Financial Education

Romance scams have become an alarming trend, with scammers preying on individuals seeking love and companionship. These scammers create fake online profiles to develop emotional connections with victims, eventually manipulating them into sending money or sharing sensitive information.

How Do Romance Scams Work?

Scammers typically start by striking up a conversation on dating websites, social media, or apps. They often move quickly, creating a sense of urgency or emotional connection to convince victims that they are trustworthy. Once the scammer has gained their victim’s trust, they will fabricate stories about financial hardship, emergencies, or even fake investments to ask for money.

Magnolia Bank Pro Tip: Learn more about protecting yourself from Romance Scams in our latest episode of Finance 101, here. 

How to Protect Yourself:

1. Be Cautious with Online Relationships: If someone you've just met online is professing love or affection quickly, proceed with caution. Scammers often rush into relationships to create an emotional bond.
2. Watch Out for Money Requests: Never send money or gifts to someone you've met online, no matter how convincing their story might seem. 
3. Verify Their Identity: Scammers often use fake photos or names. Conduct reverse image searches or ask for video calls to confirm their identity before moving forward.
4. Avoid Sharing Personal Information: Never disclose personal details like your bank account number, passwords, or full name to someone online.
5. Report Suspicious Activity: If you suspect you’re being targeted by a romance scammer, report the incident to your bank and local authorities immediately. The faster you act, the better your chances of stopping a scam before it causes any damage.

Remember, scammers are skilled at manipulation, but you can protect yourself by staying alert and trusting your instincts. If something doesn’t feel right, it probably isn’t. Stay safe and protect your heart AND your wallet!

In today's digital age, identity theft has become an increasingly common and distressing reality for many individuals. Discovering that your personal information has been compromised can evoke feelings of violation and helplessness. However, it's crucial to remember that you have the power to regain control. This blog post will guide you through the essential steps to take if you find yourself a victim of identity theft, from securing your accounts to notifying the appropriate authorities. By following these actionable steps, you'll be better equipped to minimize the impact of identity theft on your life and protect your future financial and personal well-being. Read on to learn more about the steps you should take following a case of identity theft.

STEP ONE: Contact companies and update your passwords.
When you discover that you have been a victim of fraud, you should contact Magnolia Bank and any other companies with accounts that may be compromised immediately. To report fraud on your Magnolia Bank account, please call 270-358-3111.

After alerting us, you should update the passwords for your online/mobile banking accounts, and any other critical accounts. Be sure to use strong, unique passwords and consider enabling two-factor authentication (2FA) for an extra layer of security.

STEP TWO: Place a free fraud alert and get your credit reports.
Place a free, one-year fraud alert by contacting one of the three credit bureaus. The company that you contact is required to inform the other two credit bureaus (each will send a confirmation letter).

• Experian.com/help | 888-397-3742
• TransUnion.com/credit-help | 888-909-8872
• Equifax.com | 800-685-1111

When you have an alert on your report, a business must verify your identity before it issues new credit in your name. You can renew the fraud alert after one year if necessary. You may also check your reports every week for free at AnnualCreditReport.com. This can help you identify any new fraudulent activity quickly.

3. File a report to the Federal Trade Commission (FTC).
Complete the online form at IdentityTheft.gov/assistant or call 877-438-4338. Include as many details as possible. Based on the information provided, you’ll receive an Identity Theft Report and recovery plan (don’t forget to download and save this file for later use). This report proves to businesses that someone stole your identity and also guarantees you certain rights.

4. File a police report.
Be sure to bring a government-issued ID (with a photo), proof of your address (mortgage statement, rental agreement, utility bill, etc.), and any other proof you have of the theft (bills, IRS notices, etc.). Don’t forget to ask for a copy of the police report for your records.

5. Monitor your accounts for additional fraudulent activity.
Identity theft recovery can take time, so continue monitoring your accounts, credit, and personal information to ensure no further unauthorized activity occurs. Regularly check your bank accounts, credit card statements, and credit reports for any unauthorized activity. If you find anything suspicious, report it immediately.

Magnolia Bank Pro Tip: Download and share this Magnolia Bank Identity Theft document for additional information.

We know that identity theft is a scary and a serious situation, but knowing the steps to protect and recover your information can give you peace of mind. Magnolia Bank is here for you if you ever find yourself navigating this precarious situation. While we hope you never find yourself the victim of identity theft, rest assured that we’re prepared to help - the Magnolia Way.

In today’s market, you can purchase almost anything with just the click of a button! At the same time, you could also be one click away from the latest scam attempt. While online shopping is convenient, it also comes with risks. Here are 10 simple tips to help keep your bank account secure while you shop online:

Magnolia Bank Pro Tip:Check out our latest Finance 101 video with Eric & Joe Online Shopping and Security - for more tips!

1. Use Strong Passwords: Always create strong, unique passwords for your online shopping accounts. Avoid using easily guessable information like your name or birthday. Make it difficult for someone to hack your account!
2. Enable Two-Factor Authentication (2FA): Whenever possible, enable 2FA on your shopping and banking accounts. This adds an extra layer of security, requiring a second form of identification or answering security questions to prove your identity.
3. Shop on Secure Websites: Only shop on websites that start with "https://" and have a padlock symbol in the address bar. These are signs that the site is secure.
4. Be Cautious of Public Wi-Fi: Avoid entering your banking information or making purchases over public Wi-Fi. If you must, use a Virtual Private Network (VPN) to secure your connection.
5. Monitor Your Bank Statements: Regularly check your bank statements for any unauthorized transactions. If you notice anything suspicious, report it to your bank immediately.
6. Avoid Phishing Scams: Be wary of emails or messages that ask for your personal information or direct you to a website to log in. Always go directly to the official website instead of clicking on links in emails.
7. Use Credit Over Debit: When possible, use a credit card for online purchases. Credit cards often offer better fraud protection than debit cards.
8. Keep Your Devices Updated: Ensure your computer, smartphone, and other devices are updated with the latest security patches. This helps protect you from new vulnerabilities.
9. Log Out After Shopping: Always log out of your accounts after completing your purchases, especially on shared or public devices.
10. Trust Your Instincts: If a deal seems too good to be true, it probably is. Stick to reputable sites and trust your gut.

Following these tips can help protect your personal and financial information, making your online shopping experience safer and more secure. Happy shopping!

When you're buying a home, you often hear the term "down payment." But what exactly does it mean? A down payment is an initial, upfront payment you make when purchasing a big-ticket item, like a house or a vehicle.

Why is a Down Payment Important?

1. Reduces Loan Amount: The down payment reduces the total amount you need to borrow. If you put down 20% on a $300,000 home, you only need a loan for $240,000.
2. Shows Lender Your Commitment: Lenders view down payments as a sign of your investment in the property. A higher down payment often means better loan terms.
3. Avoids Private Mortgage Insurance (PMI): If your down payment is less than 20% of the home's price, you might have to pay for PMI, which protects the lender if you can’t make your payments.

How Much Should You Put Down?
The standard down payment is usually around 20%, but this can vary. Some loans allow for much smaller down payments, sometimes as low as 3%. However, larger down payments can save you money in the long run because you won’t be paying as much interest.

Magnolia Bank Pro Tip:Magnolia Bank Pro Tip: Use one of the Magnolia Bank Loan Calculators to help plan your future purchases. Visit: magnoliabank.com/calculators/

Saving for a Down Payment
Saving for a down payment probably won’t happen overnight: it takes time and discipline. You can make the process easier by creating a budget, cutting unnecessary expenses, and setting up a separate savings account specifically for your down payment fund.
In summary, a down payment is a crucial part of the home-buying process. It can affect your loan amount, interest rate, and whether you'll need to pay for PMI. Start planning and saving early to make your home purchase as smooth as possible! To learn more about Magnolia Bank’s mortgage products, please call or stop by one of our banking centers to speak with one of our knowledgeable loan officers.

Magnolia Bank Pro Tip:To learn how we’re making the mortgage lending process as stress free as possible, visit https://youtu.be/lJ_PKR4GQA4?si=46Sh6_K-ORK9-jhf

If you’re deciding to make a big purchase and require a loan, it is important to first understand the loan lingo and terms to help you make the best financial decision. In this blog, we are setting you up for success by exploring the options of secured and unsecured loans.

Secured Loans: A secured loan requires the borrower to pledge an asset as collateral. To receive a secured loan, you would need an item for the bank to collect if you default (or stop making payments) on your loan. The item could be a car, savings account, house, or any valuable property. Basically, you are proving your credibility to the lender by pledging your asset. This might sound scary or intimidating, but there are several pros to acquiring this kind of loan.

Pros:

• Lower Interest Rates – Since the lender has collateral, typically interest rates are lower.
• Higher Borrowing Limits – You can usually borrow more because it is backed by the asset.
• Easier Access – For borrowers with lower credit scores.

There are also a few possible cons to consider with a secured loan:

Cons:

• Risk of Asset Loss – Defaulting on a secured loan can result in losing your pledged collateral.
• Longer Approval Process – Valuation of the asset can extend the approval time.

Magnolia Bank Pro Tip: Speak with a Magnolia Bank Loan Officer to learn more about the lending options provided through Magnolia Bank.

Unsecured Loans: An unsecured loan is a loan that is approved based on the borrower’s creditworthiness and financial history. You don’t need to provide a collateral item to acquire this type of loan. Borrowers often use this type of loan for debt consolidation, home improvements, or unexpected expenses. Credit cards are also a type of unsecured loan. Let’s explore the pros and cons of an unsecured loan.

Pros:

• No Collateral Required – There is no risk of losing personal assets if you default on this loan.
• Quicker Approval Process – The absence of collateral simplifies the application and approval process on the borrower’s end.
• Easier Access – For borrowers with lower credit scores.

Cons:

• Higher Interest Rates – To compensate for the higher risk for the lender, these loans typically have higher interest rates.
• Lower Borrowing Limits – Without collateral, the amount you can borrow is typically lower than a secured loan.
• Credit Score Dependent – Your ability to get approved or get a favorable interest rate depends on your credit score.

Magnolia Bank Pro Tip: Use one of the Magnolia Bank Loan Calculators to help plan your future purchases. Visit: magnoliabank.com/calculators/

By understanding the nature of secure and unsecured loans, you can make informed decisions that best meet your financial needs and circumstances. Carefully considering the advantages and disadvantages of each can help you make a decision that aligns with your financial goals and safeguards your future.

One last, Magnolia Bank Pro Tip: Check out our Finance 101 videos for more information about topics like secured and unsecured loans. Visit: magnoliabank.com/financial-education/ and click on the Finance 101 tab!

Do things seem more expensive to you now than they were before? You are not alone! Inflation is the sneaky culprit behind those climbing price tags. In this blog, we’re diving into the mystery of inflation and how you can help limit the impact on your bank account.

To put it simply, inflation happens when prices for goods and services rise over time. There are a couple of reasons that inflation may occur

1. Supply and Demand: When demand is high and supply is low, prices go up. This can happen during times of year when stores are busier than usual, or when there are shortages in materials and/or products.
2. Monetary Policy: Federal banks control inflation by managing interest rates and the supply of money. When they print more money or lower interest rates, it can lead to inflation.
3. Cost-push Effect: To put it simply, if it costs more to produce goods as a result of higher wages or raw material prices, then companies must also raise prices to cover their expenses.
4. External Factors: Geopolitical tensions or natural disasters can disrupt supply chains and cause shortages, which can drive prices up.

With so many factors affecting inflation, sometimes it can be difficult to pinpoint the exact cause influencing price increases. So what can be done when you notice these higher prices are taking a toll on your wallet? Below are a few tips to help!

• Adjust Your Monthly Budget: Now is a great time to review your budget to ensure your expenses are covered. You might need to adjust your allocated funds to cover monthly expenses, and that’s okay! Budgets will ebb and flow over time to fit your situation.
  

  Magnolia Bank Pro Tip: Check out our earlier blog post, “Creating a Budget – The Magnolia Way,” for more information about creating a budget.

• Pay Down Debt: Prioritize making consistent payments to your loans even during inflation periods. Trying to play catch up with your payments can be stressful, especially when prices are high. When choosing which debt to pay down first, prioritize lines of credit with variable interest rates to avoid paying more over time than necessary. Remember, as inflation rises, so do interest rates!

Maintain an Emergency Fund: When creating or adjusting your monthly budget, be sure to include a fund for emergencies. Contributing just a small amount every week adds up over time and helps provide peace of mind as prices rise.

Magnolia Bank Pro Tip: Learn how you can save more with Magnolia Bank’s Swipe-N-Save tool, and check out this episode of Finance 101 with Eric & Joe.

In an era where convenience and commerce are connected, online shopping has become a huge part of our lives. However, with convenience comes the responsibility of safeguarding your financial information. In this blog post, we'll explore essential tips to ensure a secure online shopping experience, so you can shop with confidence.

1. Trustworthy Sites Matter
   • When making online purchases, it's crucial to stick to trusted and reputable sites. Ensure that the website is secure and reliable. Only conduct transactions on well-established platforms with a proven track record of security. Also, never click on an advertisement directly. It is always better to go directly to the website and ensure that it is legitimate, secure and reliable.
2. The Lock Symbol
   • Before you proceed with any online purchase, look for the secure lock symbol in the URL bar. This symbol indicates that the website is encrypted, providing an added layer of protection for your personal and financial information. Always double-check for this symbol before entering any sensitive data.

Magnolia Bank Pro Tip: Always double check for typos in a website URL. Sometimes fake sites can impersonate real ones by including minor changes in the URL.

3. Secure WiFi Connections
   • Avoid making online purchases while connected to public WiFi networks, as they can leave you vulnerable to hackers. Opt for a secure and password-protected connection to ensure a safer online shopping experience.
4. Beware of "Free Trials" and Social Media Ads
   • Free trials and enticing offers on social media can sometimes lead to unexpected charges. Read the fine print carefully before participating in any trials, and be cautious about sharing your financial information on social platforms. If an offer seems too good to be true, it probably is. Stay informed and protect your wallet.
5. Guard Your Debit Card and PIN
   • Your debit card and PIN are like keys to your financial kingdom. Never give them to someone else to use, as you will be held responsible for any purchases made. Be cautious and only use your card for transactions that you personally authorize. And remember, Magnolia Bank would never ask you for your PIN.

Magnolia Bank Pro Tip: Review your transaction history and monthly bank statements often. If you believe someone has made unauthorized purchases with your debit card, call us immediately to prevent further spending.

At Magnolia Bank, your financial security is our top priority. By following these simple tips, you can protect your financial information and potentially save thousands of dollars.

Tracking your spending can seem like a chore, but it doesn’t have to be! In this blog post, we’ll share a few simple and effective tips to help you track your spending and achieve your financial goals.

1. Create, use, and analyze your monthly budget. Start by outlining your income (how much money you bring in) and your expenses (rent, bills, payments, groceries, etc.). Set aside an amount for your savings each month and use the remaining amount for your wants and recreational activities.
   

   Magnolia Bank Pro Tip: Check out our earlier blog post, Creating a Budget – The Magnolia Way, for more information about creating a budget.

2. Set a consistent time to do a regular review of your finances. Use your bank statement or the Magnolia Mobile banking app to review your spending. This habit can help you spot trends, identify areas to cut back, and stay on track with your goals.
3. Make a written record of your spending. Save your receipts or make notes of all of your purchases (no matter how big or small) in a notebook or on your phone. This habit can help you accurately keep track of your spending by including cash, debit, and credit purchases. Plus, each time you find yourself writing down your purchase you can reflect on your spending.
4. Use cash envelopes to set limits for yourself. If you have a hard time limiting impulse buys, try dividing cash into separate envelopes for different spending categories to ensure that you stay within your budget. This habit can help you limit your spending and know exactly how much you spend in each category for the month.
   

   Magnolia Bank Pro Tip: Creating a budget can also help you save more each month. Learn more about the savings products offered by Magnolia Bank in this episode of Finance 101 with Eric & Joe.

   Tracking your spending is a lot like anything else: you have to find what works best for you and stick with it! It will take intentional practice to master your finances, but the journey toward financial freedom begins with effective tracking and habits. And as always, your Magnolia Bank team is ready to help you whenever we can!

At Magnolia Bank, we believe that achieving your financial goals should be straightforward and rewarding. To support your savings journey, we offer a range of accounts and tools that make saving easier, more efficient, and more effective. In this blog, we’ll explore those products that can help you take control of your finances as you work towards a brighter financial future.

Savings Accounts

Did you know that Magnolia Bank offers three different personal savings account options? We have account solutions to benefit all life stages for our customers.

Traditional Savings Account

Traditional savings accounts are known for their stability. They're backed by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per depositor, providing you with peace of mind knowing your money is secure. With a Traditional Savings Account, you'll have access to your funds when you need them and your balance will earn a small amount of interest, making it an ideal place for your emergency fund or short-term savings.

Young Savers Account

Our Young Savers Account was designed with children in mind. This account offers a savings solution for children opening their first account and is available to minors with custodial access. This account is a great option for teaching and learning money management skills as there are no minimum daily balance requirements and no maintenance fees.

Money Market Account

A money market account is a dynamic tool that combines attractive interest rates with accessibility and security. Like a Traditional Savings Account, Money Market Accounts are backed by the FDIC, but it is a premium account solution that earns greater interest as you save. As your balance grows, your interest rate increases, incentivizing you to save even more!

Savings Products

We also offer several savings products to help you create and maintain a solid financial future.

Certificate of Deposit (CD)

A CD is a time-based savings option. It's a fixed-term deposit that earns interest over a specific period, ranging from a few months to several years. When you open a CD, you lock in an interest rate that remains constant throughout the CD's term. CDs come with various term lengths, allowing you to choose a timeline that aligns with your financial goals. Short-term CDs offer quicker access to funds, while longer-term CDs typically yield higher interest rates.

Swipe-N-Save

Swipe-N-Save is a feature offered by Magnolia Bank that allows you to round up each debit card purchase to the nearest dollar - with the difference automatically transferred to your savings account or other designated account. Over time those small transfers add up, helping you save more with ease.

Magnolia Bank Pro Tip: Learn more about saving with Magnolia Bank in this episode of Finance 101 with Eric & Joe.

Individualized Retirement Account (IRA)

An IRA is a tax-advantaged investment option designed to help you save and invest for retirement. Traditional and Roth IRAs are the most common types of IRAs. They differ in tax treatment, contribution rules, and withdrawal strategies. Understanding the nuances of each can help you understand which option is best for you. IRAs offer flexibility in choosing how to invest your funds (stocks, mutual funds, bonds, etc.). This control allows you to tailor your investments to meet your individual preferences and needs: your investment, your way!

Certificate of Deposit Account Registry Service (CDARS)

CDARS is a service that allows you to invest in CDs while benefiting from the FDIC insurance coverage on deposits up to $50 million through Magnolia Bank. These accounts are best for those customers making large deposits with concerns about FDIC coverage. CDARS can be a valuable cash management and long-term investment tool. With each deposit, we place your funds into CDs issued by other banks in the same network – in increments of less than the standard FDIC insurance maximum – so that both principal and interest are eligible for complete FDIC protection. As a result, you can receive coverage from many banks while working with just one – allowing safe, convenient, and impactful return on your investments.
Our suite of savings accounts and products are designed to empower you on your journey toward financial success. By using these tools, you can make saving a seamless part of your life and watch your savings grow over time. We’re excited to be your partner on your savings adventure!

It’s true that identity theft can wreak havoc on your financial stability and personal well-being. However, there are several ways you can fight back against hackers and cyber-attackers. Here are our top ten tips for safeguarding your identity. 

1. Always keep your personal information secure.
   Keep your personal and financial information confidential. Be sure to shred important documents before throwing them away and keep information locked in a secure place. Be cautious when sharing your data online, and be sure to only use secure and verified websites. 
2. Choose your passwords wisely.
   It might be tempting to use the same password for all of your accounts, however this opens the door for hackers. When creating passwords, incorporate letters (upper and lower case), numbers, and special characters to make them harder to guess. 
3. Use Multi-Factor Authentication whenever possible.
   Multi-Factor Authentication (MFA) requires two or more verification methods to access your account, such as a combination of your password, security questions or verification code to you via email or text. MFA adds an extra layer of protection to your account. 
4. Stay informed. 
   Take the time to educate yourself about common scams like phishing emails.

   Magnolia Bank Pro Tip: Check out our last blog post, Identifying Online Scams, for more information about common online scams.

5. Regularly monitor your accounts.
   Make a habit of reviewing your bank statements, credit reports, and online accounts regularly and thoroughly. This can help you catch possible fraudulent activity sooner and limit the loss. 
6. Always use caution online.
   Avoid clicking or downloading attachments or links from unknown sources and avoid sharing personal or financial information over email or social media. Always verify the legitimacy of the website before entering sensitive information. Does the website have a padlock icon beside the web address? If so, then the connection is secure. Are there any minor typos in the web address? Hackers can create duplicate web pages that look like the real thing. Typos are a common giveaway. 
7. Protect your devices.
   Use software, app and operating system updates to keep your security features up to date. You can also install antivirus or malware software for an extra layer of protection. 
8. Secure your mail.
   Mail theft might be considered an “old-school” way to obtain information, but it still happens regularly. Be sure to retrieve mail from your mailbox promptly and consider using a PO Box if necessary. . 
9. Analyze before you respond.
   Scammers and hackers can play on your emotions to rush you into giving out your information, so be sure to stop and analyze the message before you respond. Who is this message from? What are they asking for and why? If they request action immediately, it could be a scam. 
10. Be skeptical of requests for information.
    Legitimate institutions will not ask for sensitive information via phone, email, or text. If you’re unsure, always contact the organization directly using official contact details - not the contact method provided via the suspicious email, text, etc.  

Magnolia Bank Pro Tip: When in doubt, stop by a Magnolia Banking Center or contact our staff to verify if a request is legitimate.

Your identity is one of your most valuable assets and Magnolia Bank is dedicated to your financial security! By practicing these security measures, you can reduce the risk of becoming the victim of identity theft and/or fraud. 

Magnolia Bank Pro Tip: Learn more about Identity theft from our latest Finance 101 video with Eric & Joe here.

In a world full of technologies, it shouldn’t come as a surprise that there are both pros and cons to our digital age. One of the biggest cons is dealing with online scams. Fortunately, you have resources (like this blog) to help you spot these scams. In this blog post, we’ll explore the most common types of online scams and ways to protect yourself from each type.

1. Phishing Scams: These scams occur when a hacker sends an email or text message that looks like it could be from a well-known company. The message might ask you to click a link or reply with personal information to verify your account. Hackers will either use the information you have provided them to access your account or sell your information to another party. Phishing scams play on your emotions - offering a deal of a lifetime or informing you that something is wrong with one of your accounts. They also use company logos and formatting to make you think it’s a legitimate message.
   Ways to Protect Yourself from Phishing
   
   • Protect your computer and phone by updating your software regularly. These updates can make it harder for phishing scams to come through.
   • Use multi-factor authentication whenever possible. Multi-factor authentication (answering a security question or typing in a code sent to your phone/email) makes it harder for scammers to log in to your accounts if they do get your username and password.
   • Verify a website before entering any personal or financial information. Ensure that the website's URL begins with "https://" and contains a padlock symbol, indicating a secure connection. Additionally, double-check the web address for minor variations or misspellings that scammers might use to deceive you.
   • When in doubt, ignore the message. If you suspect that something might actually be wrong with your account, visit the business in-person or call the customer service number provided on their verified website.
   
   

   Pro Tip: Magnolia Bank will never ask for your personal information via email, text, or link. If you receive a suspicious message, contact a Magnolia Banking Center to ensure all is well with your account.

2. Imposter Scams: Popular on social media, these scammers will often make duplicate social media accounts impersonating your loved one or friend, or complete stranger. The fake account might send messages that contain viruses or malware once opened. Sometimes, these scammers will send messages asking for money or additional personal information from you.
   Ways to Protect Yourself from Imposter Scams
   • Call your loved one to verify the new account before you accept the message or friend request.
   • When in doubt, ignore the message or report as spam. Social media platforms have reports that you can file when you believe something is fake or harmful.
3. Too Good To Be True Scams: You might receive a message that says you’ve won an online contest or you are being sent a special offer for a product or service. Sometimes, scammers will even go as far as telling you about a new job opportunity that you’re being recruited for. Never share your financial information (like your debit card number or account number) to claim your prize or learn more.
   Ways to Protect Yourself from Too Good To Be True Scams
   • Guard your personal information like gold. Refrain from sharing personal/financial information over the internet.
   • Trust your instincts. Scammers often use high pressure tactics to rush you into making a hasty decision.
   • When in doubt, ignore the message or report it as spam.
   
   

   No matter the type of scam, there are ways to protect yourself. Being alert and aware of the different types of scams is the first step. You should also remain diligent by monitoring your accounts regularly to catch fraudulent activity before it gets out of hand.

   Pro Tip: Suspect fraud on your account after business hours? Call 1.800.472.3272 to report your card lost or stolen, and contact your banking center the following business day to report suspicious activity on your account.

   As your trusted banking partner, Magnolia Bank is committed to providing you with the tools and information you need to protect yourself against online scams. By following these guidelines and maintaining a proactive approach, you'll be better prepared to navigate the digital landscape securely and confidently.

Every customer with an active checking account at Magnolia Bank receives a bank statement each month. Your bank statements may come in the mail as a paper statement, or if enrolled to receive e-statements, accessed digitally via online banking. Despite the different viewing options, the content remains the same: your bank statement provides valuable information about your financial records, which can help you take control of your finances and make informed decisions. 

Pro Tip: With Magnolia Bank, you can customize how you receive your bank statements: paper copies, digital, or both! To receive digital copies of your statements, sign up for e-statement by enrolling in online banking. Visit: magnoliabank.com/online-banking/ to learn more. 

At a first glance, a bank statement may seem overwhelming. But you can easily find the information that you are looking for by better understanding each of the different sections: 

1. Header Information:At the top of your bank statement, you'll find important details like your account number, account holder's name, statement period, and the date the statement was issued.
   
2. Beginning and Ending Balances: Your bank statements will display your account's beginning balance (the amount you had at the start of the statement period) and the ending balance (the amount you have at the end of the period). These balances provide an overview of how your account's funds have changed during that time. 
3. Transactions: The heart of the bank statement is the list of transactions. Transactions can include deposits, withdrawals, transfers, purchases, and more. Each transaction entry should include the date, description of the transaction, and the amount. These entries help you track how money flows in and out of your account. 
   

   For some transactions, additional information might be provided. For instance, if you used your debit card for a purchase, the statement might show the merchant's name and location. This helps you identify where your money was spent and can help you catch any instances of fraud.

4. Debits and Credits: On your bank statement, debits represent money leaving your account (withdrawals, purchases), while credits represent money coming into your account (deposits, transfers from others). 
5. Fees and Charges: Your bank statement may also list any fees or charges associated with your account. Where applicable, these can include monthly maintenance fees, overdraft charges, or ATM fees. 
6. Check Images: If you've written checks, your bank statement might include images of the checks you've written. This can be particularly useful for verifying payments you've made.
7. Running Balance: Your bank statements include a running balance column that shows your account balance after each transaction. This helps you keep track of your available funds at any point during the statement period.

So, you have all of this information - now what? Your bank statement can help you manage and organize your finances so be sure to keep it! As a best practice, you should review your bank statement each month to check for inaccuracies, mistakes, or possible fraud. The earlier you catch these issues, the quicker they can be resolved. And remember, bank statements should always be stored in a safe place where others can’t access your financial information.

Pro Tip: To learn more about incidents of identity theft and how to avoid it, check out our latest Finance 101 video with Eric and Joe. 

Let’s not forget, your bank statement can also be a powerful tool for creating and maintaining your monthly budget. By categorizing your expenses and income, you can gain insights into your financial habits. Reviewing your statement also enables you to set realistic savings goals and plan for major expenses based on your spending patterns. 

Your bank statement can help you with other financial situations, too, such as tax preparation, loan/credit applications, proof of payment for rent or utilities - even legal disputes. With your bank statements, you have a clear record of your income and expenses, making it easier to report and reconcile your financial information to the necessary parties. 

Now that you know how to read and use your bank statement effectively, you can be empowered to take control of your finances, safeguard your money, and make well-informed financial decisions. Need help accessing your statements or have additional questions? Our Magnolia Bank staff can help. Just contact your local banking center. 

In today’s digital age, mobile banking has become a convenient and efficient way to manage your finances anytime and anywhere, with just a few taps of your fingers on your smartphone. To make the most of this powerful tool, it's important to familiarize yourself with some tips and best practices for mobile banking. In this blog post, we'll explore key strategies that will help you unlock the potential of mobile banking while keeping your information safe.

As a Magnolia Bank customer, you have access to our free Magnolia Mobile Banking App, which allows you to access a variety of banking services from the comfort of your home or while you are on the go. Through the app, you are able to securely monitor your account balances and spending, deposit checks, transfer funds, and pay bills.

Pro Tip: To access mobile banking, you must be enrolled in online banking. Visit our website: magnoliabank.com/mobile-banking for enrollment instructions and to easily download the app on your device.

Here are some of the top reasons why you should take advantage of mobile banking:

Real-Time Alerts and Access to Your Accounts
You can receive daily alerts for transactions, balance updates, bill due dates, and other important information through mobile banking. These instant notifications help you stay informed and maintain a close watch on your financial transactions at all times. Not to mention, the ability to view and analyze your spending patterns on the go enables you to make informed decisions and improve your financial management skills.

Utilizing the Mobile Deposit Feature
With this feature, you can deposit checks conveniently by simply taking a couple of photos with your smartphone camera. Mobile Deposits are quick, secure, and reduce the need to visit the bank in-person for routine deposits.

Increased Customer Support
Mobile banking allows for increased customer support features, allowing you to reach out to the bank directly from the app. You can initiate secure messages and make phone calls for assistance.

Increased Security Measures
Through the use of features like multi-factor authentication and biometric screening (fingerprint or facial recognition), mobile banking ensures the privacy and security of your transactions. Also, if you believe your account has been compromised, you can easily contact your bank to disable access to your accounts.

With great power comes great responsibility and just like with any other technology, there are a few safety precautions that can help optimize your mobile banking experience. Check out these tips to keep your accounts secure when utilizing mobile banking.

1. Choose strong and unique passwords:
   Avoid using commonly guessed passwords or passwords with your personal information (name, birth date, address, etc.)
2. Enable two-factor authentication
   Two-factor authentication means you will enter your username and password then a second form of authentication will be used to access your account such as facial recognition.



Pro Tip: Pro Tip: You can set up Face ID on the Magnolia Bank app. Toggle the Enable Face ID button when you log into the app to get started.

3. Check that your network is secure
   Take caution when using public Wi-Fi to access your banking information as hackers can access unsecure connections.
4. Sign up for banking alerts
   Enabling mobile or online banking alerts can keep you informed about your account activity and can help you catch suspicious activity early.
5. Be wary of phishing scams
   Phishing scams usually involve tricking you into giving up your personal information and they frequently involve fake text messages or emails. The message might ask you to click on a link to reset your password.

Mobile banking is a powerful tool to help you control and manage your finances, and it’s another service that we offer with our customers’ needs in mind. To learn more or to get started, visit magnoliabank.com/mobile-banking/

A credit score is a three-digit number that represents your creditworthiness in the eyes of a lender (aka a snapshot of your financial reliability). It is an assessment based on your credit history, the types of credit used, and new credit applications. The score typically ranges from 300 to 850, and it helps lenders and other entities evaluate the risk of giving you credit. Your score is not permanently fixed; based on your financial decisions and borrowing habits, your score can go up or down on the scale.

How a Credit Score is Calculated
Credit scores are typically calculated using a mathematical formula called a scoring model. Scoring models may have different factors included in the calculation based on the loan or type of credit that you are applying for. Typically, scoring models include the following factors:

Let’s look at an example: You’re interested in buying a new car. The car will cost $20,000 and you have $5,000 in your savings account to place as a down payment. Based on those figures, the lending institution has created an auto loan for you with the following terms:

• Your bill-paying history
• Your current unpaid debt
• The number of different loan accounts that you have
• Length of your loan accounts
• How much of your available credit you’re using
• New applications for credit
• Collection, a foreclosure, or a bankruptcy history

How a Credit Score Can Impact Your Life

Your credit score holds importance for your financial future, so it is important to keep it in mind when making decisions. Here are a few ways that your credit score can impact your life:

1. Your access to credit: Your access to credit determines how easily you can access loans and lines of credit. The better your credit score, the more borrowing power that you have.
2. Your interest rates and loan terms: Having a strong credit score demonstrates responsible financial behavior, making you less risky in the eyes of a lender. As a result, you may be eligible for lower interest rates and more favorable loan terms.
3. Rental and housing opportunities: Landlords and property managers can check a potential tenant’s credit score to assess their ability and likelihood of paying their rent on time. A lower score could limit your options or require a larger security deposit.

Building a good credit score isn’t necessarily hard; however, it does require good spending habits and financial discipline. You can raise your credit score by paying your loans back on time and making up missed or late payments as soon as possible. Also, only apply for credit that you need and avoid using the maximum amount of credit that you are allotted on a line of credit. If you are just beginning to build credit, remember that paying back your loans in a responsible manner, will positively impact your score!

Lesser-Known Factors that Affect Your Credit Score

Making smart financial decisions and checking your credit report at least once a year for errors are some of the best ways to maintain healthy credit. But did you know that there are other lesser-known factors that can affect your credit score?

Pro Tip: Did you know that you’re entitled to a free copy of your credit report every 12 months from each credit reporting company. Visit magnoliabank.com and follow the link under the “Identity Theft” tab on the Financial Education page to access your FREE credit report.

1. Requesting a credit limit increase: When you decide to extend your line of credit, it’s important to know that the lender might perform a hard inquiry to get the request approved.
2. Closing out unused credit card accounts: Even when you’ve paid off a credit card balance, you shouldn’t jump at the chance to close accounts entirely. Keep old, unused accounts open, because they show valuable history and improve your credit utilization ratio.
3. Using in-house financing: Whether they’re buying furniture or a new television, it can be tempting to take advantage of an attractive loan offer directly from the vendor. These applications will show up on the credit report and you may end up paying much more than anticipated if you miss a payment.
4. Maxing out credit cards: Using up all of your available credit will affect your credit score. Maxing out one or more credit cards could be a red flag that you’re in over your head financially. This, in turn, lowers your credit score.
5. Eliminating all types of debt: It’s a good idea to hold on to at least one loan and one credit card account, even if you’re striving to be debt free. You’lll need some sort of active credit history to maintain a healthy credit score.

Pro Tip: To learn more about building credit, check out this episode of Finance 101 with Eric & Joe.

Don’t let the task of building and maintaining a good credit score intimidate you. Understanding the factors that contribute to your credit score and taking proactive steps to maintain good credit history can help pave the way toward a more stable financial future.

Still have questions? Contact your Magnolia Bank representative today for additional support or to explore lending options.

Several factors should be taken into account when borrowing money, and one of the biggest considerations is the interest rate. In this blog, you’ll learn the ins and outs of finding the best interest rate, so you’re prepared to shop confidently for your next car, house, or credit card.

What is an Interest Rate?
To put it simply, interest is the price you pay to borrow money. When you borrow money, you generally must pay back the original amount you borrowed, plus a certain percentage of the loan amount (aka the interest). But there are some exceptions: if you pay your credit card balance in full every month, or you have a promotional 0% interest rate, then you will not pay interest. Interest rates aren’t explicitly set by the Federal Reserve; however, their guidance and direction does impact them.

Let’s look at an example: You’re interested in buying a new car. The car will cost $20,000 and you have $5,000 in your savings account to place as a down payment. Based on those figures, the lending institution has created an auto loan for you with the following terms:

Magnolia Bank Pro Tip: Visit our website to access various loan calculators and cost comparison tools to help you find the best loan solution.

Financial institutions can also pay you interest over time for the funds you invest. Interest is often paid on accounts such as Certificates of Deposit, Savings, and Money Market accounts, among others. Click here to learn more about the interest bearing accounts offered at Magnolia Bank.

Interest Rate Terms to Know
Depending on the type of loan (car, mortgage, student loan, personal loan, etc.), there are different terms for interest rates that go along with your loan.

Fixed Interest Rates: A fixed interest rate means that your principal balance payment and interest rate will stay the same throughout your repayment period. A fixed interest rate might be preferred if you are planning to pay the loan off over a longer period of time or if you expect rates to rise in the future.

Adjustable Interest Rate: An adjustable interest rate means that your principal balance payment and interest rate can decrease or increase based on time. An adjustable interest rate might be preferred if you are planning to pay off the loan in a shorter amount of time or if you expect rates to remain stable or decrease over time.

Simple Interest: If you have a simple interest loan, then your interest is only calculated based on your principal amount (or how much you originally borrowed).

Compound Interest: Compound interest builds over the term of the loan or investment. It is a little more complicated to calculate than simple interest since there are multiple factors that go into it (ex. interest rate per compounding periods, number of compounding periods, etc.).

APR (Annual Performance Rate): An APR reveals the amount of interest you will pay over the course of a year, along with other fees and charges associated with the loan. It also takes into consideration the principal balance of the loan, unlike an interest rate. An interest rate is the monthly rate; whereas, an APR is the yearly rate. It can be helpful to compare both the Interest Rate and the APR to get a true estimate of what you will be repaying on your loan.

Magnolia Bank Pro Tip: Be sure to read the fine print of your loan documents and ask questions if you don’t understand a term or condition before agreeing to the loan. Our Magnolia Bank staff are always here to help if you need a little more guidance.

Whether you are borrowing for an education, car, house, or starting your own business, interest rates will have an impact on your finances. Doing a little research and asking good questions can help save you money and hassle down the road. To get started with your loan application, or to inquire about current interest rates, contact a Magnolia Bank representative today!

Debit Versus Credit: Pros and Cons
Each card provides a different set of pros and cons. It is important to know these pros and cons when choosing which card is right for you.

Have you ever wondered what the difference is between a credit and debit card? Did you know that they function very differently and are two distinct forms of payment that can be used to make purchases? Thinking about applying for your first credit card? In this blog, we will uncover the answers to those questions and discuss the pros and cons of each.

What is a Debit Card?
When you open a checking account, most banks will automatically issue you a debit card that is associated with the account. The bank will also issue a four digit PIN number associated with that debit card. A debit card allows you to pay using money that is available in your bank account. When you swipe your debit card, the payment is deducted directly from your checking account. In summary, you are using your own money to make the purchase or payment.

Magnolia Bank Pro Tip: To avoid fraudulent transactions, keep you debit card PIN number secure and do not share it with anyone. To report your debit card lost or stolen, place call 270.358.3111. After normal banking hours, please call 1.844.890.6194.

What is a Credit Card?
Although they look similar, a credit card functions differently than a debit card. First, you must apply for a credit card with a bank or financial institution. When using a credit card for payment, you are borrowing money from the financial institution with the expectation to pay it back, plus interest owed. It’s also important to know that, different credit cards have different terms or rules associated with them - like the amount of interest that you agree to pay each month.

Magnolia Bank Pro Tip: The next time you make a purchase with a debit card and are asked to choose between credit or debit at checkout, remember that the credit option isn’t a credit purchase. It just means the transaction data gets processed through the credit network associated with your card (i.e. VISA, Mastercard, etc.). The money still gets taken directly out of your checking account so be sure you have available funds to cover the transaction.

Debit Versus Credit: Pros and Cons
Each card provides a different set of pros and cons. It is important to know these pros and cons when choosing which card is right for you.

Magnolia Bank Pro Tip: While you don’t have to worry about paying back a financial institution for purchases you make using a debit card, you do have to be mindful of overdrafting your checking account (i.e. spending more money than you have available in your account). Use the Magnolia Bank Mobile app to check your balance at any time and on the go!

While these cards may look and seem the same, they are actually very different in their functions. Knowing the pros and cons of each type of card can help you decide which one to use to help you reach your financial goals.

No matter which type of card you are using, being mindful of your spending and regularly maintaining your budget can help you avoid financial strain down the road.

Magnolia Bank Pro Tip: To learn more about the difference between credit and debit cards, chack out our latest Finance 101 episode with Eric and Joe here.

We know what you might be thinking: Does anyone even use checks anymore? Why would I need a check if I have a debit card? Personal checks still hold an important place in the banking world. In this blog, you will learn everything you need to know about checks: how to write one, why people still use them, and when you might want to use a check instead of a different payment method.

How do you write a check?

Date: In the top right corner of the check, there will be a place to write the date. This is important for record keeping and can determine whether or not a check is stale. Checks which are at least 180 days old (6 months) are considered stale. Banks will sometimes reject a check if it is stale dated.
Pay to the order of: Underneath your name and address, you should see a line that says “Pay to the order of.” This should be the individual(s) or business that is receiving funds from this check.
Amount: Underneath “Pay to the order of,” there will be a long line that leads to a box with a $ in front of it. In these spaces, you will put the amount of the check.
Inside the box, you’ll need to write the amount of the check in numbers (ex. $150.34). Next, write out the amount in words on the long line (ex. one hundred fifty and 34/100). Always put the amount of change as a fraction out of 100. If there isn’t any change, write 00/100.
Memo: The memo line is optional, but it can be helpful for record keeping. In the memo line, you can write briefly what the check is being used to pay (ex. January Rent, March Car Payment, etc.).
Signature: The last step is to sign your name on the signature line (the line located on the bottom right side of the check.) Checks cannot be processed without a signature. Often, banks will verify this signature matches your signature that’s on file. This helps prevent others from forging your signature and fraudulently accessing your money.

Magnolia Bank Pro Tip: Be sure to sign the endorsement line on the back of any check that is made payable to you before you deposit it!

Why do people still use checks?
So, why would someone use a check over a debit card or peer-to-peer mobile payment app like Venmo? Checks may seem a little old school, but there are still a lot of reasons you may choose to write a check.

• Checks have better security measures: Every check requires a signature to be deposited or cashed, and cashiers are usually required to check someone’s ID before accepting a check to ensure the correct person is using it.

Magnolia Bank Pro Tip: Keep your checks safe by keeping them in a safe place (not in your purse or wallet). Also, be sure to review your bank statements/accounts regularly to catch fraud or scammers early. If you think someone has compromised your check or account, contact a Magnolia banking center immediately.

• Using a check can help you avoid convenience fees: Often, businesses will charge a convenience fee for using a form of electronic payment (ex. 3% extra when using a credit or debit card).
• Checks provide a record of payment for your bank account: Each check has its own check number, making it easier to track over cash. When a person deposits your check, the bank will keep record of that transaction and it will be reflected in your bank statement.

Magnolia Bank Pro Tip: With the Magnolia Bank Mobile app, you can securely deposit checks electronically from anywhere. Learn more about that feature here.

When should I use a check?
Even today, some transactions require a check over other forms of payment. For example, if you are paying rent, your landlord might request a check. If you are making a large payment, like for college tuition, a check might be the better option as it offers a paper-trail for record keeping purposes. Checks are also sometimes required when setting up a direct deposit (i.e. your paycheck) or automatic payments (i.e. utility bill, phone bill, etc.).
In conclusion, while checks may seem outdated, they certainly still can be very useful. And while this may not be your preferred method of payment, we recommend you keep a few checks around - just in case.

Magnolia Bank Pro Tip: You can order checks by contacting any Magnolia banking center or by visiting clarkeamerican.com.

What’s the Difference Between your Account Number and Routing Number?

Account & Routing Numbers 101
Account and Routing Numbers are more than just the long, little numbers that decorate the bottom of your check. These numbers both have special functions and were designed to make banking a little easier. In this blog, you will learn the differences between these two sets of numbers, where you can find them, and why they are important.  

What is a Routing Number? 
Your Routing Number is the first nine digit set of numbers at the bottom of your check. This number is also known as an ABA number, as the American Bankers Association creates and assigns a standard set of digits for each banking institution in the United States. Like an address, your Routing Number tells the Federal Reserve where to send and receive transactions: it ensures that your money gets to the correct bank. 

How can I find my Routing Number? 

• On Your Check: Your Routing Number can be found at the bottom of your check (the first nine digits). 
• Call the Bank: Contact any Magnolia Bank banking center to confirm your Routing Number.

Magnolia Bank Pro Tip: Your Magnolia Bank Routing Number is 083906888. Since the Routing Number is unique to each financial institution, this number will be the same for all Magnolia Bank accounts. 

What is an Account Number? 
Your Account Number is the second set of numbers at the bottom of your check. Unlike the Routing Number, Account Numbers are personalized to your accounts. If you have more than one checking account with us, then you will have multiple account numbers. Your Account Number communicates with the bank when funds should be added or deducted from your checking, savings or other account. It is also used by the bank to uniquely identify your account. 

Magnolia Bank Pro Tip: Your Account Number processes funds into your account, so it is important to keep this number safe and secure to prevent someone from stealing your information and funds. 

How can I find my Account Number? 

• On Your Check: Your Account Number can be found at the bottom of your check (the second set of digits after your Routing Number). 
• Call the bank: You can contact any Magnolia Bank banking center to confirm your Account Number, but be prepared to provide proof of identity to verify your status as the account owner. 

Why are these numbers important? 
Your Routing and Account Numbers are used for a variety of banking transactions so it is important that you know what they are and how to find them. Some common instances you will need your Routing and Account Numbers are: setting up your direct deposit or paycheck with an employer, scheduling automatic bill payments, setting up payment services like Venmo or PayPal, or making payments from your bank account by telephone. Knowing your Routing and Account Numbers will prevent money from being sent or transferred to the wrong account and can prevent banking headaches in the future. 

Magnolia Bank Pro Tip: Magnolia Bank will never contact you requesting sensitive information by email or phone. If someone contacts you and asks for your account information, there's a great chance it’s a scam. 

Creating a Budget – The Magnolia Way  

Budgeting can seem like an overwhelming task, but you’re not alone - Magnolia Bank is here to help! This month, we’re discussing tips and tricks for creating (and sticking to) a budget, so you can relax while you work toward your financial goals.

1. Figure out your monthly net income: Your net income is the money you receive after taxes and deductions are subtracted from your wages. How much money goes into your account each payday? That’s your net income.
• Weekly Pay: If you get paid $200 every week, your monthly net income would be $800 per month.
• Bi-Weekly Pay: If you get paid $400 every two weeks, your monthly net income would be $800 per month. 

2. Track your spending: Make a list of your spending from the past month and group the purchases into categories: essentials versus wants. Then, add all of your purchases for each category together and that is your average spending for the month. 
• Essentials: The “Essentials” category would be things you have to pay, such as rent, utilities, insurance, car payment, etc. 
• Wants: The “Wants” category covers things that you spend money on for fun, such as going out to eat or to the movies. 

Magnolia Bank Pro Tip: Track ALL of Your Spending - Review your bank statement from Magnolia Bank or keep a record of your spending. This will help you track and understand where your money is going each month.

3. Subtract your monthly spending from your monthly net income: After tracking your spending and obtaining the totals for each category, subtract those totals from your net income and this will show you how much money you have left for the month. 
• $800 (Monthly Net Income) - $210 (Monthly Essentials Total) - $350 (Monthly Wants Total) =  $240 Remaining 

4. Set goals for your remaining money: Now that you see how much money you have after you cover your expenses, you can decide what to do with that money. Maybe you want to save up for a car, college tuition, or an emergency fund. Or maybe you want to save more money and limit your spending. Delegate an amount for each of your goals:
• $240 (Remaining Money Total) = $150 (Saved for a Car) / $90 (Saved for Emergencies)

Magnolia Bank Pro Tip: Create a Budget Calendar - Write down your budget and place it where you can see it often to help you stay focused and organized. 

Magnolia Bank Pro Tip: Pay Yourself First - Deposit or set up a direct transfer to your savings account as soon as you get paid to ensure you are saving for your goals. Ask us about Swipe-N-Save which automatically rounds up each debit card purchase to the nearest dollar and transfers the difference to your savings account.

5. Check back regularly: Keep track of your spending to ensure that you are staying within your budget. At the end of the month, repeat the process and make adjustments as necessary. 

Magnolia Bank Pro Tip: Remember Your Why - What was your goal (i.e. saving for a car, limiting impulse buying, etc.)? Remember that your budget is here to help you reach that goal, not to punish you. 

Magnolia Bank Pro Tip: Allow for Adjustments - Your budget will change and grow with you. If you overspent in a category this month, make a note to add more to that category of your budget next month or try to limit your spending in that area. 

On average, it takes 3-4 months to create a steady budget, so be patient and give yourself a little grace as you work through it. If you have any other questions about budgeting, you can always reach out to Magnolia Bank staff at any of our banking center locations.