Category Archives: Money Smart

Summer of Peace, Love and Points

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Peace, Love & Points - FBBC (Nauman Digital)

Peace, Love and Points will be the theme at VCNB this summer! From now through August 31, you can earn up to 20,000 Bonus Points with a Rewards Checking and a Platinum Credit Card at VCNB. Many of our offices are having fun with this sixties theme, playing music and breaking out their tie dye!

Here’s what Peace, Love and Points means for you:

Customers who qualify for a Visa© Platinum Credit Card may receive a bonus of 10,000 UChoose Rewards® Points. With our Platinum Credit Card, customers can receive bonus points for using it to make regular purchases. Those points can be redeemed for gift cards, travel, experiences and merchandise.

Customers who open a new Rewards Checking account or switch an existing VCNB account to Rewards Checking will be eligible to receive a bonus of 5,000 points. Customers who opt for self-service and open a Rewards Checking account online will be eligible to receive a bonus of 10,000 points.

To receive a Rewards Checking bonus, the customer must activate a debit card and register it through UChooseRewards.com within sixty days of account opening to receive the bonus. New accounts must be funded with a minimum $100 deposit within 30 days of account opening.  Click here to read the full terms and conditions for this promotion.

Click here to open your Rewards Checking account online  or stop by any of our seventeen offices to apply for a Platinum Card or to open a Rewards Checking with one of our friendly, experienced staff.

Six Financial Benefits of Getting Married

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While love is its own reward, the many financial benefits available to married couples can have you both feeling especially joyful. Here’s are six ways getting married can save you a ton of money.

1. Tax-related breaks
Our legal system definitely has a soft spot for married couples, offering financial advantages including:

  • Joint tax returns: Married couples often benefit by filing jointly.
  • Estate tax exemptions: After the death of one spouse, the survivor is permitted to inherit a sizeable estate tax-free.

2. Increased borrowing power
When it’s time for a major purchase like a home, married couples have an advantage due to having two incomes in the household. Applying for a mortgage through a financial institution like VCNB as a two income couple means potentially qualifying for nicer or more expensive home than maybe you could afford with just one income.

3. Lower health insurance costs
Most employers not only shoulder part of the cost of an employee’s health coverage, they also offer options for spousal coverage as part of their benefits package. Paying the premiums and deductibles for one family policy is almost always more affordable than paying for two individual policies. That’s especially true if one spouse has been self-insured and has paid the entire cost of coverage, without any contribution from an employer.

4. Cheaper auto and life insurance
You’ll probably notice your insurance bills going down once you’ve tied the knot. Statistically, married people, particularly men, are less likely to be involved in car accidents than singles, so most auto insurers offer a marriage rate reduction. The difference in auto insurance premiums is most dramatic for couples in their 20s, and it tapers off with increasing age.

Life insurance premiums also tend to be lower after marriage because, on average, married people choose less risky lifestyles than their single counterparts. Additionally, taking advantage of multiple policy bundling discounts brings even further savings.

5. Reduced college tuition and more
One of the most surprising financial benefits of getting married is that it can sometimes knock down the cost of college tuition. As long as the couple’s parents don’t continue to claim them as dependents, marriage supplies the proof of independence many schools require as qualification for reduced in-state and even out-of-state tuition. That independent status can also affect the amount of financial aid that students can get by reducing the income and assets they have — compared with the assets of their parents — and by making them eligible for scholarships aimed at married students.

6. Enhanced Security benefits
Marriage insures that both spouses qualify for Social Security, even if one of them has never paid taxes into the Social Security System. If you should die first, your spouse will receive whichever amount is greater — the sum that you were eligible for at the time you died, or the amount that he or she is qualified for.

 

Roberta Pescow, NerdWallet

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

 

 

 

Open A New Account In Five Easy Steps!

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VCNB has made some big changes to how customers open accounts on our website. We are pleased to say that the online account opening process has been streamlined to just five easy steps!

It’s easier and quicker so you can open that new account and be on your way without a hassle.

We also have introduced a new promotion for Rewards Checking for folks who open online or in any of our seventeen branch locations.  Customers who qualify for a Platinum Visa® card in any of our locations will receive a bonus through this promotion as well.

If you aren’t familiar with Rewards Checking, this account rewards customers for using bank products including their debit card for purchases. Points can be redeemed for cash back, gift cards, travel, experience tickets, merchandise and more! To read all about Rewards Checking including the ways you can earn points, account terms and more, click here to visit our website.

Combining Rewards Checking with a VCNB Platinum Visa provides more ways to earn even more points!

Want to learn more about our current offer? Click here.

Visit us online to get started with opening your new Rewards Checking or other VCNB account in just five easy steps!!!

What to Do With Your New Raise

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Did you get a raise in 2015? According to PayScale’s annual Compensation Best Practices survey, more than 85% of large and medium-size companies gave raises that year. In 2010, only 30% of companies gave their employees a pay boost, the lowest percentage since PayScale began its survey. So raises are on the rise.

If you got one or are expecting to get one this year, what will you do with it? Here are five smart moves for that additional money.

Pay off debts
Eliminating debt and reducing the money you pay in interest should be the first step. Say your raise was $5,000 and you’re paid twice a month. You’ll be earning an additional $200 before taxes each pay period. If you earmark $300 for your credit card debt each month, you’ll pay it off faster, save on interest, improve your debt-to-credit ratio and raise your credit score.

Build your emergency fund
Now that your credit card debt is paid off, it’s time to build up your emergency fund so that when stuff happens, such as major medical expenses or unexpected job loss, you don’t have to run up your credit card bill. Financial experts say a good emergency fund should cover between three and six months of living expenses. If you normally spend $2,500 a month, you would want build up about $15,000 for a six-month emergency fund.

Because an emergency can strike at any time, having quick access to your cash is crucial. Savings accounts are a good choice because they’re low-risk investments that allow you to withdraw your money without hassle. This emergency stash should be a separate account from one you use daily so that you’re not tempted to dip into your reserves.

Community banks, such as VCNB, offer several types of savings accounts that can suit consumers’ specific financial needs.

Invest for your retirement
Concern about having enough money for retirement is the No. 1 personal finance worry for Americans, according to Gallup’s annual Economy and Personal Finance survey. Don’t be part of that crowd. If the company you work for offers a 401(k) with an employer match, be sure that you’re contributing enough to get the maximum match that’s offered. The money you contribute will reduce your current tax burden, and the match that your employer provides is essentially free additional retirement income for you. Then, consider using the remainder of your salary increase to open an Individual Retirement Account for your future. Along with assuring you a more comfortable retirement, IRAs can also offer you tax benefits.

Give to charity
If you’ve ever thought, “I’d give more to charity if I had more money,” well, now you do. You could make a donation to a charity, your alma mater or a good cause. You’ll feel good about helping others and, as long as it’s a qualified charity, you’ll be able to deduct your donation from that year’s income tax.

Live a little
Treat yourself to something fun to celebrate your raise. After all, you earned it. Dinner at a special restaurant or a relaxing day at a spa won’t eat up all your new income. Just remember that your raise isn’t a lump-sum bonus: It’s coming paycheck by paycheck, and you should invest or spend it that way.

Ellen Cannon, NerdWallet

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

 

 

 

Preparing For Unexpected Expenses

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Studies show that the majority of American households don’t have enough money in their rainy day fund to cover an unexpected expense.

It’s a fact of life. Emergencies pop up, things break and life costs more than you think it should. That’s why it’s important to be prepared. You can’t prepare for every possible emergency but stashing away a few dollars every paycheck can help.

Some expenses are truly unforeseen like a car accident, death or health problem. However, there are some that you may see coming. It’s a good idea to look around your home and consider the state of your possessions. Is your furnace starting to make a noise? Are the tires on your car showing their age? How old is that refrigerator anyway?

These things are all expensive to replace or repair but are imperative to have.  You can’t survive the winter without heat in your home. You require some way to keep your food cold or frozen so you have to act quickly when the fridge dies.

Make a list or at least a mental note of what could go wrong and add up the costs. The total will probably scare you but might provide some tangible reasons to start saving for emergencies.

Now stop and think about how much you can save each paycheck or each month. If you can stash $100 a month, you would have $1,200 saved in a year. Can’t save that much? That bonus at work or tax refund could go a long way toward padding your emergency fund and securing your budget in a crisis. Put away what you can and try to remember that this money shouldn’t be touched for anything less than an emergency.

Just a reminder: a Passbook Savings account at VCNB is a convenient place to save. If you have a checking account as well, it’s easy to transfer funds between accounts or even automate your savings with automatic transfers from your checking to savings.

If you have to take from your emergency fund, be sure to replace the money as soon as you can and continue building that safety net for future problems.

Want to read more about the reasons you need an emergency fund? Click here.   

VCNB: We’re The Bank For You

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Construction - FBBC (Nauman Digital)

Doug DeLong

Doug DeLong is a Lender at the Salt Creek Banking Center in Laurelville

If you’ve seen one of our billboards or heard our current radio spot, you know we say that if you want to redo your home or build new, we’re the bank for you. We hear from countless customers that building a home with VCNB financing is easy or that they love our Home Equity Line of Credit. So we chatted with one of our lenders to find out what he believes our customers like best about financing these types of projects with us.

Doug DeLong is a Loan Officer in our Salt Creek Banking Center in Laurelville. He has worked in this office for thirteen years and is a favorite among customers around Laurelville. He expressed excitement about the construction and home equity loan specials VCNB is currently offering. “There are many things that set our bank apart, and these products are at the top of the list,” DeLong said.

Building a home can be an intimidating process for the customer but DeLong said he works to make the financing part as easy as possible. “We pride ourselves on being available to the customer and their contractor for communication during the important building process,” he said. “Frequent communication is necessary. We inspect the home each time a contractor requests a draw from the loan. We also speak to the customer before releasing the funds to the contractor to make sure the customer is happy with the work thus far.”

One thing that sets apart VCNB from many other banks is the turnaround time for loan draws. “There are typically no cumbersome delays in the draw process, as there are at many of the larger banks. Quite often, we can have an inspection done on a home and have the draw disbursed the same day! I doubt this is ever the case at the large banking institutions,” DeLong ventured. “We make it a priority to be prompt, knowing how important it is to the customer.”

He indicated there are many advantages when it comes to the VCNB Home Equity Line of Credit as well. “No closing costs is one big plus.* The rates and easy ability to access your money are others. And, as always, the great customer service continues to set us apart.”

VCNB does have a HELOC special that makes this project even more rewarding for the customer at this time. Click here to read about the special which expires May 15, 2016.

DeLong expressed how easy it to is love his job when he feels like the customer comes first and the loan products are good for the customer. “I like seeing dreams come true for my customers. A new home is one of the biggest dreams people have in life – it’s rewarding being involved in that process. These are just a few reasons I am proud to work at VCNB, a bank that truly cares about our customers’ well-being!”

*There are no closing costs unless the amount of the loan is over $100,000. Borrowers will be assessed fees for title, insurance and survey. If the loan is closed within three years, borrower will be assessed a $500 fee.

Tax Tips to Help New Parents Save Money

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Congratulations, new mom or dad! Now take out the checkbook, because your bundle of joy comes with a bundle of new expenses. But all those day care costs and pediatrician bills can bring new tax deductions that can help you ride out the first years of parenthood without going broke.

Here are the major ways your tax situation may change now that you’re a parent.

Child tax credit

This credit is worth up to $1,000, and you can claim it if you have a dependent child living with you who is under age 17. There are income limits that start phasing out this benefit at $110,000 for couples, according to criteria on the Internal Revenue Service website.

Child care credit

If you pay for someone else to look after your child who is under age 13 while you work or look for work, you may qualify for a child care credit of $600 to $1,050 on as much as $3,000 in costs, depending on your taxable income. The care provider can’t be a spouse, and there are other qualifying rules.

Earned income tax credit

You don’t need a kid to get this credit, but when a couple has a child, they can have a much higher income before being disqualified. For example, a married couple’s 2015 taxable income can’t top $20,330 to qualify, but that limit rises to $44,651 when they add a child to the family. The limits increase for families with more children. The credit can be as much as $3,359 for a couple with one child.

Health care expenses

Paying for health care may affect your tax bill in a few ways. First, 2014 was the first year in which taxpayers had to document that they had adequate health insurance for themselves and any dependents or face a penalty. Also, if you added your newborn to your workplace health insurance plan, you may be paying higher premiums than you did before. Since the costs are deducted from your pretax pay, your taxable income may come down. If you pay significant medical expenses out of pocket, they have to exceed 10% of taxable income before they’re deductible — and even then you must itemize your deductions to claim them and cut your taxes.

Parenthood is rewarding — and it may also help you out at tax time. A tax advisor can help you learn more about how parenthood affects what you owe Uncle Sam. The savings may take the sting out of the child-induced increase in your expenses.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

How to Get Out From Under Student Loans

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If you’re a recent college graduate who took out student loans, you likely owe about $35,000. As eye-popping as that average debt figure is, you’re certainly not the only one wondering how you’ll possibly get out from under your loans. As with any difficult assignment, though, research and a well-thought-out plan will help you tackle even the most challenging of debt situations.

Making use of the following strategies will help you dig your way out of student debt. Here’s a look at where to get started.

Know what you owe

First things first: Figure out what your monthly payments should be. To do that, use one of a handful of repayment calculators. These tools let you plug in the total amount that you owe along with your loans’ interest rates and term lengths. You’ll get a better sense of how much you should be paying each month if you want to take care of your debt within a certain amount of time.

Adjust your monthly budget accordingly

Knowing how much money you’ll need to put toward eliminating your student debt each month will help you adjust your budget. That may mean making tough decisions like cutting back on nonessential expenses.

Remember: Every extra dollar you put toward your debt reduces the total amount of interest you’ll end up paying over the life of your loan, so it’s well worth the effort.

Consider automatic payments

To ensure that you make your monthly payments on time, set up automatic deductions from your checking account. The way it works is easy: Your student loan servicer simply subtracts what you owe from your account whenever your payment is due. Your lender may even offer you a discount if you choose this option, which can be much more convenient than writing and sending a check every month. Just be sure that there’s enough money in your checking account so that you aren’t hit with overdraft fees.

Switch up your repayment plan

If you’re still struggling to put money toward your student debt, consider changing your repayment plan on federal loans, which you can do whenever you want. You may, for example, opt to switch from standard repayments —which have you contributing a set amount each month over a period of about 10 years — to graduated repayment, which is when your payments start out lower and increase over time.

Extended repayments, on the other hand, give you additional time to pay back your loans, sometimes up to 25 years, if your debt is more than $30,000 and you meet certain other requirements. Other plans, aimed at borrowers whose federal student loan debt is high relative to their income and family size, are income-based. If you qualify, the payments you owe are based on how much you earn every year. Although any of these plans can ease your monthly payment, you’ll end up paying more for your loan over time than you would if you had stuck with the standard 10-year plan.

Private lenders typically have stricter policies, but it’s still worth checking to see whether there’s any way to adjust your repayment plan with them.

Final word

If you’re a teacher or a public servant, you may qualify for student loan forgiveness. Otherwise, your last resort may be opting for forbearance, which means you can stop or reduce payments for a month or two. However, because interest continues to accrue, this course of action is better avoided.

With all that said, what you definitely don’t want to do is default on your loans. When you do that, the entire unpaid balance of your loan is due immediately, and you also lose the right to defer or change your repayment plan.

Breaking down the repayment process into smaller steps will make your student debt feel less overwhelming. Although it may take several years to wipe it out completely, a carefully crafted plan will set you up for success down the road.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

Ask A Lender: What Is A HELOC?

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We introduced a new HELOC special earlier this week and it occurred to us that while bankers like to talk in abbreviations, everyone may not know about a HELOC and what it means. So we asked Cassie Stout to help us out and explain a HELOC. Cassie is the Manager of the Ross County Banking Center on E. Main Street in Chillicothe. As a Retail Banker, she is able to address all of a customer’s needs including help with loans and deposits. She has been with us since 2006 and is a popular fixture at our Ross Main Office.

Cassie Stout

Cassie Stout

Here’s what she had to say:

What is a HELOC?
HELOC stands for Home Equity Line of Credit and is a way to turn the equity in your home into cash.

Why would someone want or need a HELOC?
HELOCs are great for home improvement projects like kitchen and bath renovations, a new garage, or really any upgrade. A HELOC is also good to have if you need cash out for debt consolidation or to fund big life expenses like college or special occasions.

What are the costs related to a HELOC at VCNB?
We offer HELOCs with little to no upfront (closing) costs, and also waive the annual fee for the first year! After that, the annual fee is just $50*.

Why should someone apply for a HELOC at VCNB?
VCNB HELOCs are a great deal for many reasons. The application process is easy, plus we have great rates and low fees.

What do you wish customers knew about a HELOC that they don’t think to ask?
When you open a HELOC with us, you get great payment flexibility for a full fifteen years. That means you can pay just your interest or pay off more at any time. This is a good setup for my borrowers because they can use their HELOC for their initial purpose (like home renovations), but can then have the security of an available credit line for many years to come.

Learn about our current special at our website!

*A Home Equity Line of Credit in an amount over 100,000 will require title insurance and survey fees to be paid.

Getting Married? Combining Finances 101

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So you’re getting married. You have the church, a dress and a caterer. You know everything there is to know about your partner and you are in love. But do you know their credit score or how much they owe on student loans? This person you are about to marry may have a squeaky clean financial record or could be hiding a deep dark secret like bankruptcy or a fistful of maxed out credit cards.

Once you are married, your individual finances will also be united. Have you discussed what this really means for your relationship?  Every couple handles money matters differently so you need to consider how you will do it. It’s a good idea to have “The Talk” before you tie the knot but it’s never too late.

Rest assured, this will be the least romantic conversation of your relationship and that’s ok. Throughout your relationship you will find life is better when you have open communication about money. Here are some things to think about to get you started:

Combine or remain separate?
First consider how you will keep your money. The options are to have a joint account, individual accounts or some combination of the two. Most financial experts advise at least having a joint household account.  If you are keeping separate accounts, discuss who will pay each bill or how much you each will contribute to a joint account.

Agree on money tools
Will you use checks or only a debit card? Will you both have access to your online banking? Who will create the budget and be responsible for paying the bills? Discuss your preferences and reach a mutual agreement. Will you keep the credit cards you have or use just one joint card?

Yours, mine and ours 
Dump the “mine and yours” mentality. Ideally, assets (and liabilities) are shared and there is some balance in spending. If one spouse makes a lot and spends lavishly, it will wear on the relationship if the other partner is pinching pennies.

Create goals and a plan
What are your goals? Are you planning to buy a home in five years or have a baby soon? Maybe you want to take a vacation or pay off debt. If nothing else, you need an emergency fund. Put those goals on paper and develop a savings plan.

Be Flexible
Something will go wrong. We promise. There will be emergency purchases and your partner will make a bad decision or two. Agree to work together and make it work. Consult each other before major purchases and communicate as much as possible to avoid meltdowns.

Money is a major cause of arguments in most relationships. We wish you the best as you take this important step together and hope our advice will help you create a good financial foundation for your life together!