News for YOU! is a free, monthly newsletter provided by KS StateBank that offers tips and other information to help you make wise financial choices. Please feel free to sign up now to receive new editions of our newsletters each month, as well as other updates. You can also subscribe to our business newsletter, News for YOU! Business Edition.
May 2025
Looking to grow your savings without worrying about losing your hard-earned money? There’s a smart solution that could work for you – certificates of deposit (CDs). Offered by banks and credit unions, CDs offer some attractive benefits, including:
- Higher rates than traditional savings accounts (in most cases)
- Guaranteed returns
- The assurance of deposit protection
- A choice of terms
Interest Rates
Find our latest deposit rates at ksstate.bank/rates.
- Interest rates for CDs vary by financial institution, terms, and rate conditions, so be sure to shop around.
- Rates are usually fixed and guaranteed for the entire term, though some financial institutions offer variable-rate CDs.
- You can choose from shorter- or longer-term CDs – generally 3 months to 5 years. To determine the right term for you, think about when you need access to your money. For example, if you’re saving to buy a house in two years, you wouldn’t want to choose a 5-year CD.
- In many cases, the longer the term you choose, the higher the interest rate you will receive.
- During the term of your CD, you agree not to make withdrawals on your funds in exchange for the interest rate. If you access your money before the term ends, you’ll pay a penalty. The amount will depend on the terms of your CD and when you withdrew the funds.
- Your CD matures when you reach the term. At that point, you are given a grace period (often 10 days). You can withdraw your funds and put them in a bank account or choose another CD. You could also let the CD renew for the same term. If you choose not to do anything, your CD will be renewed for the same term and at the prevailing rate at the time.
Certificates of deposit can be a great way to build your savings and financial security. Before you open one, make sure you understand how they work and shop around for the best rates.
A Power of Attorney (POA) is a legal document that authorizes someone you appoint to act on your behalf. That appointee, known as your agent or “attorney-in-fact,” has a fiduciary duty to act in your best interest.
There are two main types of POAs. A financial POA allows your agent to handle your financial and legal affairs, such as manage investment accounts, file taxes, sign checks, and conduct real estate transactions. A health care POA, which is sometimes referred to as a ‘health care proxy,” gives your agent the authority to make medical decisions on your behalf. You may choose to have the same person serve as both your financial and medical POA or you may decide to have a different person for each role, depending on your situation.
Both are helpful tools in planning for future scenarios, particularly for older adults who may be concerned about potential cognitive challenges like dementia or other health-related issues. However, anyone age 18 and older may create a POA.
The authority you provide may be limited to specific situations or more general in its application. It can be temporary or permanent, depending on how you set up the POA. All POAs end when you, as the grantor, dies.
Four main POA categories:
- A limited POA allows your agent to handle a specific task or represent you during a specific period of time. For instance, this can be helpful if you’re out of town and need someone to handle a real estate transaction for you.
- A general POA grants as much authority to your agent as you wish. However, your agent’s authority ends if you become incapacitated.
- A durable POA grants whatever powers you wish but remains effective for as long as you live, even if you become incapacitated.
- A springing POA also lasts until your death, but it does not become effective until an event you specify occurs, such as being deemed incapacitated.
It’s important to choose your agent carefully, as there are risks involved. With a POA, your agent may be able to access your financial accounts and spend your money with the potential to liquidate your accounts.
When choosing an agent, consider the following questions:
- Do you trust the person to always act in your best interest?
- Is the person in good mental and physical health?
- Does the person try to evaluate a situation before making a decision?
- Does the person communicate well?
- Will you be comfortable sharing your financial details with this person?
- Is this person truly the best choice?
How to Get a POA
Contact an attorney to obtain a POA that meets your state’s requirements. Check your state’s bar association.
Things to Consider
It’s always a good idea to review your POA and keep it up to date.
You can always change your mind and cancel a POA. You can revoke it if your agent isn’t the right person for the role.
This article was provided by the American Bankers Association.
Memorial Day
We will be closed on Monday, May 26 in observance of Memorial Day as we honor and remember those who gave their lives serving in the United States armed forces.
April 2025
April is Financial Literacy Month and we’re taking a look at the importance of financial health. But, what does financial health mean to you? Is it paying bills on time, robust savings, retirement fund, affording a new car? Whatever financial health means to you, it starts with getting your finances in order.It’s easy to think that keeping track of your account balances is all you need to do to stay on top of your finances. But that is no longer true. Today, accounts are spread across multiple financial relationships.
Where is your money going? To figure that out, you need to include savings and checking accounts, and credit cards. You also need to look at things like your Starbucks app, Apple/Samsung Pay, Amazon Prime, Netflix, Venmo, PayPal, and your retirement account. Suddenly you realize how challenging it can be to really stay on top of your finances.
Sustainable financial health requires a holistic approach – putting all the pieces of your finances together.
Financial Health Tips To Help You On Your Way
- Create a workable budget – look at how much is coming in and how much is going out.
Look at the full picture of your income by including salary/wages, bonuses, alimony, interest etc.
Now you need to fully know your expenses. Start by adding up your childcare, credit card, payments, mortgage/rent, food, utilities, insurance, etc. Remember to include your automatic payments!
With that done, you’ll have a better understanding of your finances.
- Track your spending habits – it goes without saying that most of us need to pay attention to what we spend. Being mindful of spending habits can help keep us on track to meet goals for retirement, savings, vacations, and even that new fridge.
Beyond your essentials, what do you spend on? Eating out, movies, travel?
Understanding your spending habits will help you plan your budget. It also helps you make sound decisions the next time you’re craving take-out.
- Build an emergency fund – it’s not always easy to make savings a priority, even when we know how important it is.
Even a small amount put away each pay period can add up over time. Even better, set it up as an automatic withdrawal. An automatic withdrawal into an emergency fund means you don’t see it and don’t need to touch the money – until you need it.
- Plan for the future – with your finances organized, planning for the future comes next. What do you need for your new car, home, or retirement? How do you get there?
With your budget fully in mind, start looking at how you can make saving for your future your priority.
- Success step-by-step – You aren’t alone if you dread thinking about your finances. Trying to look at the big picture all at once can seem overwhelming, so start by taking one step at a time. Step 1. add up income; step 2. figure out expenses; step 3. create a budget; step 4. set up alerts and more to help track your spending.
So, what does financial health look like to you and how can we help you get there? Our online and mobile services are helpful tools for you get financially healthy.
Buying a home is one of the biggest and most exciting things that may happen in your life. It’s also likely to be the largest investment you will make.
Don’t worry; it’s proven to be a worthy one. Owning a home gives you the power to control your living situation and build equity, which can help secure your financial future.
But, as anyone who has been through the home-buying process knows, it’s a journey filled with many steps and important decisions. Here are some steps you can take now to make your home-buying journey easier:
- Build your savings. One of the biggest expenses of buying a home is the down payment. A typical down payment for a first-time homebuyer is 5%, though some programs let you put as little as 3% down. In addition to saving for a down payment, you’ll need to save for moving costs and your emergency fund, which will help you prepare for unplanned home repairs and other expenses.
- Manage your credit score. Your credit score will impact your ability to get a mortgage and the interest rate, so make sure you tend to it before you apply for a mortgage. Start by obtaining a free credit report from each of the three credit bureaus, Equifax, Experian, and TransUnion. To build and maintain a good score, pay your bills on time and pay down debt balances. Also, avoid applying for credit cards and loans during the mortgage process, which could lower your credit score.
- Set a budget for a home. Before home shopping, determine what you can afford. The amount you qualify for will depend on your income, expenses, and credit. When you know how much house you can afford, look at homes within that range. Recognize that if you spend more than your budget, you could end up being “house poor” with little money left in your budget for the things you want to do.
- Avoid a job change while applying for a mortgage. During the approval process, lenders will look at your employment history. Changing jobs during the mortgage process could impact your ability to qualify, so try to wait until after you close on the home.
- Understand the types of mortgages available. There are many options for first-time home buyers depending on your income, where you live, and other factors that can make qualifying for and affording a home easier. A good lender can help you choose the right mortgage for you.
- Find the right real estate professional. An experienced real estate professional can make the mortgage process easier and give you a valuable advantage when negotiating for a home. Ask for recommendations from your friends, neighbors, and work colleagues.
- Gather up your loan docs. When applying for a mortgage, you must provide proof of income and employment (1099s, W2s), bank and retirement account statements, and information on your debts. Gathering up your financial documents before you apply will make the mortgage process easier
- Get pre-qualified from a lender. Before you start shopping for homes, talk to a lender about getting a mortgage pre-qualification letter, which can help you gain a powerful negotiating advantage. To pre-qualify you, a lender will verify your income, assets, debts, and credit score.
Contact Penny Alonso or visit our Personal Lending Solutions page to learn more and apply.
Penny Alonso
Vice President, Residential Lending
785-564-6225 | 800-588-6805
palonso@ksstate.bank
NMLS ID 446653
785-564-6225 | 800-588-6805
palonso@ksstate.bank
NMLS ID 446653
March 2025
The spring season of growth is just around the corner. It’s the ideal time to make home improvements, shed extra debt, and take other steps to reach your goals and spruce up your financial life. Spring is also the season for a popular financial tool to help you accomplish that: a home equity line of credit or HELOC.
But how much do you really know about HELOCs?
You may know that a home equity line of credit lets you tap into the equity you’ve accumulated in your home to borrow. But there are a lot of misconceptions about HELOCs. Let’s look at five common ones to ensure you understand how they work before you borrow:
Myth 1: Home equity lines of credit are the same as home equity loans.
Fact: Though both let you borrow from the equity in your home, they are different. Unlike a home equity loan that lets you access the money you borrow in a lump sum, a home equity line is a revolving line of credit that allows you to borrow and repay funds over and again. Generally, HELOCs offer a variable rate of interest while home equity loan rates are fixed. (Please note that KS StateBank does not offer home equity loans.)
Myth 2: A home equity line is essentially a second mortgage.
Fact: That’s true. A home equity line is a second mortgage secured by your home. So, make sure you borrow for good reasons and pay on time, every time.
Myth 3: You can only use a HELOC to make home improvements.
Fact: Not true. Though the word home is in the name, you can use home equity for a variety of other purposes, such as college expenses, debt consolidation, a wedding, or vehicle purchase. How you use a HELOC is up to you.
Myth 4: You pay interest on the amount of your line.
Fact: That’s false, too. HELOCs work very similar to credit cards. You only pay interest on the amount you use not your available credit limit. So, if you have a $50,000 line and only borrow $10,000, you’ll only pay interest on the $10,000.
Myth 5: Interest on HELOCs is always tax deductible.
Fact: That’s no longer true. According to the IRS, interest on HELOCs is deductible only if the borrowed funds are used to buy, build, or substantially improve the home that secures the HELOC. So, before you borrow, consult your tax advisor.
Fact: This is just a small sample of what you should know before you apply for a HELOC. To learn more about how HELOCs work to determine if one is right for you, talk to us today.
Who doesn't want to get the best deal for their dollar? There's no shortage of sale ads from merchants who want your business: they're using preferred customer specials, early bird sales, midnight madness events, coupon savings days, and pre- AND post-holiday sales. Just how do you decide if their deals are real?
The Federal Trade Commission, the nation's consumer protection agency, has some tips to help you get the most for your money.
- Shop around. A "sale" price isn't always the "best" price. Some merchants may offer a sale price on an item for a limited time; others may discount the price on the same item every day. Having an item's manufacturer, model number, and other identifying information can help you get the best price for the item you want.
- Read sale ads carefully. Some may say "quantities limited," "no rain checks," or "not available at all stores." Before you step out the door, call ahead to make sure the merchant has the item in stock. If you're shopping for a popular or hard-to-find item, ask the merchant if he'd be willing to hold the item until you can get to the store.
- Take time and travel costs into consideration. If an item is on sale, but it's way across town, how much are you really saving once you factor in your time, your transportation, and parking?
- Look for price-matching policies. Some merchants will match, or even beat, a competitor's prices—at least for a limited time. Read the merchant's pricing policy. It may not apply to all items.
- Go online. Check out websites that compare prices for items offered online. Some sites also may compare prices offered at stores in your area. If you decide to buy online, keep shipping costs and delivery time in mind.
- Calculate bargain offers that are based on purchases of additional merchandise. For example, "buy one, get one free," "free gift with purchase," or "free shipping with minimum purchase" may sound enticing. If you don't really want nor need the item, it's not a deal.
- Ask about sale adjustments. If you buy an item at regular price and it goes on sale the next week, can you get a credit or refund for the discounted amount? What documentation will you need?
- Ask about refund and return policies for sale items. Merchants often have different refund and return policies for sale items, especially clearance merchandise.
February 2025
Ideas for managing your refund safely and securely
Here are some ideas to help your money arrive quickly and safely, once you have submitted your federal taxes and expect a refund coming to you. Consider these safe ways to receive and manage your refund.
Find out if you may be eligible for free tax-preparation assistance through the IRS
The Internal Revenue Service (IRS) Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals. By assisting taxpayers to prepare their taxes, VITA/TCE providers assist taxpayers with identifying all the credits for which they are eligible, such as the Earned Income Tax Credit, which can lead to a large refund.
Choose a reputable tax preparer, if getting assistance with filing
If you decide to get assistance with preparing your tax return and may not be eligible for the VITA or TCE programs, be sure to find a reputable tax preparer. While most tax preparers are recognized professionals who can be very helpful, it is important to understand a professional’s fees upfront and avoid scammers. Be wary of those promising large refunds or special inside knowledge of little-known tax credits and rebates, or those contacting you directly at your home or over the phone. Scammers make money collecting fees or stealing your personal information for later use. If you aren’t sure a tax preparer is legitimate, ask for a preparer’s tax identification number, PTIN, which all legitimate preparers must have. Also, ask the preparer for references. Learn more about choosing a tax professional and preparing to file your taxes on the IRS website.
The tax refund process and benefits of a bank account
The fastest way to get your tax refund is to have the IRS electronically deposit the refund into your bank account. This service is free, and it allows you to deposit your refund into as many as three separate accounts. While you can receive your refund in the form of a paper check, there are several advantages to direct deposit. Not only is it faster, direct deposit is also more secure. Refund checks sent through the mail can be lost, stolen, or returned to the IRS, if undeliverable. If you don’t already have a bank account, this might be the perfect time to open one. The FDIC provides deposit insurance to protect your money in the event of a bank failure. Your deposits are automatically insured to at least $250,000 at each FDIC-insured bank.
An easy way to have confidence that your money is safe is to deposit it in a bank account insured by the Federal Deposit Insurance Corporation (FDIC). Getting banked can help you track spending, have proof of payment, and pay bills online or using a mobile app. If you hold a deposit account with an FDIC-insured bank, you are insured for at least $250,000. The FDIC provides information to help you determine whether you are dealing with an FDIC-insured bank and how to avoid fake banks and apps.
Prepaid cards
Another option is to have the IRS deposit your refund onto a prepaid card. If you use a prepaid card, read the fine print and make sure you know how to deposit money onto the card and any fees involved. Cards differ in the types of deposits allowed, and also the process for receiving government deposits, and the fees charged for certain transactions. If you set up a new prepaid card account for your refund, you may be required to provide information to validate your identity, such as your Social Security number and date of birth. The Consumer Financial Protection Bureau (CFPB) offers resources to help consumers understand and choose prepaid cards, and the FDIC provides information that may be helpful in understanding whether the funds on your prepaid card would be FDIC-insured.
If you choose this option, be careful with your prepaid card and personal identification number (PIN). If they are lost or stolen, you could be subject to replacement card fees or risks associated with unauthorized charges.
Tracking your refund status
Whichever refund delivery method you choose, you can track the status of your federal tax return from the time the IRS received it by IRS Where's My Refund.
Protect your money from tax scams
Be sure your refund is protected. If your personally identifiable information, such as your name, address, and Social Security number, is stolen, scammers can use your information to open credit card and loan accounts or file a fraudulent tax return in your name. This information also allows a thief to claim your refund. If you suspect that your information was stolen, contact the IRS by calling 800-908-4490 and visit the IRS website for identity theft resources.
Identity thieves have also been known to pose as IRS agents, providing fake names and IRS badge numbers. Some even create fake phone numbers that appear on your caller ID as coming from the IRS. These thieves often threaten people with audits, deportation, and other legal action or promise checks for unclaimed funds. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. Before acting on any phone call or email purportedly from the IRS, call the agency at 800-829-1040 or check its website for verification resources. IRS representatives can verify whether the IRS is, in fact, trying to get in touch with you. You can also report unsolicited emails by forwarding them to phishing@IRS.gov and following other instructions on the IRS website.
If you believe the contact was part of a scam, also report it to the Treasury Inspector General for Tax Administration (Tax IG) by calling 800-366-4484 or reporting the scam on the Tax IG website.
What to do with your refund
Tax refunds can provide a great opportunity to start a new savings account, contribute to your emergency fund, or reduce outstanding debt. Because you can split your refund, you are able to use each of these options.
Consider using your refund to start or supplement an emergency savings fund. Having emergency savings provides peace of mind when an unexpected need arises, such as a major car or home repair. The amount to set aside for your emergency fund will depend on factors such as your income, expenses, and the number of people in your household. A general recommendation is to try to keep three to six months’ worth of expenses in your emergency savings fund.
If you are carrying a credit card balance, think about using your tax refund to pay it down or even pay it off. To get the most from your money, it may make sense to pay off a credit card with a high interest rate, with interest compounding month after month. Going this route can help improve your credit history as you reduce your debt.
Making extra payments on your mortgage is another way to use your refund, saving you money over the long term. If much of your mortgage payment goes toward paying interest, using your tax refund to make an extra payment or two against the principal can go a long way to reducing the debt and overall cost of the loan.
If you are getting a tax refund this year, remember to take steps to keep your refund safe, know the refund options available to you, and consider different ways to make your money work harder for you.
This article was provided by the FDIC Consumer News.
Credit has become a part of our everyday lives. When used properly, it’s a powerful tool that can help you realize your goals like earning a degree or buying a home. But, when you use credit to purchase things you can’t afford, it can weigh down your budget and lead to sleeplessness, stress, and health issues.
If you feel burdened by credit card or other debt – or want to avoid debt in the future – there are some smart steps you can take:
- Know who and what you owe. The first rule of managing debt is knowing the type and amount of debt you have. For example, you may have a mortgage, student loans, and car payments. Record your outstanding balances, the interest rate charged, your monthly payments, and the remaining term on your loans. If you have credit card debt, know the balances you owe and the interest rates.
- Create a monthly budget. A monthly budget is critical to managing debt and achieving financial success. To create your budget, use online banking, your checking account statement, or a budgeting software/app to view your monthly expenses and income. Once you know your expenses, categorize them by “needs” and “wants.” Needs include your mortgage, rent, or utilities while wants include discretionary purchases, such as subscription services or vacations. Go through your wants and determine things you can do without and use the money you’ve freed up to pay down your debt.
- Set your debt payment strategy. One such approach involves paying down your higher-interest debt first. Another option is to pay off the smallest debt you have first. Whichever option you choose, stick to your debt payment plan.
- Put your credit cards on ice. As you work on paying down your debt, be careful not to run up new debt. If you use your credit card to pay for everyday expenses, pay off the amounts you charge. Remember the simple rule: Don’t charge anything you can’t afford to pay for in cash.
- Make your payments on time. Late payments can cost you – either in higher interest rates, costly fees, or both. So, make payments on time, every time.
- Consolidate higher-interest debt. Another option for paying off your debt is to consolidate higher-interest debt with a balance transfer offer. Just be careful not to run up debt on credit cards you pay off.
Getting your debt under control may seem difficult, but if you stay committed to your plan, you can do it!
Presidents Day
All KS StateBank locations will be closed on Monday, February 17 in observance of Presidents Day. We will reopen during regular hours on Tuesday, February 18.
The new year is a great time to take a fresh perspective on your life and your goals. It’s why people often set financial resolutions, such as spending less money, saving more, or reducing debt. There’s actually a pretty easy way to help you accomplish all those goals: improving your credit score.
Your credit score can have a big impact on your life. It can help you qualify for the loan you need to reach your goals, such as buying a home or a car. It can also help you get the best interest rate, saving you a lot of money.
If you have a strong credit score, you are at an advantage, however, if you have a poor credit score or haven’t yet established one, you’ll want to work on raising it.
Here are five steps that can help you:
- Pay your bills on time. Every time. The biggest factor that impacts your credit score is your history of making on-time payments. That’s why you should always pay your bills by the due date. Automating your bill payments and setting bill payment reminders can ensure you don’t miss a payment.
- Reduce balances on credit cards and other revolving debt. If you have revolving lines of credit like credit cards or home equity lines, work on reducing your outstanding balances. That’s because revolving debt impacts your credit utilization, which is the percentage of revolving debt you use. Paying down your credit card balances will lower your credit utilization, which can increase your credit score.
- Keep older accounts. If you have an older credit card you’ve paid off, you may be tempted to close it, but doing so can actually lower your credit score. To keep the lender from closing your account, use the card now and again to make and pay off small purchases.
- Avoid applying for new credit. Sometimes it’s tempting to apply for a new credit card, especially when it comes with a perk like 20% off your first purchase or 50,000 airline miles. But each time you apply for a credit card, the lender will conduct a hard inquiry on your credit, which can lower your credit score. What’s more, those hard inquiries stay on your credit report for up to two years.
- Regularly check your credit report for errors. Mistakes and fraud can happen, which can hurt your credit score. That’s why it’s essential to frequently check your credit report for errors. You can obtain a free credit report every 12 months from each of the three credit bureaus at AnnualCreditReport.com. If you spot errors, contact the credit bureaus to dispute them.
Questions to ask yourself now
Saving for emergencies, retirement, or other expenses can seem difficult, but there are some strategies that can make it easier. Saving can start with identifying your savings goals, finding unnecessary expenses to cut, and deciding where to put your savings. Start by asking yourself some of these questions.
Do I have savings goals?
Knowing why and how much you want to save can help you stick to a plan. For example, if you have a young child, ask yourself if you plan to help pay for college. Research indicates that children who have a college savings fund are more likely to go to college than those who don’t. Start by looking at “529 plans” sponsored by your state (typically with cost and tax benefits for residents) and compare them to other education-related savings options, such as a Roth IRA. Learn more about savings for college-related expenses in the Consumer News article, Thinking About Upcoming College Expenses?
Perhaps you have shorter-term goals, like to plan a vacation or wedding, or to make a large purchase for your home. Establishing the amount and timeframe within which you want to save can help you break down a larger amount into more manageable amounts to save over time. Learn more about how Savings Are Great for Short-Term Goals Too.
How can I spend less?
Review how much you spent in the last few months and consider ways to cut back. Start by reviewing recurring expenses, even small ones, and determine what you might be able to cut out, downgrade, or find a better deal on elsewhere. Visit How Money Smart Are You to create a monthly spending and saving plan. Determine what you can change to help you reach your financial goals. For example, try to pay less in interest. If you have multiple loans or credit cards, pay off the ones with the highest interest rates first. Regularly reviewing your credit report and correcting errors can result in considerable savings on loans and insurance policies.
Our free online financial management tool, My Money, can help you set goals, create a budget, organize your personal finances, and track your savings. Look for My Money in your KS StateBank Online Banking account.
Am I saving money on a regular basis? Automatic transfers into savings on a set schedule can help you save money before you spend it. You can arrange with your bank to automatically transfer a certain amount from your checking account into a savings or investment account on a regular schedule. Automatic savings programs help to build an emergency fund or save for the future. For example, if you are paid every other week and put $20 into your savings account each pay period, that adds up to $520, plus interest, to your savings each year. Read more about how Starting Small Can Lead to Big Savings.
Do I have an emergency savings fund?
Financial experts generally recommend that you have at least six months of living expenses in a federally insured product, such as a savings account or a certificate of deposit (CD). Just note that CDs generally have a penalty for early withdrawal, so be sure to check with your bank on fees. The idea is to help you withstand a major reduction in income, such as from a job loss, or to pay for a major, unexpected home or car repair. To build your emergency savings fund, consider a combination of regular, automated deposits and any “windfalls” you receive, perhaps from a tax refund or a bonus at work.
Tax refunds provide a great opportunity to start a new savings account, contribute to your emergency fund, or reduce outstanding debt. The IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free basic tax return preparation to qualified individuals. By assisting taxpayers to prepare their taxes, VITA/TCE providers ensure taxpayers are receiving all the credits for which they are eligible, such as the Earned Income Tax Credit, and that can lead to a large refund. The safest and fastest way to get your tax refund is to have it electronically deposited into your bank account through the IRS Direct Deposit Program.
Where should I put my savings and how much risk am I willing to take?
A traditional FDIC-insured savings account is a great place to put money aside for savings goals, as it allows you to withdraw funds easily and earn some interest. These accounts do not come with checks and the bank may limit the number of withdrawals you can make, which helps you avoid the temptation to spend your savings before you’re ready. You can even set up automatic transfers from your checking account to keep your savings separate. This separation helps to avoid spending your money frivolously.
Investments such as stocks, bonds and mutual funds can produce higher returns than bank deposits over many years, but the value of those investments are subject to fluctuations in the market. (Remember, non-deposit investments are not insured by the FDIC.) In general, the longer you plan to keep money invested and the greater your tolerance for risk, the more likely these investments can help you reach your targets. Visit Understand What It Means to Invest to learn more.
Am I saving enough for retirement?
For many, the answer is “no” even when they think it is “yes.” Options to save include workplace retirement plans, and Individual Retirement Accounts (IRAs) offered by many banks and investment companies. As with other savings goals, it is important to understand why you are saving and how much you need to save. Financial needs change through all stages of our lives. Start by determining what your expected retirement income will be and compare it to the expenses and debt you think you will have in retirement. Read Saving for Retirement for more tips to consider.
Visit our Deposit Rates page to view the latest checking, savings, CD, and IRA rates.
This article was provided by the FDIC Consumer News.
Martin Luther King, Jr. Day
Our offices will be closed on Monday, January 20 in honor of Martin Luther King, Jr. Day. We will reopen during regular hours on Tuesday, January 21
KS StateBank | NMLS ID 410602
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