Maximize Your Mobile Banking Experience

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Mobile banking is more than just a convenient way to check your accounts on the go – it’s a toolbox.

In fact, when you log-in to your account, you have dozens of tools at your disposal, and the best part, they’re free! If you’re enrolled in mobile banking, but not taking advantage of various alerts and account preferences, use the below tips to turn your digital banking into an aid for managing your money and monitoring your account activity.

Mobile banking is more than just a convenient way to check your accounts on the go – it’s a toolbox.

In fact, when you log-in to your account, you have dozens of tools at your disposal, and the best part, they’re free! If you’re enrolled in mobile banking, but not taking advantage of various alerts and account preferences, use the below tips to turn your digital banking into an aid for managing your money and monitoring your account activity.

1) Set Up Alerts

In the F&M Bank mobile app, customers can set up various text alerts based on account activity. Here are a few alert options you can access in minutes.

Balance

If you are not proactive at checking your account balance on a regular basis, you can receive a text either daily, or monthly, depending on your preference. This is a great way to ensure your checkbook and online account balances match!

  • Daily balance – This will send an alert of your daily balance for a particular account.
  • Monthly balance – This will send an alert once a month of your current balance on a particular day.

Balances Above/Below

You also can set up alerts that notify you when your account balance falls below or goes above and indicated amount. For example, if you establish an alert and indicate $1,000 as your preferred checking account balance, you will be alerted via text if an expenditure drops your balance to $950. This tool can serve as a wake-up call for overspending, or a pleasant surprise for those trying to achieve a savings goal.

  • Balances above/below – This will send an alert when your balance falls below or goes above the amount you define.

Transaction

This tool alerts you when certain transactions are made. You can select which transactions interest you (ACH, Debit Card, Wires, etc.), or, you can select all. A dollar amount must be established. For example, if you want to receive a text every time a debit card transaction is made greater than $50, you can set up that alert in minutes. This is a great way to monitor fraud, and ensure you are aware of the purchases being made on your account.

  • Transaction – this will send alerts when particular transactions are applied to your account.

To begin setting up alerts, visit the “Text Banking” tab in the mobile app.

2) Make Savings Automatic

Take advantage of the automatic transfer tool in online banking to build your savings. If you know your paycheck posts to your account every Friday, schedule a weekly transfer from your checking account to savings. If you don’t think you can afford to save a large amount each week, start small. By setting up an auto-transfer, you’re consistently saving, and that is what is important. Just click, the “Transfers” tab in the mobile app to get started.

3) Protect Your Accounts with Touch ID

F&M Bank’s mobile app is extremely secure – it uses 128-bit SSL (Secure Socket Layer) encryption to protect your information and we don’t store any information on your phone. You are required to log in each time you access your account information or bill pay services through Mobile Banking. Instead of entering your username and password every time, use your thumb print instead! Just visit the “User Options” tab to set up this feature.

4) Deposit Checks on the Go

Deposit checks quickly and safely with the F&M Bank mobile app!

  • Sign in to the app.
  • Click on “Mobile Deposit Capture”.
  • Choose deposit checks. Or, click transactions to view recent deposits.
  • Follow the prompts on your mobile screen.
  • Confirm the details are correct and press “submit”.
  • You will come to the final screen – press “I agree”, and you are finished.

 

Why Payday Loans Don’t Make Financial Sense

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Life happens. The washing machine dies in the middle of a load, or you discover that your last visit to urgent care wasn’t covered by insurance. It’s not always possible to pay for these surprise expenses on the spot. This is when payday loans may become tempting. Here’s what you need to know about payday loans and why they shouldn’t be part of your financial strategy.

Life happens. The washing machine dies in the middle of a load, or you discover that your last visit to urgent care wasn’t covered by insurance. It’s not always possible to pay for these surprise expenses on the spot. This is when payday loans may become tempting.

Here’s what you need to know about payday loans and why they shouldn’t be part of your financial strategy.

What’s a payday loan?

Payday loans are small, short-term loans, often of $500 or less. They’re usually due within two weeks, or on your next payday. Many borrowers choose them because they’re so easy to get: Lenders don’t require collateral and rarely run credit checks. But you will pay for the convenience.

Most lenders charge a fee of $15 per $100 borrowed, according to a study done by the Pew Charitable Trusts. To be approved, you must allow the lender access to your checking account or submit a post-dated check for the amount you’re borrowing, plus the fees.

What’s so terrible about 15%?

Maybe you’re wondering what the big deal is: 15% sounds comparable to credit card interest. With payday loans, though, that 15% is due by your next payday, making your annualized interest rate almost 400%. If you can pay it back on time, one payday loan won’t bankrupt you, but if you don’t have that cash in two weeks, you can easily get trapped in costly ongoing debt.

In fact, more than 80% of payday loans are renewed or followed by another loan, with the borrower paying additional fees. This creates a vicious cycle of debt for those who can least afford it.

Statistically, people who take out payday loans are more likely to have relatively low incomes and long-term cash flow challenges.

Are there alternatives?

Payday loans are a bad deal, and if you need fast cash, you often have better options:

• Church-backed loans: Your church, temple, synagogue or mosque might offer small, low-interest emergency loans.
• Life insurance loans: You might be able to borrow against an existing cash-value policy at low interest. You have your whole life to pay back these loans.
• Family/friend loans: Someone close to you might be willing to help.
• Payroll advances: Your employer might offer a cash advance on your salary.
• Personal loans: These installment loans are available through credit unions, banks and lending companies. They generally have fixed interest rates, don’t require collateral and provide comfortable repayment terms.
• Retirement accounts: The government allows you to withdraw funds from your IRA or 401(k) penalty-free, provided you put the money back within 60 days. This option only makes sense if you’re absolutely sure you can pay it back in time.
• Account or credit card advance: Your bank, credit union or credit card company might provide cash advances. Interest rates tend to be high, but are still lower than those for payday loans.
• Peer-to-peer lending: These online loans usually have high interest rates, but they’re also more affordable than payday loans.

Expenses often pop up at the worst possible times, but you don’t need a payday loan to bail you out. By exploring more affordable alternatives, you really can make it through today without stepping all over tomorrow.

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

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How to Avoid Pay Day Loan Fraud

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The bank has noticed an upswing in this type of fraud and would like to help educate our customers as to how this occurs, and what you can do to protect yourself or a loved one from such a scam.

“Pay day” loan fraud is a new trend our bank is seeing where customers apply online for a loan, and as part of the application process, are instructed to enter the online banking ID and password for their financial institution.  Applicants are also asked for the answers to their online banking security questions. The bank has noticed an upswing in this type of fraud and would like to help educate our customers as to how this occurs, and what you can do to protect yourself or a loved one from such a scam.

Once a person enters their banking information into the online application, the unknown fraudster then enrolls in mobile banking on behalf of the applicant, submitting fraudulent checks for deposit through the bank’s mobile app. When the customer comes into the bank to receive their “pay day” funds, they are struck with returned checks that are fraudulent.

Customers applying for loans online that share their sensitive information are not taking into consideration that they have given scammers direct access to their checkbook, including the ability to issue checks from the bill pay feature of online banking.

It is never wise to share online banking credentials! In these cases, an applicant can unknowingly become a criminal suspect themselves as they are referred to as “money mules”, participating in moving money fraudulently. The applicant must then bear the burden of proving that they did not willingly engage in fraudulent activity often involving the police.

When enrolling in online banking, be sure to never share a banking ID, password, or security questions and answers with anyone. A reputable lender will never ask for that information. By following these guidelines, one can avoid a significant loss through a scam.

 

Using a HELOC to Pay Off High-Rate Debt. Is it a Good Idea?

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Homeowners might wonder whether it’s a good idea to tap their home equity, or the market value of the property minus what is still owed on it, to pay down other types of debt, especially high-interest credit card balances.

Homeowners might wonder whether it’s a good idea to tap their home equity, or the market value of the property minus what is still owed on it, to pay down other types of debt, especially high-interest credit card balances.

One way to do this, using a home equity line of credit, is growing in popularity — more than $120 billion in HELOCs were created in 2014, an increase of about 22% over the previous year.

How a HELOC works

A HELOC, or home equity line of credit, is a bit like a second mortgage since your home serves as the collateral for the loan. However, a HELOC is a form of revolving debt, like a charge account, in that you’re able to withdraw money up to an approved limit, using a card or check, repay it and draw it down again. Since it’s secured, a HELOC usually has a much lower interest rate than the average credit card or a personal loan. You pay interest only on the amount you take out, and what you pay is often tax-deductible* on HELOCs up to $100,000.

Most lenders limit how much of your home’s value you can borrow. If your house is appraised at $400,000, you could borrow as much as $320,000 on it, including the first mortgage, at an 80% debt-to-value cap. So if your mortgage balance is $250,000, your home equity is $150,000, but the maximum you could borrow on that would be $70,000.

If you have significant debt, say, on a credit card with a 15% interest rate, a HELOC might seem like an easy solution. You could save on interest costs and lower your monthly payments. But proceed carefully. Unless you’re certain you have a stable plan for keeping up your payments, you could be putting your home at risk as a short-term solution to a financial jam.

Fees and risks to consider

Before you go too far, find out what obtaining a HELOC from your lender would cost — it might be substantially more than taking out a personal loan, for instance. A HELOC might require an application fee, property title search, an appraisal and attorney fees and even points, like on a mortgage. Lenders might waive some of these costs, but some also charge annual fees and withdrawal fees.

Most HELOCs have variable rates, so your monthly payments could go up or down periodically. Ask your lender how often the rate can be adjusted, and by how much. Some financial institutions offer fixed-rate HELOCs, but they might have higher initial interest rates than adjustable-rate credit lines.

Suppose your income drops unexpectedly, say from a job loss. If you were to default on unsecured credit card debt, the issuer wouldn’t be able to take possession of your property. But default on a HELOC and the lender could cause you to lose your home.

Using a lower-rate HELOC to pay down high-rate debt can be a savvy financial move as long as you fully understand all the costs and risks and have a stable plan for keeping up with your repayments.

*Please consult your tax advisor for questions.

© Copyright 2015 NerdWallet, Inc. All Rights Reserved

Interested in applying for a HELOC or other kind of loan? We can help. Start the loan process here.

 

Financial Considerations Before Traveling Abroad

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Financial Considerations Before Traveling Abroad
The number one most important step to take is to notify your bank of your intended travel plans. Not doing so may result in the freezing of your debit card. Our clients’ security is a number one priority for us at F&M Bank, so if we see someone using your account outside of your normal activities, we are going to take precautions to protect you against fraud.

Traveling abroad can be full of excitement and fun, but it takes a decent amount of preparation.  It is important to research hotel ratings, the best price in airfare, and tips for packing appropriate attire; but don’t forget to make sure you make financial preparations as well.


There are many financial considerations to take into account before embarking on your trip.  You will need to consider security, foreign transaction fees, and exchange rates- and you will want a financial plan in place before take-off.

The number one most important step to take is to notify your bank of your intended travel plans.  Not doing so may result in the freezing of your debit card.  Our clients’ security is a number one priority for us at F&M Bank, so if we see someone using your account outside of your normal activities, we are going to take precautions to protect you against fraud.  Simply call your bank branch and your Customer Service Representative will be glad to assist you by putting an alert of your travel plans on your account to avoid any complications.

At F&M Bank, we do not charge additional fees for using your debit card internationally.  However, you will likely be charged foreign transaction fees (usually ranging from 1% to 5%) and ATM fees by the vendor you are using to withdraw funds.  Additionally, many foreign ATMs only allow PIN transactions, so make sure you have your PIN number handy before traveling.  

Here are some other suggestions to keep in mind:  

•    Travel with at least two forms of payment.  If something goes wrong with one, you will want back up.
•    Take photocopies of all of your important documents including your passport, credit cards, debit cards, birth certificate and driver’s license and store them in a different location than the documents themselves.  This way, if something happens to the originals you will be able to prove your identity. 
•    Check your health insurance to make sure you will be covered while you are traveling.  If not, consider purchasing a rider. 
•    The most expensive place to purchase currency is in the airport at your destination.  Consider exchanging money through an international bank prior to departure.
 

If we can answer any questions to help you prepare for your next travel adventure, please contact us.  We are always here to help as Your Community Bank.  Bon voyage!