December 2024
10 Year-End Financial To-Dos
It’s hard to believe that the end of the year is near. And though holiday plans and preparation seem to get a lot of attention during this period, there’s something else you should pay attention to – your finances.
Yes, there are some important steps you can take now to help you get off to a great financial start in the new year. Let’s take a look:
- Review your spending. Do you know where you’re spending your money? You can find out pretty easily by reviewing your credit card and bank activity and categorizing your spending, such as “household expenses” or “entertainment.” Reviewing and identifying your spending can make tax time, which is right around the corner, easier.
- Check your credit. It’s important to regularly check your credit since it can help you qualify for loans and detect fraud. Under federal law, you’re entitled to a free copy of your credit report from each of three credit bureaus (Equifax, Experian, and TransUnion) per year. To request yours, visit annualcreditreport.com.
- Review your debt. Want to shed high-interest debt in the new year? Start by looking at your outstanding credit card balances and interest rates. When you know what you owe and the interest you are being charged, you can build a plan to pay down your debt.
- Assess your savings. Having savings is essential for meeting life’s planned and unplanned expenses. Take stock of your savings to ensure you have money set aside for an emergency fund or for planned goals, like buying a home.
- Maximize your retirement savings. With your 401(k) or an IRA, you may be able to take advantage of tax-deductible contributions, which can help lower your taxable income and help you save money.
- Make charitable contributions. The end of the year is an ideal time to give back. If you’re considering helping a non-profit organization, make your donation by the end of the year to take advantage of potential tax benefits.
- Review your financial plan. Now is also a great time to meet with your financial provider to review your financial plan and portfolio and address any changing life circumstances, such as the birth of a child or your retirement plans.
- Update your beneficiaries. While looking at your accounts and portfolio, review your beneficiaries to ensure they are up to date.
- Take your Required Minimum Distribution (RMD). If you’re required to take an RMD, make sure you do so by the end of the year to avoid costly penalties.
- Set financial goals for the New Year. The end of the year is also an opportune time to think about what you’d like to accomplish with your finances over the next year. For example, you may want to build emergency savings. Write down how much you would like to save over the next year and set up recurring transfers from checking to automate your savings to make it happen.
In short, giving your finances a little love and attention by year-end can go a long way in helping you get off to a prosperous New Year.
What You Should Know About Gift Cards
So you can enjoy giving and receiving
Gift cards can be a convenient present for the holidays and special occasions. While they seem simple, it is important that both the giver and the recipient read the details for each card to avoid any misunderstandings, and there might be additional policies set by the merchant or bank issuing the card.
Federal Law Offers Protections
The Credit Card Accountability Responsibility and Disclosure (Credit CARD) Act provides several protections for consumers who purchase certain types of gift cards, including store and restaurant (also known as merchant) gift cards. These cards can only be redeemed at the stores and restaurants that sell them. Bank gift cards, which carry the logo of a payment card network (e.g., Visa, MasterCard), are also subject to Credit CARD Act protections and can be used wherever the brand is accepted.
Under the law, a gift card cannot expire until at least five years from the date it was activated. The law also places general limitations on fees. For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. In addition, some states have separate laws that provide added protection in certain circumstances.
Beware of Scams
Scammers often use gift cards as a way to defraud people of their money because they’re just like cash – any misuse is hard to trace. Unlike credit cards, there typically isn’t any recourse for consumers when a gift card is stolen or used without authorization, so it is very hard to reverse the purchases or get a refund in these situations.
One of the more common gift card scams involves thieves posing as government agents (often the IRS) or a utility company. Another common scam is someone posing as an attorney for a family member and they claim they are in trouble with the law and need assistance. They contact you by phone or email and ask you to purchase gift cards in specific amounts to pay them. These are all red flags to a scam, and once you purchase the gift cards, the scammers will tell you to provide them with the code numbers and PINs that are usually located on the back of cards so that the scammer can redeem them.
Remember, no business or government agency will ask you to make payments with gift cards, so if you are contacted in this manner, it is most likely scam. It’s also a good rule of thumb to never make a payment over the phone or by wiring money unless you can confirm that the request for payment is legitimate.
Also, be on the lookout for gift card scams if you are selling items. Someone may contact you to purchase the item you are selling and tell you they will send a check for more than the purchase price and ask you to give them the difference in the form of a gift card, but once you receive the check, you’ll find out it is fake.
For more information on identifying and avoiding scams, visit:
If you believe you’ve been the victim of a gift card scam, report the situation to your local police department. You may also want to notify the Federal Trade Commission (FTC), which tracks scams and frauds. You can submit complaints about scams to the FTC by visiting ReportFraud.ftc.gov.
In addition, you should immediately report the scam to the merchant or company that issued the card and ask if they can refund your money. Most issuers have toll-free telephone numbers available online, so you can call to report a lost or stolen card. You might get back the money left on the card or a portion of it, and sometimes there is a fee when they provide a refund, but still worth reporting. You might need to show the receipt and the ID number on the card, so be sure to keep record of that information.
Tips When Buying Gift Cards
- Avoid buying gift cards from unknown sites. The cards may be counterfeit or stolen, so be sure to buy gift cards from sources you know and trust.
- If you are buying a card from a retailer, check it before purchasing. Make sure that the codes on the back of the card haven’t been scratched off to show the PIN number.
- Be sure to read the gift card’s fine print. Know the terms and conditions. Is there an expiration date? Are there fees to use the card? Are there fees if the card is not used for a certain period of time?
- If possible, register your gift card. This may help protect you in case the card is lost or stolen.
Now that you are better informed, be sure to share this information with the receiver of your gift, so they can be prepared too!
This article was provided by the FDIC Consumer News.
Holiday Schedule
All KS StateBank locations will close at noon on Tuesday, December 24 for Christmas. We’ll reopen at our regular times on Thursday, December 26. We will be open during regular hours for New Year’s Eve, and closed New Year’s Day.
We wish you all the best this holiday season and in the new year. Thank you for choosing KS StateBank!
November 2024
Do You Practice Safe Checks?
It should come as easily as airline safety, so buckle up for this one. Despite the fact that check use has declined by 25%, reports of check fraud have soared. In fact, they’ve nearly doubled since 2021. Criminals are becoming more sophisticated and finding new ways to steal your financial information to gain access to, and fly off with your money. KS StateBank is committed to helping our customers use checks safely.
Don’t give criminals the runway: Understanding the tactics they use can be your first line of defense.
Criminals are known to raid mailboxes and take off with checks so they can alter them and steal your money. One way to prevent this from happening is by not leaving your mail in your mailbox overnight or for long periods of time. If you’re heading out of town, you can pause your mail delivery for peace of mind. If you’re sending a check in the mail, don’t drop it in your mailbox. Instead, mail it from a USPS location to ensure it lands safely.
If criminals get ahold of your check, they could use what’s known as check washing. Chemicals are used to “wash” checks, erasing and rewriting details to siphon funds into their own accounts. Lastly, if a criminal gets ahold of your account and routing number, they can stow that information away, and easily steal your money by creating counterfeit checks using modern printers and software.
Remember, every time you write a check, you expose your personal information, such as your name, contact information and bank account number. If digital banking options aren’t an option, keep these tips in mind to practice check safety:
- Use Permanent Gel Pens
Just like wearing a seatbelt when you fly, use permanent ink when you write a check to protect yourself.
- Avoid Blank Spaces
Make sure you fill out every blank space on a check so criminals can't fill them in instead.
- Withhold Personal Information
The person in the middle seat doesn't need to know your whole life story, just like you don't need to add personal info to your checks.
- Review Accounts
Monitor your account activity online or in the KS StateBank mobile app as attentively as you await a safe arrival message from a loved one. Regular reviews ensure you quickly notice anything out of the ordinary.
- Check Your Checks
Regularly review your paid checks online and in our app. Ensure the endorsement is correct and reflects the intended payee and amount to guard against fraud.
- Use Digital Payment Options
Consider switching to KS StateBank payment app or online bill pay for fast and secure payments.
- Follow Up
Just as you confirm your flight details, make sure to follow up with payees to confirm they've received and deposited your check.
For more airline-themed tips, resources and videos on how to #PracticeSafeChecks, visit
PracticeSafeChecks.com from the American Bankers Association.
Celebrate Small Businesses This Holiday Season and All Year Long
It's the annual season of giving and thanks. It's also time to celebrate another annual tradition – Small Business Saturday. Created by American Express® during the recession of 2010 and held every Saturday following Thanksgiving, Small Business Saturday encourages consumers to support local businesses during the holiday season.
Even though Small Business Saturday happens once a year, you can support small businesses all year long. Here's how:
- Shop local. Drop into local businesses during Small Business Saturday and throughout the year. If you're not comfortable shopping in person, order online or by phone.
- Purchase gift cards. In addition to being great presents, gift cards provide the perfect opportunity to support a variety of local businesses – from restaurants to hair salons.
- Dine local. Whether you go out to brunch with your family, plan a date night, or grab coffee with a friend, support your locally owned restaurants. Many offer home delivery or curbside pickup for added convenience.
- Follow your favorite businesses on social media. Give a shoutout to your favorite local business to let your friends and family know what they have to offer.
- Write an online review. Word of mouth can be a great way to help businesses gain traction. If you've had a great experience with a local business, write a killer review.
Small businesses are so vital to the health and wellbeing of our communities. Give them the gift of your business this holiday season and throughout the year.
November Holidays
Veterans Day: We will be closed for Veterans Day on Monday, November 11 as we honor the men and women who have served in the U.S. armed forces. Thank you to our veterans for your bravery and sacrifice.
Thanksgiving: We will also be closed on Thursday, November 28 for Thanksgiving. Our offices will return to normal hours on Friday, November 29. We’re grateful for all of our clients and hope you have a wonderful Thanksgiving!
October 2024
Can You Spot a Phishing Scam?
Every day, thousands of people fall victim to fraudulent emails, texts and calls from scammers pretending to be their bank. And in this time of expanded use of online and mobile banking, the problem is only growing worse. In fact, the Federal Trade Commission’s report on fraud estimates that American consumers lost a staggering $10 billion to phishing scams and other fraud in 2023—an increase of 13.6% over 2022.Online scams aren’t so scary when you know what to look for. And at KS StateBank we’re committed to helping you spot them as an extra layer of protection for your account. We’ve joined with the American Bankers Association and banks across the country in a nationwide effort to fight phishing—one scam at a time.
We want every bank client to become a pro at spotting a phishing scam—and stop bank impostors in their tracks. It starts with these four words: Banks Never Ask That. Because when you know something sounds suspicious, you’ll be less likely to be fooled.
These four phishing scams are full of red flags:
- Text Message: If you receive a text message from someone claiming to be your bank asking you to sign in, or offer up your personal information, it’s a scam. Banks Never Ask That.
- Email: Watch out for emails that ask you to click a suspicious link or provide personal information. The sender may claim to be someone from your bank, but it’s a scam. Banks Never Ask That.
- Phone Call: Would your bank ever call you to verify your account number? No! Banks Never Ask That. If you’re ever in doubt that the caller is legitimate, just hang up and call the bank directly at a number you trust.
- Payment Apps: Beware of text messages from someone claiming to be your bank saying your account has been hacked. The scammer may ask you to send money to a new account they’ve created for you, but that’s a scam! Banks Never Ask That.
You’ve probably seen some of these scams before. But that doesn’t stop a scammer from trying. For tips, videos and an interactive quiz to help you keep phishing criminals at bay, visit BanksNeverAskThat.com from the American Bankers Association. And be sure to share the webpage with your friends and family.
Holiday Budget-Busters to Avoid
The holiday season is a special time of year to give to others. There is, however, one precious gift you can give to yourself: the gift of financial security and peace of mind.
Sure, with all the sales and constant emails from your favorite retailers, it’s hard not to get caught up in the joy of the season and overspend. Here are eight budget busters to help you prevent that from happening to you:
- Failing to set a budget. Weeks before the holidays, create your holiday gift-giving list. Then, look at your finances and determine how much you can afford for each person on your list. Once you set a budget, keep track of what you’ve bought and where your money stands.
- Buying unplanned gifts. Surprises are a part of life, so you may be surprised if someone presents you with a gift you didn’t expect, or if you forget someone on your list. To make it easier on yourself and more affordable for your budget, buy a few, reasonably priced universal gifts just in case, such as candles or picture frames.
- Shopping at the 11th hour. Holiday shopping can be stressful, especially if you wait until the last minute when inventory is picked over. You could end up paying more just to get a suitable gift. Do yourself – and your wallet – a big favor by carving out time to shop well before the holidays.
- Spending money on food. The holidays are a super busy time, which means you may break from your normal routine, like meal prep and cooking. That can lead to dining out or ordering takeout, which can be a budget buster. Try to plan your meals and avoid the food court at the mall.
- Overspending on entertainment. To celebrate the holidays, you may want to host an open house with friends and family or attend a special concert or event. That could end up costing you more than you can afford. You can still celebrate the season and get together in less expensive ways. Consider hosting a potluck dinner where everyone brings a holiday dish or arranging for neighborhood caroling.
- Decking the halls. It’s fun to decorate your home for the holidays, but it can be expensive. Try to limit spending on decorations by making them, visiting thrift stores, or recycling what you already have.
- Buying gifts for yourself. When shopping at the mall or online, you may see gifts you want to buy – for yourself. It’s tempting to purchase new clothes or the latest gadget for yourself but doing so can really strain your budget.
- Racking up debt. There’s an old saying about using credit cards. If you don’t have the money to buy something with cash, don’t use your credit card. Because let’s face it, nothing brings post-holiday blues more than carrying high-interest credit card debt.
Remember the best gift you can give yourself is financial security and peace of mind.
Columbus Day
All KS StateBank locations will be closed on Monday, October 14 in observance of Columbus Day. We will reopen at our regular times on Tuesday, October 15.
September 2024
5 Myths and Facts About Student Loans
With the high cost of college today, there’s a pretty good chance you’ll need to take out student loans to help you meet the cost of education. There’s also a good chance that those college loans may be with you long after school ends. That’s why it’s so important to understand how student loans work.
Here are some myths and facts to help you:
1. Myth: Your loans will be forgiven, so you don’t have to worry about paying them back.
Fact: Though there are programs that allow for loan forgiveness for public service positions and have been government efforts to cancel student loan debt, there’s no guarantee that yours will be forgiven. So, if you’re taking out a loan, be prepared to pay it back. Banking on forgiveness won’t help you.
2. Myth: Refinancing federal student loans to a private loan is a smart choice.
Fact: Sure, refinancing federal student loan debt with a private loan* may help you save money in interest (depending on the interest rate). There are, however, some drawbacks to refinancing federal student loans, including the loss of federal benefits like income-driven repayment and loan forgiveness if you work in public service. So, before you take any steps to refinance, understand what you would be giving up.
3. Myth: Student loan debt won’t affect your credit score.
Fact: Student loans are reported to credit bureaus. That means if you’re late with your payments or you ignore them, your credit will suffer, and you’ll have trouble getting the loans you may need later in life. Late payments will cost you more, too, since unpaid interest gets added to your loan balance.
4. Myth: All private loans are the same.
Fact: The rates, fees, and features of private loans* can vary significantly. So, before you sign on the dotted line, shop multiple lenders and always read the fine print. Also, note that some private loans offer variable interest rates while others offer fixed interest rates.
5. Myth: You can borrow as much as you need for college because you’ll earn the money back after graduation.
Fact: Before you borrow, think about your field of study and your earning potential. For example, careers in engineering and accounting have the highest earning potential while careers in public and human services pay less. If your earning potential is lower and you borrow a lot, it may take you a lot longer to pay back your loan. That could keep you from reaching other goals in life.
In short, doing your homework to understand your student options can help you make good financial choices and build the bright future you went to college to achieve.
*KS StateBank does not offer private student loans.
Automate Your Financial Life
Get more out of your money in less time
Doing more in less time; you know that's how technology can help you work smarter. But do you realize you can use it to bank smarter, too — and get more out of your money in a lot less time? Here are eight easy ways:
- Use Online and Mobile Banking. Wondering what your account balance is? Or if a check has cleared your account? Instead of calling the bank or reviewing your monthly account statement, enroll in Online and Mobile Banking to view up-to-the-minute account activity — any time. With these convenient services, you can check balances, transfer funds, and even set account alerts to notify you about specific account activity.
- Pay bills and people electronically. Think paying bills is a hassle? You can make it a whole lot easier by paying them electronically with online bill payment. You can pay just about anyone — from your babysitter to the utility company — with just a few clicks of the mouse. You can even arrange to have recurring bill payments, such as your rent or mortgage paid automatically each month.
- Set up automatic debits. Need to pay your gym membership or your monthly phone bill? You can save time by having billers automatically debit your account each month. All you need to do is provide your account number and your routing and transit number.
- Shop with your debit card. Whether you're going to the store or on vacation, be sure to bring along your debit card for a fast, safe, and convenient way to pay for purchases. Using a debit card is faster than writing a check and a lot safer than carrying cash.
- Deposit checks from your mobile device. Need to cash a check? With Mobile Deposit, you can deposit your check in seconds — right from your mobile device. You'll save a trip to the bank or ATM and will have faster access to your money.
- Sign up for electronic statements. You'll not only save valuable time storing and filing statements; you'll also help save paper – and the planet.
- Set up transfers to savings. For a convenient and easy way to save, arrange to have funds from your checking account automatically deposited to your savings account each month.
- Sign up for direct deposit. Why wait to receive a paper check on payday? With direct deposit, your funds can be automatically deposited into your checking or savings account on payday, giving you immediate access to your money.
Bank smarter and automate your banking today.
August 2024
The key to a good budget is including as much information as possible so you can adequately prepare and plan. It's important to keep accurate records of your spending so you can see where you can save money and how much you can reasonably spend.
What is your current income?
The first step in creating a budget is to total your income every month. Include only your take-home pay (your salary minus taxes and deductions). Your income may also include tips, child support, investment income, etc.
What are your monthly expenses?
Next, track your expenses. For bills that vary from month to month, use a monthly average. For example, if your cellphone bill is $45 one month and $55 the next, estimate $50 per month. For annual bills, divide the yearly cost by 12 for a monthly figure.
How much of your income should be spent?
Rent or mortgage payments plus your credit obligations should not exceed 35 percent to 40 percent of your gross monthly income (income before taxes or deductions). The amount you owe on credit cards, monthly car payment, student loans, and other monthly payments should not exceed 10 percent to 15 percent of your take-home pay.
Put it in writing.
Document and categorize your expenses. Tally up everything you spend money on. Don’t forget your daily coffee or snacks — those can add up quickly!
Do the math.
The last step in creating your budget is to total your expenses and subtract them from your monthly income.
Our online financial management tool,
My Money, can help you
create a budget, organize your personal finances. Just log in to your KS StateBank Online Banking account and look for the My Money tab to get started.
How'd You Do?
Did you have money left over at the end of the month?
If your income and expenses are EQUAL...
- You might be living paycheck to paycheck. Cut expenses and develop a savings plan in case of emergencies or unexpected expenses.
- But only because you're using credit to survive and paying only minimums each month, you may need to talk to a debt counseling service to help you get back on track to live within your means.
If you have MONEY LEFT OVER at the end of the month...
You're doing a good job of managing your expenses. Here are some suggestions for the leftover money:
- Open a savings account at a bank.
- If you already have a savings account, consider setting up automatic transfers to your savings account. Or if you have direct deposit, ask your employer to put a portion of your paycheck in your savings account automatically.
- Investigate whether your employer offers a 401(k) or other employee-matching savings plan. The contribution you make to this type of account is taken out of your paycheck before taxes.
If your total was negative and you DON'T HAVE MONEY LEFT OVER...
- You need to make adjustments immediately. Keep in mind that it's usually easier to cut back on expenses than increase your income. Analyze your budget to see where you can cut expenses — personal or entertainment expenses are often the easiest things to cut.
- Call your utility, phone, cable, cellphone providers. Cutting those bills could take just a phone call.
- Consider increasing your income by getting a second part-time job or by working overtime.
Take charge of your finances and your life by setting financial goals, planning a budget, and sticking to it.
This article was provided by the American Bankers Association.
How to Protect Yourself from Data Breaches
While there isn't really anything consumers can do to prevent a breach, you can be on the lookout for signs that something like this has occurred. And, if you receive formal notice from your bank or a retailer that your credit or debit card information was stolen as a result of a breach, there are steps you can take to protect yourself.
How can you avoid losing money due to a security breach?
Review your bank and credit card statements regularly to look for suspicious transactions. If you have online access to your bank and credit card accounts, it is a good idea to check them regularly, perhaps weekly, for transactions that aren't yours.
Contact your bank or credit card issuer immediately to report a problem. Debit card users in particular should promptly report a lost card or an unauthorized transaction. Unlike the federal protections for credit cards that cap losses from fraudulent charges at $50, your liability limit for a debit card could be up to $500, or more, if you don't notify your bank within two business days after discovering the loss or theft.
Periodically review your credit reports to make sure someone hasn't obtained credit in your name. By law, you can request a free copy of your credit report from each of the three major consumer reporting agencies (also known as credit bureaus) once every 12 months. Because their reports may differ, consider spreading out your requests during the year. To order a free report, go to AnnualCreditReport.com.
If you find an unfamiliar account on your credit report, call the fraud department at the consumer reporting agency that produced it. If that account turns out to be fraudulent, consider asking for a "fraud alert" to be placed in your file at the three main credit bureaus. The alert tells lenders and other users of credit reports that you have been a victim of fraud and that they should verify any new accounts being opened in your name or changes to your existing accounts.
What if you place a fraud alert in your credit files and then you apply somewhere for a new credit card, mortgage or other loan? Expect that the lender will call you for a confirmation. However, be aware that the fraud alert also may slow down the process of obtaining that new credit while the lender verifies your identity.
An additional but more serious step is to place a "credit freeze" on your credit report, which means that the credit bureaus cannot provide your credit report to lenders who request it. That, in turn, may prevent criminals from obtaining credit in your name, but it also will stop you from getting new credit until you lift the freeze.
Pay attention to notices from your retailer or your bank about a security breach. In the event of a large-scale breach, you may receive notice that your credit card is being replaced with one that has a new account number.
Also, the retailer may offer you free credit-monitoring services, usually for up to one year. This service provides an excellent way to see if a cyber-thief is using the stolen information to apply for new credit cards or loans in your name. And if you are not offered free credit monitoring, you may want to consider buying it at your own expense. Note: A credit-monitoring service can be costly, so research the options thoroughly and understand that you can monitor your own credit reports for free, as previously described.
Be on guard against scams offering "help" after a data breach. Be very careful about responding to an unsolicited e-mail promoting credit monitoring services, since many of these offers are fraudulent. If you're interested in credit monitoring and it's not being offered for free by your retailer or bank, do your own independent research to find a reputable service.
This article was provided by the FDIC Consumer News.
Labor Day
All KS StateBank locations will be closed on Monday, September 2 in observance of Labor Day. We’ll reopen at our regular times on Tuesday, September 3. Have a safe and happy holiday weekend!
July 2024
It’s never too late to assess your finances, gain control, and stick to a new budget or savings plan. Taking control of your personal finances will allow you to save and prepare for unexpected expenses. Get financially fit by following the tips below.
Get Organized
Consider treating yourself to a gift of a financial organization system. Alphabetized file folders or filing systems specifically for financial organization are helpful when preparing for tax season. While you're getting organized, consider buying a shredder to keep your personal information safe from identity theft.
Create a Budget
Track your income and expenses to see how much money you have coming in and how much you spend. If you have debt, establishing a budget will help you pay down your debt while saving. Use computer software programs or basic budgeting worksheets to help create your budget. Include as much information as you can and review your budget regularly. Print several copies of this budgeting worksheet to help you get started.
- Identify how you spend your money.
- Set realistic goals, especially if you plan to cut some of your expenses.
- Track your spending and review your budget often.
Lower Your DebtDebt from student loans, mortgages, and credit cards is pretty common. Most families carry about $10,000 in credit card debt. Establish a budget to pay down debts while you save. Avoid spending more money than you bring in, as that leads to financial stress.
Points to consider when cutting debt:
- Pay more than the minimum due and pay on time.
- Pay off debts with higher interest rates first.
- Transfer high-rate debts to credit cards with a lower interest rate.
- Use loans for purchases that will appreciate in value like a home.
Save for the Unexpected and Beyond
Pay yourself first. Saving is important; it ensures a comfortable future that can endure financial surprises. No matter how old you are, it's never too late to begin saving.
- Save at least 10 percent of your income for retirement. Enroll in a retirement plan or consider optimizing an established retirement plan. Contribute at least the maximum amount that your employer will match and increase your contribution as your income increases. Contributions made to these types of plans are tax deductible. If your employer does not offer a retirement savings plan, many banks offer Individual Retirement Accounts. IRAs offer tax-deferred growth, meaning you pay taxes on your investment gains when you make withdrawals.
- Financial advisors often recommend keeping about three months’ salary in a savings account in case of financial emergencies like hospital bills or home repair costs.
- If you receive direct deposit at work, ask your employer to send a specific amount to your savings account for an easy and convenient way to save. If your employer doesn't offer direct deposit, many banks provide automatic transfers from checking to savings accounts.
Our online financial management tool, My Money, can help you organize your finances, create a budget and save for the future. Learn more and log in to your KS StateBank Online Banking account to get started.
This article was provided by the American Bankers Association.
Peer to Peer Payment Scams
Peer-to-peer payments, or P2P payments, allow consumers to transfer money using their bank accounts, debit cards, or credit cards through a website or mobile app such as Cash App, Google Pay, Paypal, Remitly, Venmo, and Zelle. It’s like sending cash and the transfer usually requires just a few clicks.
Although P2P payment services can be easy to set up, simple to use, and are generally secure, it’s important to be aware that criminals may try to scam you into sending money.
Be on the lookout for some of these common scenarios:
- Scammers impersonating your bank may call to alert you about “suspicious activity” on your account and direct you to send money to yourself or “the bank’s address” to reverse a transaction or to verify the account is not frozen. However, your bank will never tell you to send money to anyone, not even yourself. Criminals try to make you believe you’re sending money to yourself, but you’re actually sending money to the impostor.
- Fraudsters may reach out claiming to represent a fraud department or merchant and ask you to confirm information such as your bank account username and password, credit card or debit card data, or Social Security numbers. But do not share this information — scammers want to create a P2P account with your information, steal your identity, and gain access to your accounts.
- Scammers posing as a legitimate business may request a P2P payment for a product or service. Once they receive your money, you never receive what you paid for and they disappear. Treat P2P payments like cash — don’t pay until you receive the product.
- You accept a work-from-home position and the new company sends you a check to deposit, then asks you to send all or part of the funds to someone else using a P2P service. Do not deposit the check — the company is a scam and the check will bounce, leaving you on the hook for the amount of the fake deposit.
- A scammer “accidentally” sends you money on a P2P service and asks you to send the money back. Never send back the money, and instead contact the P2P service about the error. Criminals’ accounts usually use stolen funds that the P2P payment service will eventually flag as a fraud. If you send money back to the scammer, the P2P service could take funds out of your account or hold you responsible.
- Con artists may ask to borrow your phone for a contrived emergency. Do not hand over your phone to strangers, as they could make financial transfers using your payment apps and accounts.
10 do’s and don’ts to protect yourself:
- Don’t send money to someone you don’t know or have never met in person.
- Don’t share bank authentication or verification numbers or your personal information with anyone who contacts you, even if caller ID indicates it’s a familiar company. Keep your account usernames and passwords, Social Security number, and bank account, debit, and credit card information to yourself. If you’re pressured or have any concerns, hang up and contact your bank directly using the number on the back of your card or on your bank statement.
- Don’t let any strangers persuade you to send money to yourself or to anyone else.
- Don’t let anyone you don’t know borrow your phone.
- Don’t do a Google search for customer service phone numbers. Scammers have created fake websites with toll free numbers that connect to them. Only call your bank using the number on the back of your card or on your bank statement.
- Do be sure to know and trust the other party who’s receiving your money. Confirm the name, email, phone number, or applicable identifier when you transfer money. If you make a mistake, even one wrong digit, you will send your money to someone else who may not give it back. Just like handing someone cash, your bank can’t get it back for you.
- Do set up alerts to notify you of any transaction on your account.
- Do enable multi-factor authentication — a step to verify who you are, like a text with a code — for all accounts and do not share the verification codes with anyone, including anyone claiming to be the bank.
- Do ensure that any bank or P2P app you use is updated so it is secure.
- Do be wary of accessing any financial or personal information on public Wi-Fi or mobile hotspots. They often lack security and hackers can capture sensitive personal information on these open servers.
If you are a victim of a P2P payment scam:
This article was provided by the American Bankers Association.
June 2024
What You Need to Know About Financial Caregivers
What is a financial caregiver?
A financial caregiver is someone you enlist to help manage your finances. For example, if you become ill, a caregiver can make sure you pay your bills on time, monitor your bank accounts, manage your investments, or file your taxes. Plan ahead and choose someone you trust before the need arises because life circumstances change as you get older.
The Centers for Disease Control and Prevention (CDC) indicate that 2 out of every 5 older adults have a disability, while the Alzheimer’s Association reports that 1 in 3 seniors dies of Alzheimer’s or another form of dementia.
A financial caregiver can help you protect your finances when you’re unable to handle your own affairs because of declining health or if you just need some extra support.
What can my financial caregiver do?
A financial caregiver can:
- Help you with day-to-day finances
- Organize your financial records
- Monitor your accounts to prevent financial exploitation, fraud, and identity theft
- Identify benefits you are eligible to access
- Plan for future financial needs
- The relationship you have with your caregiver will likely evolve over time, but always remember: you are in control of your finances. Your money should always be kept separate from your caregiver’s money.
Who should be your financial caregiver?
A financial caregiver should be someone you trust to carry out your wishes. Many people often rely on a family member or close friend; others rely on professional money managers. No matter who you choose, consider someone who is comfortable handling a lot of details and is efficient in meeting deadlines. You’ll want to identify someone who can communicate well with various groups of people, including both financial professionals and other family members. It’s best to have someone who is in good health, reliable, and can attend to your needs.
Enlisting a person who doesn’t know how to handle money, is in trouble with the law, or suffers from declining mental or physical health would not be an optimal choice.
Where can I learn more?
Check out the following resources:
This article was provided by the American Bankers Association.
Banking With Third-Party Apps
What to know about fintech, banking relationships, and deposit insurance
Technology has continued to transform the business of banking in recent years. Traditionally, consumers opened deposit accounts directly with banks (whether in-person, on the bank’s website, or through the bank’s mobile app). The easiest way for most consumers to have confidence that their money is safe continues to be opening an account directly with insured depository institutions, like FDIC-insured banks and savings associations.
Increasingly, some consumers are choosing to open accounts through nonbank companies (typically online or through mobile apps), such as technology companies providing financial services (often referred to as fintech companies), that may or may not have business relationships with banks. If and how a bank is involved is key to understanding whether or not your money is protected by deposit insurance. However, in some cases, it is not always clear to consumers if they are dealing directly with an FDIC-insured bank or with a nonbank company.
FDIC deposit insurance coverage
If you open a deposit account directly with an FDIC-insured bank, you are insured for up to at least $250,000 by the FDIC, which is backed by the full faith and credit of the United States government.
Most banks offer online and mobile banking options, in addition to having branches, giving you the ability to conduct your banking at a branch or while you are at home or on the go. Online or in person, bank customers with deposits at FDIC-insured banks benefit from deposit insurance coverage.
Nonbank companies
But what if you open an account with a nonbank company that says it will deposit your money in an FDIC-insured bank? Will you be eligible for FDIC deposit insurance coverage? The short answer is: it depends.
It is important to be aware that nonbank companies themselves are never FDIC-insured. Even if they claim to work with FDIC-insured banks, funds you send to a nonbank company are not eligible for FDIC insurance until the company deposits them in an FDIC-insured bank and after other conditions are met. If the nonbank company deposited your funds in a bank, then, in the unlikely event of the bank’s failure, you may be eligible for what is referred to as “pass-through” FDIC-deposit insurance coverage. However, the nonbank company must take certain actions for your funds to be eligible for FDIC insurance.
For example, after the nonbank places your funds on deposit at a bank, records must be kept to identify who owns the money and the specific amount that each person owns. Ownership of the money is important and is typically determined by the applicable deposit account agreements and state law. There are other requirements as well. It is important to make sure you read the disclosures and terms of service carefully to understand if the account may be eligible for FDIC insurance.
However, FDIC deposit insurance does not protect against the insolvency or bankruptcy of a nonbank company. In such cases, while consumers may be able to recover some or all of their funds through an insolvency or bankruptcy proceeding, often handled by a court, such recovery may take some time. As a result, you may want to be particularly careful about where you place your funds, especially money that you rely on to meet your regular day-to-day living expenses.
Nonbank companies, including fintechs, may offer a variety of financial products and services. They may or may not offer access to deposit products at banks that are FDIC-insured. If a nonbank company claims to offer access to products that it states are FDIC-insured, you should identify the specific FDIC-insured bank or banks where they say they will deposit your funds. You can confirm that the bank they claim to be working with is FDIC-insured using
BankFind. If technology glitches happen with the services provided by a nonbank company, such as at its app or website, you may experience error messages, slow response times, or site crashes that temporarily impede access to your accounts or other mobile banking services. Be sure to contact the nonbank company’s customer service as soon as possible to help resolve the issue.
How can I avoid fake banks and apps?
You should be aware of the potential for scams and be vigilant about protecting your money. Scammers often create fake websites that are so similar to bank websites, they can easily trick consumers into providing personal information or money. Scammers have also developed fake apps that contain malware. When you download the app, the malware steals personal information from your device or locks it, holding it for ransom until you pay the scammers. Be careful of apps or websites that ask for suspicious permissions, such as granting access to your contacts, text messages, stored passwords, or credit card information.
To determine whether you are dealing with an FDIC-insured bank and check whether the URL is in the FDIC’s records, you can use our
BankFind tool. Because many FDIC-insured banks have provided URLs for their websites, if a website is listed in the FDIC’s records then you can be more confident that it is run by a bank. You can also contact the FDIC at 877-ASK-FDIC (877-275-3342) from 8:00 a.m. to 6:00 p.m. ET Monday through Friday, or 8:00 am to 1:00 pm ET Saturday, to report a suspected scam.
In addition, you can call an FDIC deposit insurance expert at 1-877-ASK-FDIC or email the FDIC through their website, ask.fdic.gov. FDIC deposit insurance experts are happy to help confirm whether or not you are dealing with an FDIC-insured bank and assist you with any deposit insurance-related questions.
It is important to understand who you are dealing with before turning your money over or sharing personal information. If you send money to a scammer or fraudster, it may be difficult or impossible to recover your money. Knowing the characteristics of impostor scams and fake bank websites and apps can help you avoid becoming a victim.
This article was provided by FDIC Consumer News.
Upcoming Federal Holidays
Juneteenth
KS StateBank branches and offices will be closed on Wednesday, June 19 in honor of Juneteenth. We will reopen during regular hours on Thursday, June 20.
Independence Day
Our branches and offices will also be closed on Thursday, July 4 for Independence Day. We'll reopen on Friday, July 5 during regular hours.
May 2024
Important Things to Know About Home Equity Lines of Credit Before You Borrow
There are so many benefits of owning a home, like having control over where you live and the opportunity to build equity in a valuable asset. That equity also offers another benefit – the ability to borrow to finance life’s expenses with a home equity line of credit or HELOC for short. HELOCs can be a smart way to finance life’s expenses. But before you apply for one, make sure you understand how they work. Let’s take a look:
What is a home equity line of credit? A home equity line of credit essentially is a second mortgage on your home secured by the equity in your home, which is the value of your home minus the amount you owe on your mortgage. It’s a revolving line that allows you to borrow and repay funds over and again.
How do HELOCs work? With a HELOC, you have a 10-year draw period to borrow funds. During that time, you’ll only have to make minimum, payments of interest. After the draw period, your line will enter repayment when you must make fixed monthly payments of principal and interest. After the 10 years are up, you can choose to continue with the HELOC by refinancing it for another 10 years or pay it off.
How is interest charged? When you get a home equity line of credit, you’ll have a maximum line amount, the total amount you can borrow. You will only pay interest on the amount of your line that you use.
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.
HELOCs offer variable rates tied to an index, such as the Prime rate. When that index changes, your interest rate will change as well.
What types of expenses are ideal for HELOCs? HELOCs are ideal if you want to borrow over time to meet ongoing expenses. For example, you may want to use a HELOC to make home improvements or as a safety net to help you prepare for unexpected expenses.
What’s the difference between a home equity line of credit and a home equity loan? A home equity loan also lets you borrow with your home’s equity. However, unlike a HELOC, a home equity loan disburses funds in a lump sum. In addition, while HELOCs offer a variable interest rate, home equity loans offer a fixed interest rate for a fixed term. That means you’ll have to make fixed monthly payments of principal and interest for the duration of your loan. Please note that KS StateBank does not currently offer home equity loans.
Let’s Talk About Spam Texts and Emails
Another day, another round of spam texts and emails trying to sell you things. At best, spam is annoying. At worst, it’s pushing scams or trying to install malware on your device. If you’re tired of getting spam, there are some ways to help.
When scammers send spammy messages that seem legit (but aren’t), they’re often trying to trick you into clicking links and giving them personal or financial information. Things like your passwords or bank account and Social Security numbers are valuable to scammers. With that access to your accounts, scammers could try to steal your money or your identity. Or both.
To help you cut down on spam and avoid scams:
- Use filters. Your mobile phone probably has options to filter and block texts from unknown senders. Some wireless providers and call blocking apps can also help block unwanted messages. Many popular email providers (like Gmail) have strong spam filters turned on by default. But if any spam gets into your inbox, mark it as spam or junk.
- Protect your personal information. Before you enter personal information on a website, email, or text chain, stop. Ask yourself: Why do they need this information? And what’s going to happen to it? Remember, too: never share your Social Security number with someone who reaches out to you.
- Unsubscribe from unwanted emails. Getting fewer unwanted emails helps you avoid clicking on links that can lead to a phishing attack.
- Report unwanted messages. Unwanted messages often lead to scams. Report them. Use your phone’s “report junk” option or forward unwanted texts to 7726 (SPAM) and unwanted emails to your email provider.
Learn more about how to get fewer spam texts and emails. If you spot a scam, report it to the FTC at ReportFraud.ftc.gov.
This article was provided by the Federal Trade Commission.
Memorial Day
We will be closed on Monday, May 27 in honor of Memorial Day and in remembrance of those who gave their lives serving in the United States Armed Forces.
April 2024
Travel Tips: Bon Voyage
Safe travels with your money
Considering a vacation soon? In the rush of preparing for travel, it is easy to forget the steps you should take to protect your finances while you are away. Here are some ways to avoid money-related travel issues, save money on fees, and greatly improve your chances for a safe, pleasant journey.
Decide on the amount of cash or credit you may need on the trip
For your own security, it is not a good idea to take large sums of cash anywhere. If lost or stolen, you cannot replace it. Only carry enough cash for local transit, tips, and other small expenses. Use credit cards when you can, because they are readily accepted by merchants worldwide and can easily be replaced if lost or stolen. If you need cash fast, even in a foreign country, you can usually get it from an automated teller machine (ATM) using most of the same cards you use back home. Before you travel, ask your bank about any fees, such as an ATM or foreign transaction fees, they may charge for using your debit or credit card at your destination. Read more about
Overdraft and Account Fees here. Some suggestions to consider:
Before leaving, consider putting jewelry and other valuable items in a safe deposit box at your financial institution. Other options may include a secured safe in your home or trusted relative or friends.
Make two copies of your passport identification page, driver’s license, vehicle registration, airline, or other tickets, and your itinerary. Leave one copy at home with a relative or friend, and carry the other one with you separately from the items themselves. Do the same with your list of important numbers, which might include phone numbers for your credit cards, bank, property insurance, and health insurance companies.
It is not a good idea to include credit card numbers or your Social Security number on this list, because the information could fall into the wrong hands, and be sure to carry the list with you; do not pack it.
Credit card blocking most often occurs when you rent a car or check into a hotel and present your credit card. The clerk can electronically ask the bank that issued the card to “block” (reserve) part of your line of credit to cover the expected cost before you use it for other vacation purchases. If it is a hotel, what is usually blocked on arrival is the cost of your room for the length of stay, plus incidental expenses you may incur, like meals and phone calls. In the case of rental cars, it could be the cost of the rental plus fuel charges. There is nothing sinister or illegal about it, as long as the amount blocked is not out of line with what the customer is likely to pay at the end of the transaction.
If you leave on vacation with your credit card near the limit or if you are a business traveler who spends long periods on the road, you should be aware of credit blocking. Any additional transactions you attempt after you hit your credit limit could be rejected.
You do not want essential services to be cut off while you are away on a long trip. Check the due dates on all bills, especially utilities and auto insurance, to see if payments will come due in your absence. If so, make those payments before you leave or pay them online from wherever you are (set a reminder and be mindful of time differences). Placing bills on auto pay may be an option too.
An upcoming trip is also a good reason to consider signing up for direct deposit, if you have not already done so. With direct deposit, you do not have to worry about possible theft of the checks by mail and you know the funds will be in your account on a certain date, a comforting thought whether you are away or at home.
Keeping these tips in mind will help you avoid money-related issues during travel, save on fees, and reduce your stress, so you can enjoy a pleasant journey.
Your relationship with money can get very complicated, especially when you feel like you don’t have enough. Things can get even more complicated if you are not mindful about your behaviors, like spending money impulsively, living beyond your means, and racking up costly debt.
