More on statements

Happy Thursday, readers! Today I'd like to focus on what a bank statement actually entails and why it's important for you to keep a record of the information.

An account statement or a bank statement is a summary of all financial transactions occurring over a given period of time on a deposit account, a credit card, or any other type of account offered by a financial institution. A statement will list deposits, withdrawals, checks paid, interest earned, and service charges or penalties incurred on an account.

Statements are normally sent monthly, but are sometimes sent less frequently for savings accounts. Also, as we talked about on June 7, you have the option to choose paper or electronic statements, whichever best suits your needs.  (For more information, click http://mysystematic.blogspot.com/2012/06/make-statement.html).

It’s important to keep a record of your statements, either filed with your other hard-copy documents or saved on your computer. It is recommended that you keep the quarterly statements from retirement/savings accounts until you receive your annual summary; keep the annual summaries until you retire or close the account. For credit card statements, it is recommended that you keep statements at least 45 days and keep the statements seven years if they contain document tax-related expenses.

If you have any additional questions about your monthly statement from Systematic or our e-statement option, give us a call at 417.862.5036 or stop by our 318 South Avenue location. We’d love to visit with you. Member FDIC

Also, a friendly reminder that there are only 3 weeks left of Sounds on the Square! This Friday’s free musical performance features the local band, Truett & The Traitors . Don’t miss out!! Visit and enjoy free entertainment on Park Central Square. The show starts every Friday through August 3^rd at 7 p.m. We hope to see you there :D

Loans for an education

As most of you know, I am a student at Missouri State University. At MSU our student emails have already indicated that FAFSAs have been received and our school has given us our financial aid offerings for the 2012-2013 school year. When scholarships and state and federal grants just won’t cover everything, several students turn to loans to pick up the slack. But what are the best options for the student federal loans offered? I thought this Thursday we could talk a little about subsidized vs. unsubsidized student loans. 

In order to qualify and receive government-backed financial aid like subsidized or unsubsidized loans, students must fill out the Free Application for Federal Student Aid (FAFSA) annually. The FAFSA requires you to submit information about your financial resources and, if you are a dependent, the financial resources of your family.

Stafford Subsidized Loans are federally guaranteed loans based on financial need. Interest does not accrue on the loan while you are in school at least half time. The federal government "subsidizes" (or pays) the interest. Additionally, there are maximum amounts you can receive per school year:

·         Freshman: $3,500 per year

·         Sophomore: $4,500 per year

·         Junior: $5,500 per year

·         Senior and 5th year: $5,500 per year

Stafford arUnsubsidized Loans are federally guaranteed loans that are not based on financial need. Interest does accrue from the time the loan is disbursed to the school. Additionally, there are maximum amounts you can receive per school year for dependent and independent students:

·         Freshman: $2,000 for dependent students, $6,000 for independent students

·         Sophomore: $2,000 for dependent students, $6,000 for independent students

·         Junior: $2,000 for dependent students, $7,000 for independent students

·         Senior and 5th year: $2,000 for dependent students, $7,000 for independent students

As a student, you may be offered either one of these loan types or both. You may also be offered Perkins or Plus Loans. For more information on these federal loan types, check out this link: http://www.ehow.com/about_5410853_subsidized-loans-vs-unsubsidized.html

Systematic Savings Bank does not currently offer student loans, but if you have any questions about our student checking or other forms of loans, we’d be more than happy to help you find the answers. Member FDIC.

Money Market Accounts

With this economy, we’re all concerned with saving money and a savings account is the most well-known way of doing it. On the May 31^st blog post I mentioned another way: CDs (Click here for more information: http://mysystematic.blogspot.com/2012/05/saving-money-with-cds.html ). This week, I’d like to talk about another saving venue, money market accounts.

A money market account (MMA) is a deposit account that is considered a savings account for some purposes, but is an account that acts like checking with interest. With MMAs, checks can typically be written with certain restrictions. They also usually pay higher interest (the interest is based off current rates in the money markets) and have higher minimum balance requirements (sometimes $1000-$¬2500) than either savings or checking with interest. Because MMAs bear interest AND allow for check writing, they are not legally demand deposit accounts.

Since MMAs are not considered transaction accounts, they are subject to the regulations on savings accounts: only six withdrawal transactions to third parties (e.g. the electric company for a bill payment) are permitted per month. Banks are required to discourage customers from exceeding these limits, either by imposing high fees on customers who do so, or by closing their accounts. Banks are free to impose additional restrictions (for instance: some banks limit their customers to six total transactions). ATM, teller, and bank-by-mail transactions are not counted towards the total number of transactions.

If you have any more questions about money market accounts, stop by our 318 South Avenue location or give us a call at 417.862.5036. Here at Systematic, we want to help you find the best saving option for you. Systematic Savings Bank is a Member FDIC.

Taking care of business

At Systematic, we care about local businesses. That’s why we buy from Springfield’s downtown businesses and that’s why we’ve added new products and services to meet the needs of our customers with businesses or thinking about starting a business. In addition to business checking and savings, we also offer small business checking and not for profit checking. If you have any questions about our products or services don’t hesitate to stop in or contact us! Systematic Savings Bank is a Member FDIC.

This week on Facebook, we posted a link that suggested four things that the “someday entrepreneur” might be interested in looking into for inspiration and motivation. Today I wanted to take that concept one step further and research additional websites that may continue to help you solidify your business plans. If you’re interested in any of the following, please follow the links provided.

How to brainstorm a great business name:   http://www.entrepreneur.com/article/223694

How to start your business in Missouri:   http://www.business.mo.gov/

Taxes and your business:   http://www.irs.gov/businesses/small/article/0,,id=99336,00.html

Good luck with your entrepreneurial journey! If you liked today’s blog or have any questions, please comment below. I’d love to get your feedback.

Make a statement

Here at Systematic Savings Bank, we are proud to announce that we have new product offerings for our customers. The one I’m particularly excited about is our greener banking option. With our new online banking program you can view your account balance, history, statements or you can pay bills at your convenience with a click of the mouse. Systematic Savings Bank is a Member FDIC.

In this short blog I’d like to focus on the advantages and disadvantages to paper vs. online statements. It’s important to be aware of the pros and cons so that you can make more knowledgeable banking decisions and can choose what’s really best for you and your situation.

I found these pros and cons on ehow.com for your review!

Paper Bank Statements

Pros

·         Easy to file in a filing cabinet

·         You have a tangible copy

·         Power outages have no effect on access to your files

Cons

·         Environmental impact

·         Vulnerable to tampering and identity theft through mail

·         Some banks may charge a fee to have your statements mailed to you

·         Potential for clutter

Online Bank Statements

Pros

·         Convenient and easily accessible anywhere

·         Extremely easy to save on your computer

·         You can  save multiple copies in multiple formats for extra safe-keeping

·         Lessens your carbon footprint

Cons

·         You may lose information to a computer glitch or power outage

·         If you have inadequate security protection installed on your computer, information can be stolen through phishing or hacking

If you have any questions or comments about this week's blog, don't hesitate to reply below or contact Systematic Savings Bank! Also, don't forget to stop by the square tomorrow anytime from 7 p.m. - 9 p.m. for Sounds on the Square.

Saving money with CDs

Are you looking for relatively low-risk ways to invest and save money? A certificate of deposit (CD) might work for you.

According to the FDIC, a CD is a “special type of deposit account with a bank or thrift institution that typically offers a higher rate of interest than a regular savings account.” CD’s feature federal deposit insurance up to $250,000 per insured bank, for each account ownership category. (For more information on insurance and ownership categories, read my “FDIC” blog, published March 1, 2012 by clicking this link: http://mysystematic.blogspot.com/2012/03/fdic.html)

When you buy a CD, you give a fixed sum of money for a fixed sum of time – six months, one year, or more – and in exchange, the issuing bank pays you interest, typically at regular intervals. You redeem your CD at maturity – the end of the CD term – and you receive what you originally invested, plus all accrued interest. But if you redeem your CD before it matures, you may have to pay an “early withdrawal” penalty. If the issuing bank fails during the term of the CD, the principal balance of the CD, together with interest accrued at the time of the bank’s closure, is insured by the FDIC up to the applicable deposit insurance limit.

It is important to keep in mind that the types of CDs vary. More banks are offering alternative options to the traditional fixed interest rate CD. Before you consider purchasing a CD from your bank, make sure you fully understand all of the terms and carefully read the disclosure statements.

For more information on what issues you should address and other tips that can help you assess what features make sense for you, follow the link below:

http://www.fdic.gov/deposit/deposits/certificate/index.html

Systematic Savings Bank, Member FDIC

Refinancing your home

Happy Thursday!!

Let's talk about refinancing: the word can be a bit misleading. I would like to discuss exactly what refinancing your mortgage entails and why it might benefit you.

When you refinance your home, you are taking out a new mortgage and using the proceeds to pay off your old mortgage. In actuality, you are trading your old mortgage for a new one.

I found that refinancing your mortgage can help you achieve these benefits from mortgageloan.com:

·         Take advantage of lower interest rates that will lessen your monthly mortgage payments.

·         Decrease the length of your mortgage to pay it off faster and save on interest charges.

·         Increase the length of your mortgage and spread out the costs for lower monthly charges.

·         Change the terms of your mortgage from an adjustable rate mortgage to a fixed-rate mortgage or vice versa.

·         Refinance for a higher loan amount and get quick funds for home renovations, college tuition, medical costs, or other expenses.

Refinancing your mortgage can also be costly. It’s best to weigh your options and make sure that refinancing is best for your situation. Here are a few instances where you may want to consider refinancing:

·         If you have a fixed rate mortgage and the rates have fallen to levels below the rate that you are paying.

·         If you have an A.R.M. and rates are starting to rise.

BUT:

·         If you are less than ten years into your current 30-year mortgage and rates are lower than what you are paying now. If have been paying your mortgage for longer than that, you are currently paying more principal than interest. If you get a new mortgage, you start the cycle over again and will be paying mostly interest again, which may not make sense.

The easiest way to figure out whether or not it’s worth it to refinance is to use one of the many available online refinance calculators. They will help you to determine how long it will take to recoup the expense of refinancing with the new savings. 

Try these free online refinance calculators:

·         www.bankrate.com

·         www.lendingtree.com

·         www.smartmoney.com

If you have any additional questions about refinancing your home, you may stop in or call us here at Systematic Savings Bank. We would love to talk to you about any of your banking needs. :)