaid cards, often interchangeably, to purchase goods and services. However, these three types of cards are quite different. Consider the following.

Each card works differently. If you use a credit card, you are borrowing money that you must pay back, in addition to interest, if you do not pay the balance in full by the due date. But, if you use a debit card, which is issued by your bank and linked to your checking or savings account, the money taken from the account is yours and you will never incur interest charges.

With prepaid cards, you are spending the money deposited onto them, and they usually aren't linked to your checking or savings account. Prepaid products include "general-purpose reloadable" cards, which display a network brand such as American Express, Discover, MasterCard, or Visa; gift cards for purchases at stores; and payroll cards for employer deposits of salary or government benefit payments. Be aware of the possibility of unanticipated fees and, with certain types of these cards, the potential for limited consumer protections against unauthorized transactions.

Watch for fees. You may be charged an overdraft fee if you use a debit card for a purchase but there aren't enough funds in the account and you have given your bank written permission to charge you for allowing the transaction to go through. "You can always revoke that authorization if you don't want to risk paying these fees, and future debit card transactions will be declined if you don't have the funds in your account," explained FDIC Consumer Affairs Specialist Heather St. Germain.

Similarly, a credit card issuer may decline a transaction that puts you over your credit limit unless you have explicitly agreed to pay a fee to permit over-the-limit transactions.

Prepaid cards are sometimes marketed with celebrity endorsements and promotional offers. "While some prepaid card offers seem attractive, remember that you may have to pay various fees on the card," said Susan Boenau, Chief of the FDIC's Consumer Affairs Section. "These costs may include monthly fees, charges for loading funds onto the card, and fees for each transaction."

As an alternative to a traditional checking account or prepaid card, consumers who don't plan to write checks but do want to bank electronically may want to consider opening a "checkless" transaction account that allows you to pay bills and make purchases online or with a debit card.

Your liability for an unauthorized transaction varies depending on the type of card. Federal law limits your losses to a maximum of $50 if a credit card is lost or stolen. For a debit card, your maximum liability under federal law is $50 if you notify your bank within two business days after learning of the loss or theft of your card. But, if you notify your bank after those first two days, under the law you could lose much more.

Your liability for the fraudulent use of a prepaid card currently differs depending on the type of card. Federal law treats payroll cards the same as debit cards, but currently there are no federal consumer protections limiting your losses with other general-purpose, reloadable prepaid cards and store gift cards. The Consumer Financial Protection Bureau is considering increasing the consumer protections for prepaid cards, but any action is likely to be a year or more away.

In addition, the funds you place on a prepaid card may or may not be covered by deposit insurance in the event of a bank failure, depending on how the account where the funds are held is set up and whether the bank or the card issuer's records at the time of the bank closing identify each cardholder's ownership interest.

For all cards, industry practices may further limit your losses, so check with your card issuer.

Also take steps to guard any cards from thieves. Never provide any numbers in response to an unsolicited phone call, e-mail, text message or other communication you didn't originate. Immediately review your statement for unauthorized transactions.

To learn more about the three types of payment cards, visit www.fdic.gov/consumers/consumer/information/ncpw/index.html, which includes an FDIC "quick guide" to understanding the differences in the cards.

Changing Banks

Remember: today is the First Friday Art walk downtown. Systematic Savings Bank will be open and showing Drury-student artwork. Stop in today and grab yourself some coffee! It's chilly outside.

This week I wanted to share another article from the FDIC Consumer News Summer 2012 issue. If you are considering changing your banking institution, it may just be the useful information you need. Here it is:

Thinking About Changing Banks? Consider Your Options

If you're thinking about leaving the bank where you have your checking or savings account — perhaps because it's no longer convenient or it isn't meeting your needs — there's plenty to think about before you switch to another institution. Here's how to understand your options, get a better deal, and perhaps avoid stress.

Should You Stay or Go?
Figure out what you want most from a bank, then compare the costs of doing business at different institutions. However, don't let short-term promotional offers drive your decision.
Discuss matters with your bank. For example, if you're considering closing an account because the institution is charging a new fee, ask if you can avoid that cost by, for example, signing up for direct deposit. "And if you notice a better offer or rate from a competitor, ask if your institution can match it," said Bobbie Gray, an FDIC Supervisory Community Affairs Specialist.
If You Decide to Go
Perhaps you found that the benefits of changing accounts are worth more than any costs involved. Here are steps that may help ensure a smooth move.
Arrange for future direct deposits to go to your account at the new bank. The process may take several weeks so plan ahead. Similarly, if you automatically transferred money from checking to savings at your old bank, start making those transfers at your new bank as well. This also might be a good time to increase your savings commitment.
Consider starting small. Many advisors suggest that you open your new checking account at or slightly above the minimum balance to avoid fees if you do not expect to begin using it right away. Keep enough money in your old account long enough to pay remaining bills.
Decide if you want to write checks and, if so, where to buy them. Many people choose to conduct transactions using a debit card instead of writing checks. But if you do want to order checks, remember that you are not required to purchase them from your bank. You may be able to find a better deal from a check printing company other than the one suggested by your bank.
Have any bills that are automatically paid out of your old account transferred to your new account. If you authorized a utility or another company to directly withdraw funds from your checking account, you may need to go back to that merchant to make the necessary changes. If instead you're using your bank’s online bill-pay feature to automatically handle these incoming bills, cancel at your old bank’s Web site and enroll at the new bank's site, a process that can take a few days to finalize.
Guard against overdrafts or late fees during your transition period. Carefully monitor each account at your old bank that is connected to direct deposits or automatic bill payments in case you need to pay a bill another way, such as in person or by check, to avoid being charged a fee.
Make sure that all withdrawals have been posted to your old checking account before you close it. Prematurely closing the account before all checks, debit card payments, ATM withdrawals or other transactions have been paid from the account could trigger fees or other problems.
Carefully shred and securely dispose of all your old checks and debit/ATM cards after your account is closed. "Don't assume that just because your account is closed that checks or debit cards associated with the old account cannot be used by a thief and cause hassles for you," added Luke W. Reynolds, Acting Associate Director of the FDIC’s Division of Depositor and Consumer Protection.
If you are closing a credit card account, pay attention to the tips above, particularly ensuring that automatic payments or pending purchases will be handled without incident.
For additional guidance on how to avoid hassles or unnecessary fees, speak with customer service representatives at your old and new bank.

Understanding the risks of adding others to accounts

Hello readers! I found and article from the FDIC Consumer News summer2012 edition I thought might be useful. If you haven’t already read it, check it out. I’ve posted the material below:

Understanding the risks of adding others to accounts:

Consumers often wonder about whether or how to add someone else, usually a relative, to a bank account. These decisions are not to be taken lightly. FDIC Consumer News can’t advise you on how to share your money or your accounts, but we can give you guidance about the implications of adding names onto deposit accounts, safe deposit boxes and loans.

Adding co-owners to a deposit account vs. alternative arrangements. Under FDIC rules, a joint account is a deposit account owned by two or more people who have equal rights to withdraw 100 percent of the deposits and to close the account. “For a couple wishing to share common funds, the upside is that each person may write checks and pay bills from the account, which is certainly a convenience in managing a household or as someone needs assistance,” said Joni Creamean, Chief of the FDIC’s Consumer Response Center. In addition, each co-owner is insured for up to $250,000 for his or her share in all joint accounts at an insured bank. “For someone who wants to add co-owners primarily for convenience purposes or accessing funds in an emergency, carefully consider how limits on withdrawal rights could affect your insurance coverage,” warned Martin

W. Becker, an FDIC Senior Deposit Insurance Specialist. For example, if a single mother adds two children as co-owners but specifies that they must act together to withdraw any funds, the three individuals do not have equal withdrawal rights and the account would not necessarily be FDIC-insured up to $750,000 ($250,000 for each

person named). “In this situation,” Becker explained, “the FDIC would have to look to state law to determine the ownership interest of each person and would provide deposit insurance coverage accordingly.” Becker noted that there is another, better way to give someone limited access to a deposit account on an as-needed basis

without granting ownership rights. That is to obtain a power of attorney — the written authorization for one or more people to represent or act on another’s behalf in financial affairs or other personal matters. Powers of attorney can be broad, allowing unlimited access, or narrow, limiting access to accounts.

Allowing others to access your safe-deposit box.

The rules and procedures for safe deposit boxes can vary by state and by bank, so ask your bank about the options for granting someone access and what you would have to do if you later change your mind. “Remember that this person could go to the box and take anything out, without your approval,” explained Edward Nygard, an FDIC Senior Consumer Affairs Specialist.

Adding co-owners vs. “authorized users” to a credit card account.

A co-owner is financially responsible for all debt incurred, including any charges by an authorized user. Depending on the cardholder agreement, authorized users may or may not be financially responsible for any debt on the card. A card owner also may be able to place restrictions on authorized users, such as limits on amounts that can be charged.

Think carefully before you co-sign a loan.

“If the other co-signer does not pay the debt, you will have to,” Creamean said. “You may also have to pay late fees and collection costs, which increase the debt amount. Additionally, your credit rating could be affected if this person fails to pay or pays late.” Want more guidance about adding names to accounts? Consider consulting an attorney, your banker or another advisor.

Update! Plus, awesome contest for MSU students! Read on...

It’s Thursday again! You know what that means, time for me to update you on what we’ve been up to here at Systematic Savings Bank.

First of all, the Downtown Art Walk for September was supposed to be the 7^th, but then that horrible storm brewed and we closed early on account of it. We still have Drury student artwork hanging on our walls, so feel free to come by and see it anytime you’re strolling downtown! We always have coffee and cookies, made fresh daily. Be sure to check us out!

 We will also be open October 5^th for the next Friday Art Walk, and the same artists will be showcasing their work. You have plenty of opportunities to come by, so don’t miss these great paintings!

Second, I want to take the time to talk about a great opportunity for all Missouri State University Students. As most of you know by now MSU’s newspaper, the Standard, is hosting a free tuition contest. Every week this semester, the Standard runs instructions in the paper on how you can enter to win tuition for the spring 2013 semester. You could potentially enter 10 more times this semester; don’t forget to pick up the new issue every Tuesday on the MSU campus. There are also weekly prizes. Systematic Savings Bank is sponsoring a third of the contest!The ultimate winner will be announced in the December issue. We can’t wait. Good luck!! :)

More on Money Market accounts

Happy Thursday!!

This week's blog post is a response to a reader's concern on Money Market accounts, addressed on a previous blog. The comment was a valid concern that I felt needed to be addressed and accessible to everyone. Here's the link to said  blog and comment: http://mysystematic.blogspot.com/2012/06/money-market-accounts.html

, and here's our reply. Hope this helps!: 

Why a bank might offer a more attractive interest rate on a Money Market Account consists of several factors. We have to look at the bigger picture. Please consider the following:

Remember…the rule of thumb is that typically the more restricted an account is (or the less access you have to your funds) the higher the interest rate you will earn.

•             Interest Bearing Checking Accounts typically do not have restrictions on the number of withdrawals that can be made, so typically the rate will be a less than you see for a Savings Account or Money Market.  At Systematic, our checking with interest accounts have an annual percentage yield (APY) of 0.50% with an interest rate of 0.50%.

•             Savings Accounts – as with Money Market Accounts – are governed by Regulation D.  This regulation dictates how many withdrawals are allowed on these types of accounts.  With a savings account, you do not have the opportunity to write checks as you do on a money market.  Personal savings accounts with us have an APY of 0.50% and an interest rate of 0.50%. Our money market accounts are based on a tiered system:

$0-$9,999.99                       0.45%APY and 0.45% interest rate

$10,000-$24,999.99            0.55%APY and interest

$25,000-$49,999.99            0.60%APY and interest

$50,000+                             0.70%APY and interest

•             Certificates of Deposits allow you to park a certain amount of money, for a certain amount of time, and receive a set interest rate for the term of the certificate.  During this set term you are not allowed to make deposits or withdrawals, however some banks will allow you to take the interest on a monthly or quarterly basis or you may make a one- time withdrawal of interest paid on the account.  Because of the limited access, you will typically earn a higher return.  For example, our 6 month CD has an APY of 0.41% and an interest rate of 0.40%, our 12 month CD has an APY of 0.56% and an interest rate of 0.55%, and our 24 month CD has an APY of 0.81% and an interest rate of 0.80%.

Because the Money Market and Savings Accounts are being governed by Regulation D, they require additional monitoring on the bank’s part to ensure that our customers do not exceed the number of transactions allowed.  If the allotted number of transactions is exceeded, we are required to send out notification to the customer. After a certain number of times the limit is exceeded, we then have to either move the funds into a non-interest bearing account or close the account.  We are also required to save a record of this correspondence and any changes made to resolve the excessive use for a specific amount of time and then provide the record to examiners for review when requested.  We offer you more attractive rates to encourage saving and discourage excessive transactions in these accounts. We don’t want to have to move your funds (then you lose the opportunity of earning interest on the account) or entirely close out your account due to Regulation D. Really we are looking out for you. 

Students!!

Happy Thursday Readers!

I wanted to take this Thursday to let you know about an awesome back-to-school offering we have here at Systematic Savings Bank. It’s for a limited time though, so hurry in!

We know the first week of school is hectic. Summer comes to an end; you get last minute supplies and then all of the sudden you dive into textbooks, classes, and studying on top of part-time jobs or extracurricular activities.

Systematic Savings Bank has got your back. We know just what you need to help make this semester’s transition a little smoother: espresso.

Now when you open a checking account with us, we’ll give you a $10 gift card to Springfield’s downtown coffee shop, The Mud House. Limit one per person. Offer ends December 31, 2012. Never been to the Mud House? Now’s the perfect time to check it out! For starters, here’s their website: http://www.mudhousecoffee.com/.  Their lobby is just about as cool and comfortable a space as ours. Get your gift card from us, get a free coffee from them, and find yourself a weekly study spot on one of their couches or even one of ours!



Inside the Mud House!



For more information, call us at 417-862-5036 or stop by our 318 South Avenue location and grab yourself some of our chocolate chip cookies, baked daily!

Choosing an account that works best for you

Choosing the right bank account takes knowing your own financial habits and doing a little bit of research. Once you have done so though, you may find that you save yourself money by avoiding unnecessary fees on certain accounts – like we talked about in last week’s blog (http://mysystematic.blogspot.com/2012/08/bank-fees.html). There are abundant options for you to choose from in accounts, you just have to know where and how to look. Or come by and discuss your needs with us, we’d love to help. Don’t limit yourself to a standard checking or savings account, check out certificates of deposit or money market accounts. Also, make sure you research credit unions or other alternative financial institutions. You don’t have to stick with a traditional bank, but you should stick with a business you trust and have an account that serves you and your needs, rather than having to serve the account or institution. It’s all about being well informed. The Federal Deposit Insurance Corporation, or FDIC,  wrote a short article on 10 questions you need to ask yourself before choosing an account and tips to help you narrow down the choices. I’ve provided the informational link below. I think it contains some useful information to help you get started:

http://www.fdic.gov/consumers/consumer/news/cnsum12/chooseaccount.html

If you have any additional questions about finding the right account for you, or have questions about any of our accounts here at Systematic Savings Bank, don’t hesitate to give us a call or stop by our 318 South Avenue location and help yourself to some fresh coffee or cookies. We’d love to chat with you. Our number is 417-862-5036. Some of our information is online at www.MySystematic.com, check that out too!

Bank fees

Do you know what bank fees you’re paying? Knowing that banks may charge fees for certain behaviors and transactions on your account and understanding specifically what you can do to avoid those fees at your bank, can save you money. Nessa Feddis, vice president and senior counsel at the American Bankers Association, says that the fees banks impose are created because banks now offer their customers more services than ever before – like ATMs and online banking – services that cost the banks money. Many of the fees you’ll find though are unnecessary and avoidable. There may be charges for returned mail, foreign transactions, receiving paper statements, using over the maximum allotted electronic funds transfers, or more. Don’t pay your bank more than you need to, and don’t bank with a financial institution you don’t trust to keep you informed of these fees.

U.S. News spoke to banking experts to shed light on lesser-known bank fees and provide ways to avoid them. I’ve posted a few below:

1.       Early account closure fee.

Many banks require you to have your account open for a certain amount of time before closing it, or else you will get slapped with a fee. To avoid that early closure fee, make sure your keep your account open past the minimum period.

2.       Monthly or annual maintenance fee.

A number of banks charge monthly or annual maintenance fees for certain accounts. For example, a regular checking account at Bank of America comes with a $12 monthly maintenance fee. However, if you fulfill any number of requirements, such as maintain a minimum daily balance in checking of $750 or more; you can get the fee waived. Check your bank's policy to see if you're being charged a maintenance fee and to find out ways to avoid it.

3.       Minimum Balance Fee.

Some banks charge a monthly fee for customers with low account balances. To avoid a minimum balance fee, review your bank’s policy to see what amount you need to maintain.

4.       Returned Deposit Fee.

If you deposit a check that bounces, your bank could charge a fee. Some banks will charge 12 or 15 dollars per returned deposit item (or bounced check)! Many small banks and credit unions don’t tag on a returned deposit fee; you might want to look into changing your bank if you think you’re going to encounter a lot of bounced checks.

5.       Lost debit card fee.

Most banks charge you to get a replacement card, and if you’ve misplaced your debit card, the fee may be unavoidable. To lessen the blow, you don’t have to request expedited delivery on your new card – some banks charge extra for rush orders – you can simply use cash for payments or a different card while you’re waiting for the new one. 

6.       Paper statement fee.

Receiving paper statements could be costing you. A lot of banks say that paper statements are expensive to produce and they are not environmentally friendly, so banks will try to dissuade people from getting them by placing a fee. U.S. Bank charges customers up to $2 a month on some checking accounts for paper statements. You have the option to search for a bank that doesn’t charge a fee for paper statements or signing up for electronic statements. Most banks provide electronic statements free of charge.

7.       Returned mail fee.

When you move, a mail forwarding request with your post office may not be good enough for your bank. Many banks print "return service requested" on their envelopes, so your mail gets sent back to the bank if it can't be delivered, upon which a number of banks charge a fee. U.S. Bank, for example, charges a $5 fee for the second and subsequent months that a statement is undeliverable. Make sure you update your address with your bank upon moving.

8.       Human teller fee.

Some banks even charge a fee for using a person to handle certain transactions. For a Bank of America checking account, there's no fee when you choose online paperless statements and make your deposits and withdrawals online or with an ATM. However, if you use a teller, you have to pay the monthly maintenance fee of $8.95. To avoid this, make sure you seek out bank accounts that don’t levy this charge. Also, choose an account that aligns with your behavior.

It’s a goal here at Systematic to keep our friends and customers informed on all important banking policies, so that you can make informed decisions about your financial needs. We’re not hiding anything.

If you have any questions about this blog or suggestions for next week, don’t hesitate to comment below!  

All about community

With the London 2012 Olympics well underway, communities are banding together to watch and support Team USA. It is events like these that really make us proud of the country we call home. As important as it is to support our country, it is also important to support our individual communities. For instance, I’ve learned about several advantages to community banks from icba.org that I’d like to share with you. According to the Independent Community Bankers of America:

• Community banks focus attention on the needs of local families, businesses and farmers. Conversely, many of the nation's megabanks are structured to place a priority on serving large corporations.
• Unlike many larger banks that may take deposits in one state and lend in others, community banks channel most of their loans to the neighborhoods where their depositors live and work, helping to keep local communities vibrant and growing.
• Community bank officers are generally accessible to their customers on-site. CEOs at megabanks are often headquartered in office suites, away from daily customer dealings.
• Community bank officers are typically deeply involved in local community affairs, while large-bank officers are likely to be detached physically and emotionally from the communities where their branches are located.
• Many community banks are willing to consider character, family history and discretionary spending in making loans. Megabanks, on the other hand, often apply impersonal qualification criteria, such as credit scoring, to all loan decisions without regard to individual circumstances.
• Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks must often convene loan-approval committees in another state.
• Because community banks are themselves small businesses, they understand the needs of small-business owners. Their core concern is lending to small businesses and farms. The core concern of the mega banks is corporate America.

Systematic Savings Bank is Springfield’s home town bank and a member FDIC. Stop by for a cup of hot coffee or cookies, made daily! We're here for you.

Keeping Balance

Nowadays people have greater access to their financial records than ever before, whether through mobile apps, online banking or text banking. Yet as I learned through internet research, many people still struggle to keep track of their checking account balance and it makes since why. It seems silly to have to record your spending in a paper checkbook or on an Excel spreadsheet when you can check your funds virtually anywhere and at anytime, but it’s important, probably more now than ever, to keep track of your accounts and their balances.

Why? Here are a few good reasons:

·         Balancing your checkbook verifies that your records match the financial institution’s records.

·         The financial institution could make mistakes. It’s important to double-check all work, even your own!

·         If you make a mistake or forget to post a transaction in your register, you may start bouncing checks and incurring fees.

·         If there is a problem and you already balance your checkbook weekly or monthly, you won't need to wade through months of transactions to figure it out.

·         Even if you use your debit card for a purchase, the first amount that is held on your account may not be the full amount. Many tips aren’t added to the purchase price until the merchant settlement process is finished, which may not occur until a few days after the pending item first appears. You may then be caught with less in your account than your online balance shows.

In order to keep your balance in check, follow these simple steps:

1.      Record your purchases and withdrawals even when using your debit card.

2.      Record deposits

3.      Calculate your balance

Need help starting the process? Try http://quicken.intuit.com/personal-finance-software/mint-online-money-management.jsp. It’s a personal finance site that helps you organize your money and stay on top of your cash flow. By using a program like Quicken and self-balancing your transactions, you can triple-check your accounts’ balance against the figures in your online or mobile financial records.