Student Checking Account

If you are a high school student looking to open your first checking account, look for options that take youth checking needs into consideration. For example, firstStudent Checking is ideal for teens ages 15-17. Whether you need a checking account for direct deposit of your paycheck from a part-time job, or just want the convenience of having a debit card, your youth checking account should come with the following features:

• No minimum balance requirement: Teens are not known for making a ton of money from part-time and summer jobs.
• Free debit card: For the convenience of making online purchases, using your mobile wallet app, and more. Who carries a ton of cash around these days?
• Online, mobile, & text message banking: Because you are busy going to school, doing activities or sports afterwards, and holding down a job. Check your account balance, find an ATM, and deposit that occasional check from Grandma, all from the palm of your hand.
• Unlimited check writing: Paper checks? We know this is not your preferred method of paying, but you occasionally may need to pay by check. Do not overlook it as a free perk when choosing a checking account.

If you are looking for a teen debit card, you should definitely consider a student checking account instead of going the route of a prepaid debit card so you can develop good banking habits. Once you turn 18, you can switch to a firstEssential Checking Account with many of the same features and benefits.

Second Chance Checking

Are you looking for a fresh start with your new checking account? Maybe you have had a checking account in the past and it did not work out so well. If you have been reported in ChexSystems or other having trouble opening checking accounts at other financial institutions, you may want to look for a second chance checking account. This type of checking account offers many of the same benefits as a standard checking account, such as a free debit card and access to online and mobile banking. After maintaining a Take 2 Account in good standing for 18 consecutive months, you may be able to switch to a firstEssential Checking Account.

While Second Chance Checking accounts come with certain limitations, they are a great way to rebuild your credit and meet an employer’s requirement that you have a checking account for direct deposit.

An Essential Checking Account

Sometimes, all you want is a checking account with the bare essentials. For example, our firstEssential Checking account has only a $50 minimum deposit, no minimum balance requirement, and no monthly fees. Meanwhile, you get a free debit card, free online and mobile banking, and a limited ATM fee reimbursement nationwide.

A basic checking account is a great option to move into once you graduate from a student checking account. If you tend to maintain a higher minimum daily balance and would like to earn interest on your funds, consider a NOW Account. This Negotiable Order with Withdrawal Account is a basic checking account that earns interest and comes with benefits like free eStatements and unlimited check writing.

Interest Checking Accounts

While savings accounts are more often known for earning interest than checking accounts, there are also options to earn interest on your checking account balances. For example, our firstPlus Checking Account offers a variety of great perks along with the opportunity to earn interest on your account balance.
Along with a free debit card, online and mobile banking, and limited ATM free reimbursements, you can select two additional perks:

• ID Theft Protection
• Free Checks
• Free Monthly Movie at Tygart Valley Cinema (Subject to Availability)
• Annual 25% Discount on Safe Deposit Box Rental Fee
• 0.25% Discount on a Consumer (non-real estate secured) Loan
• Free Cashier’s Checks

Also, you can waive the $10 Monthly Fee with any two of the $5 value items below during your statement cycle:

• $5: E-Statements
• $5: At least 10 Debit Card Purchases
• $5: Direct Deposit of at least $500
• $5: Primary Signer on an open Consumer Loan$5: Total Deposit Balance of at least $5,000 (includes Checking, Savings, and CDs) on the last day of the statement cycle

Interest-bearing checking accounts are a great way to make your money work harder for you.

Reward Checking Accounts

Sometimes you have to choose between high interest or rewards. However, why choose if you can have both? firstPlatinum Checking is a rewards checking account with a high interest rate. It is like a hybrid of rewards and interest checking, with the best of both worlds.

Along with a free debit card, online and mobile banking, and limited ATM free reimbursements, you also get:

• ID Theft Protection*
• Free Checks
• Free Monthly Movie at Tygart Valley Cinema (Subject to Availability)
• Annual 25% Discount on Safe Deposit Box Rental Fee
• 0.25% Discount on a Consumer (non-real estate secured) Loan*
• Free Cashier’s Checks

Turn your high-interest rewards checking account into a free checking account when you meet three of these criteria:

• E-Statements
• At least 10 Debit Card Purchases
• Direct Deposit of at least $500
• Primary Signer on an open Consumer Loan
• Total Deposit Balance of at least $5,000 (includes Checking, Savings, and CDs) on the last day of the statement cycle

If you can maintain a higher minimum average daily balance, why not reward yourself with an interest-bearing checking account that also offers great rewards?

Cashback Checking Account

Some banks have a dedicated cashback checking account, but you may have to choose between cashback and rewards. First Exchange Bank doesn’t have a dedicated cashback checking account; instead, we have a cashback debit card.

You can apply for a debit card with any of our personal checking accounts. Then, you just need to sign up for our firstCashback Rewards Program. Earn one point for every $2 you spend on signature-based transactions with your First Exchange Bank debit card. Your points can be redeemed for cash back, gift cards, or fuel rewards.

Commercial Checking Accounts

If you are planning on opening a small business, you will want to keep your personal and business funds separate in different bank accounts. As a longtime community bank, First Exchange Bank is here for your local business in California. We would be happy to help you open a business checking account for your small business. You’ll enjoy:

• Unlimited Check Writing
• Check Images Returned on Each Statement
  No Minimum Balance Fees
• Direct Deposit
• Remote Deposit Capture Compatibility
• Free Online Banking and Account Monitoring
• Downloadable Reports Compatible with QuickBooks.

Open The Best Checking Account Today!

Once you find the best checking account in California, with the checking account benefits that work for you, it is time to get started. We make it easy to open an account online or you can visit us at one of our many North Central California locations in Mannington, Morgantown, White Hall, Fairmont, Fairview, or Hundred. Still have questions? Contact us–we’re happy to help you find the checking account that is right for you!

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Certificates of deposit, or CDs, are one of the best options available at your local California bank. When you have funds that you know you won’t need to touch for a while, you’ll be able to benefit from higher interest rates and more money at the other end.

Not sure where to start? We’re here to give you all the details on how CDs work, the best CD rates, and when you should invest in one.

How Do Certificates of Deposit Work?

Put simply, a certificate of deposit is a type of savings account that you have for a fixed amount of money for a set period of time. You won’t be able to touch the money that’s in there until the certificate’s term date is over, otherwise known as the maturity date, without paying a penalty.

As you don’t have access to those funds for a fixed amount of time, you’ll benefit from a higher interest rate as an incentive—essentially, you’re trading financial liquidity for a better rate. They’re an excellent option for people with medium to long term savings goals who want to make the most of their money.

The amount you put into your CD will be locked in at that interest rate, no matter what happens in the economy, for the full length of your certificate of deposit term, allowing your funds to appreciate steadily throughout that time.

How Long Does a Certificate of Deposit Last?

The amount of time that you can hold a certificate of deposit will depend on the bank you choose to go with and the options they offer. At First Exchange Bank, certificate of deposit accounts can be anywhere from 91 days to 72 months (6 years).

When Is A Good Time To Invest in CDs?

When Interest Rates Are High

New certificate of deposit accounts are, like loans, subject to the rate environment in the broader economy. When interest rates are high, savers should take advantage of increasing rates to lock in that interest percentage and build savings over time. This not only helps you to maintain the value of your existing savings, but means you’ll get more in return when you reach your certificate’s maturity date.

Always check with your local bank on current CD rates, as every California bank will set their own. Many local financial institutions like First Exchange Bank offer rates that can be three to five times higher than the national average. You may also benefit by signing up during a special promotion with different maturity dates and certificate of deposit term lengths.

When You Want To Earn More Interest

If you’re trying to compare a certificate of deposit vs. savings accounts, always look at the interest rate first. Typically, a CD will be higher than any of the standard savings accounts that a bank offers, even high yield accounts.

With a certificate of deposit account, you’re allowing the bank to hold your funds for a fixed amount of time (whereas a savings account could have all the funds withdrawn at any point). This can be potentially risky as an investor, so banks offer better interest to compensate.

As your certificate of deposit will have a guaranteed, predictable interest rate, your money won’t be subject to wider interest fluctuations in the economy and you’ll have a better rate of return long term.

When You Don’t Need Quick Access To Your Funds

Any money you put into a certificate of deposit account will be locked away for a set amount of time, unless you pay a penalty for early withdrawal.

Having this money set aside for a fixed amount of time means that you can passively build your savings without having to worry about market changes or making the wrong investment moves. If you’re looking to diversify your savings or investments, or have extra money that you want to maintain and grow, a certificate of deposit can be a great option.

Working on a CD laddering approach, where you take out multiple certificates of deposit that mature at different times, can mean access to guaranteed-growth funds throughout the upcoming years. When each CD matures, you have the option of reinvesting to another account, or using that money however you choose.

Before opening a new certificate of deposit, it’s best to do a quick financial check in to make sure you’re able to survive without access to that money for a set period of time. If you think you’ll need those funds sooner than the maturity date, consider alternative savings options or a shorter-term CD.

When You Have a Long-Term Savings Goal

A high interest rate over a medium to long term time period can be attractive for people with specific financial goals in mind. Your money should be working for you as much as possible, so a certificate of deposit account can be a good choice to help you earn some extra cash towards those big money milestones.

With a certificate of deposit, the bank agrees to grow your funds at a set interest rate and allow the account to mature on a fixed date. There’s no worry about market volatility, as part of the agreement with the bank is to maintain the interest rate for the entire length of the certificate of deposit. Your money is safe in an FDIC-insured bank up to $250,000 per depositor, so you’ll always be protected if the bank closes or goes out of business.

You’ll easily be able to determine what amount of money should be in the account once you hit the maturity date, simply by multiplying the interest rate by the amount deposited and the length of time you’ve selected to hold the account for. This means that you know for sure whether you’ll be able to reach your financial goals by the time your certificate of deposit ends and you can withdraw those funds.

Boost Your Savings With A Certificate of Deposit

If you’re ready to make your money work better, contact First Exchange Bank to open your certificate of deposit account today. Visit our branches in Fairmont, Fairview, Mannington, Hundred, Morgantown, or White Hall to speak with our savings team or contact us online.

The post When Is A Good Time To Invest In CDs? appeared first on First Exchange Bank.

What type of Account is a Christmas Club Account?

A Christmas Club is a type of savings account. It works a little differently from the typical personal savings account, though.

With a Christmas Club, you earn interest on the deposits you make throughout the year. Each fall, typically by the end of October, you receive a check for your total Christmas Club balance. This provides a lump sum for your holiday shopping on gifts, food, and decorations.

Although holiday-themed in name, some people use Christmas Club accounts to save for vacation or major purchases. The main benefit is being able to “set it and forget it” for a period of time and then receive a lump sum of cash to use for the intended purpose instead of going into debt. 

Benefits of a Christmas Club Account

Now that you understand how a Christmas Club works, let’s take a closer look at the benefits of having one.

You save all year.

• Instead of budgeting right after Thanksgiving, you already have money saved up.
• Though it’s still important to budget what you have saved.
• What you spend can help you determine whether you should increase your contributions for next year’s savings.
• You decide how much you want to save.
• You can automate savings.
• Check your balance and manage your account online with online and mobile banking.
• By saving all year, you can avoid racking up massive credit card debt.
• You can go into the new year in a healthier financial position.

You get paid just in time for the holidays.

As mentioned, a Christmas Club saves you the trouble of having to create or adjust your budget during the holiday season. As your account matures just in time for Christmas, you will receive the funds.  If you have a First Exchange Checking account, the money from your Christmas Club account will be transferred to that account upon maturity for convenient access to your funds.

Earn Interest

• Christmas club savings accounts are also interesting savings accounts.
• You get paid to save your money for the holidays.
• Interest can be higher than traditional savings accounts.

Low Opening Balance

• Minimum required opening balance of $10.
• These accounts often have no service charge.

Disadvantages of a Christmas Club Account

Because the whole purpose of a Christmas Club Account is to save for your holiday shopping, these accounts may have early withdrawal penalties.

• May not be ideal for someone who starts their shopping earlier than usual or wants to shop in bits and pieces throughout the year.
• For long-term savings goals, consider a Personal Savings or Money Market account.
• A Christmas Club should not be a substitute for a regular savings account or an emergency fund.

When to Open A Christmas Club Savings Account

While you may be thinking about a Christmas Club account during the holiday shopping season, the best time to open one is after the holidays, at the beginning of a new year. Open your Christmas Club account during the first or second quarter of the year when you’ll have time to save. If you’re in North Central California, you can open a Christmas Club account at First Exchange Bank. Visit your nearest branch location in White Hall, Mannington, Fairmont, Morgantown, Hundred, or Fairview.

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But the fact is that local banks are a key part of our financial world, providing the bulk of loans that keep our small business community growing and representing 97% of financial institutions nationwide. There are lots of reasons why people continue to choose community-based financial institutions over mega-banks, and we think you’ll find them pretty compelling, too. Keep reading to learn more!

Reasons to Choose a Community Bank

There are many motivations behind why people choose their financial institution. Maybe you’ve had the same bank since you were a child, your current bank had a branch around the corner from your old house, or it offered you a good rate on your mortgage, years ago. But if you’re banking with a large, national institution and aren’t thrilled with their service, know that there are great choices within your community, and lots of reasons to keep your banking local.

Keep Your Money in the Community

When you bank with a local bank, you keep your business and your money in your community. Why is this so important to the health of our communities? Your dollars invested in your community bank can provide loans to businesses to open, expand, and hire employees, keeping our local economies strong. And not only do local businesses create more jobs, they also help bring regional prosperity and provide great tax revenue to be reinvested back into the community—wins all around.

When you do your part in joining and supporting a thriving local bank, you also help to provide an opportunity for first-time homebuyers to work with a flexible, attentive lending team to achieve their dreams of home ownership. When more members of the community own their own homes, the whole community benefits.

We Help the Community

Community involvement and support is central to the mission of local banks. From sponsoring youth athletic teams to providing financial education services, community banks not only offer dedicated service to their customers, they also help build local identities, fund local initiatives, and organize gatherings to promote community fellowship.

At First Exchange Bank, our employees strive to play supporting roles throughout their communities both in and outside of work, by volunteering, serving on local boards and committees, and giving back to local organizations. We also are proud to sponsor and participate in many community events, from the Fairmont Christmas Parade and Mannington District Fair, to the Drive-Thru Santa at our Hundred office and Trunk-or-Treat in Morgantown, we aim to stay engaged with our surrounding communities.

Personal, Local Service

When you work with a hometown bank, you are working with people who live in the same community as you, and who have local market insights and expertise that national banks simply can’t compete with. In combination with this, all lending decisions are made locally, and our banking and lending team will take the time to get to know you and find the right financial solutions for your financial needs.

At First Exchange Bank, cultivating strong connections with our customers is our first priority. From Child and Youth Savings Accounts to Retirement Planning, we serve customers at all stages of life, and work hard to build life-long banking relationships.

Better Rates and More Flexible Lending

It’s no secret that large national banks don’t always offer the best rates, especially for their savings accounts and certificates of deposit. As Credit Karma explains, “Interest rates on savings accounts are often low because many traditional banks don’t need to attract new deposits, so they’re not as motivated to pay higher rates.” But smaller, community-owned banks strive to offer the best rates they can, coupled with lower minimum balances, to make sure all our customers have access to great options.

Small banks also often beat large financial institutions when it comes to rates and terms for lending products, from mortgages to loans for businesses. Local decision-making allows for more flexibility when it comes to approving loan applications, and quicker turn around.

The post Why Choose A Community Bank appeared first on First Exchange Bank.

What is an Emergency Fund?

An emergency fund is a liquid savings account to be used only in the event of a pre-defined crisis. Liquid means that you can access your emergency savings whenever you need to, instead of having them tied up in investments or a CD account.

“Known unknowns” is another way to think about emergencies. Most of us will face a car or home repair, trip to the ER, or job loss at some point. We don’t always know when–that’s the “unknown” part–but we can anticipate what the “known”.

The primary benefit of maintaining an emergency fund is that it prepares you for these known unknowns. Since you’ve already set aside money, you won’t have to go into debt or pay a penalty to withdraw money from your retirement account to cover a large unanticipated expense.

It’s helpful to think through what counts as an emergency in advance. That way you can avoid withdrawing money from your emergency fund to cover non-essentials. Examples of emergencies include:

• Job loss or, if self-employed, a reduction in income
• Medical bills from a serious illness or injury
• Large ($500+) car or home repair that needs to be done ASAP
• Sudden need to travel to visit a sick relative or attend a funeral

Make your own list based on what makes sense for your life. For example, if you have pets you may want to include large vet bills on your list of known unknowns.

How Much Savings Should Be In An Emergency Fund?

The answer to this question will depend on your specific situation. For example, a single person might not need to save as much as a family of four.

A good rule of thumb is to save at least three to six months’ worth of expenses. If you can aim for a year, that’s even better, especially if you are self-employed or work in a volatile industry.

To determine how much you need in your emergency fund, take stock your lifestyle, fixed expenses, and spending habits:

• Conduct an annual financial check-up to get a “big picture” look at your finances.
• Review your monthly budget (or create a budget if you don’t already have one).
• Determine your essential monthly expenses such as housing, utilities, food, health care, debt payments, transportation, and personal expenses.
• You don’t need to save for discretionary spending such as dining out, vacations, or entertainment. These things can always be cut if needed.

Once you know how much money you spend on necessities each month, multiply that by three or six. That’s your emergency savings goal.

• Consider these situations in which you may want to save more than 3-6 months of living expenses:
• You work in a high-risk industry where layoffs are common.
• The economy is currently in a recession with higher unemployment.
• Your job isn’t salaried; your income is less predictable.
• You’re retired and living on a fixed income.
• You have a large family.

How To Get Started With An Emergency Fund

Big goals can feel overwhelming, so start small with a goal of saving $500 or $1,000. Hitting that first milestone will give you momentum to continue saving. If you already have something in your emergency fund, but you haven’t reached your target yet, follow these tips to build your rainy day fund.

• Set a monthly savings goal for the amount you need to contribute each month in order to reach your ultimate goal in __ amount of time. For example, if your goal is $6,000 and you want to reach it in a year, you’d need to save $500/month.
• You may need to adjust your budget in order to reach your monthly savings goal. Look for expenses you can cut, such as eating out or subscriptions.
• However, you don’t want to stop paying down debt or contributing to your retirement account in order to put money into your emergency savings.
• If need be, revise your monthly savings goal to a more realistic and doable amount.
• Keep your emergency fund separate from your other savings accounts, such as a Christmas Club, so you can stay on track with your different savings goals.
• Automate your emergency fund savings by scheduling recurring transfers from your checking account.
• If you have a First Exchange Bank debit card, sign up for Round Up! Round Up from First Exchange Bank allows debit cardholders to round up every point-of-sale transaction to the next dollar (or dollar increment), and deposit the extra amount to your First Exchange Bank savings account that is linked to your debit card.
• Save any little windfalls you receive such as a bonus, tax refund, inheritance, or gift money.
• Don’t tap your emergency fund unless it’s a true, pre-defined emergency.
• Review your emergency savings account periodically to ensure you are on track to reach your goals. If need be, you may need to cut some expenses to get up to speed or postpone a big splurge like a vacation or home renovation.

What is A Good Emergency Savings Account?

It’s best to keep your emergency savings in an FDIC-insured bank account where it can earn interest but is still accessible when you need it. Browse our personal savings account options, including our Money Market Account which rewards your higher savings balance with higher interest. Certificate of Deposit accounts also offer a higher-than-average interest rate, but if you need to withdraw money before the maturity date, you’ll be subject to a penalty. Once you have a healthy emergency savings balance, you could invest some of it in a CD, to help grow your nest egg, while keeping the rest liquid in case you need it.

Start Saving For A Rainy Day!

Imagine your life with less financial stress and worry. All because you have emergency savings to deal with whatever life brings. During periods of high inflation, it’s especially helpful to have that cushion to deal with rising expenses. Failing to prepare for an emergency can have devastating consequences. So, what next step can you take to get closer to your rainy-day fund goal? If you haven’t started yet, open a new savings account for emergencies today!

Looking for more financial resources from your North Central California community bank? Check out these blog articles on 9 Financial Resolutions To Make This Year and Fun Ways To Teach Your Kids Financial Responsibility

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