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.