WSB's Banknotes

Tips to Save for Homeownership – May ‘25


Buying a home can be stressful regardless of the stage of life you’re in. When you start planning to buy a house, it can be intimidating to think about how much money you must save. However, once you start down the path, it may seem easier than you originally thought.

 

Set a goal

When you begin to consider buying a home, it’s important to determine an affordable price range for your house hunt. Homebuying costs, such as the down payment and closing costs, are often expressed as a percentage of the home price. With a purchase price in mind, you can set a specific savings goal.

Start by ensuring you’re financially ready to make such a large purchase. Factors to consider include your total savings, total debt, and credit history. These factors will help determine your qualifying loan amount, interest rate, and how much you can afford as a down payment.

When it comes to down payments, the more you can pay up front, the lower your payments and the higher your equity. Savvy homebuyers put down 20%. This isn’t a requirement, but doing so could help reduce the interest rate on your mortgage and help you avoid costly private mortgage insurance. In addition, consider closing costs and moving expenses when thinking about your savings goal. Between moving expenses, home furnishings, and any potential mishaps that may arise, it is important to plan to have extra cash on hand to cover these expenses.

Find your savings goal by adding up rough estimates for each expense — down payment, closing costs and other cash to have on hand.

 

Tighten your budget and save any extra cash

To attain that goal, create a plan. Start by minimizing other expenses. Compare car or health insurance rates to find the best deal. You might also be able to save by researching and finding lower-cost options for services you need such as your internet or cell phone plan. In addition, make sure you cancel subscriptions you’re not using.

When extra money comes your way, save instead of spending. Whether it is from a gift or extra income, be sure to put it into savings.

 

Keep your savings in a separate account

When you’re saving to buy a house, you want your money to work harder for you by depositing it in an interest-bearing account. Use an account's annual percentage yield (APY) to compare options. A higher APY means your money grows faster. Typically, the best options are high-yield savings accounts, money market accounts, or certificates of deposit. Talk to one of our Personal Bankers to discuss what the best option is for you.

Saving to buy a home may feel like an uphill climb. However, small actions add up and make a difference. Washington State Bank is here to help you reach your goal of purchasing your dream home.

 

 These tips are provided by the Iowa Bankers Association.

Empowering Financial Futures: Highlighting the Importance of Financial Literacy - Apr. '25

 

Washington State Bank and the Independent Community Bankers of America (ICBA) are celebrating Financial Literacy Month in April by encouraging Americans to take control of their financial future and learn fiscally responsible habits that can benefit them at every age and stage of their financial journey. Twenty-seven percent of Americans report that “just getting by financially or finding it hard to get by” describes them completely or very well. Meanwhile 59% want financial advice, but only a third (32 percent) turn to registered financial advisors for help, despite the fact that 68 percent indicated a

Often referred to as America’s favorite lenders, community banks are financial experts with a wealth of knowledge and local expertise to help consumers with:

  • Budgeting to help you track income and expenses and build a plan to manage your finances, reach your financial goals, and create a nest egg.
  • Saving and investing to help you assess savings and investment goals and vehicles.
  • Using credit to establish and maintain good credit so you can reap the benefits from this convenient and flexible form of payment without the consequences of mismanagement.
  • Understanding debt load and available options like debt consolidation before taking out a loan.

“Understanding key financial principles, like budgeting and managing credit wisely, is essential for achieving long-term financial security," ICBA President and CEO Rebeca Romero Rainey said. "Community banks like Washington State Bank are trusted advisors, offering the local expertise and personal connections that help individuals achieve financial independence."

ICBA also offers financial literacy programs through community bank partners including Visa’s Practical Money Skills, the FDIC’s Money Smart initiatives and the Jump$tart Coalition for Personal Financial Literacy. To find one of our community bank locations in your area visit, banklocally.org.

 

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.  

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.

Avoid the Temptation of Smishing Scams – Mar ‘25

Most people are aware of phishing – or email scams – but they may not realize scammers can also target them with deceptive text messages sent to their smart devices. It's called "smishing": a mashup of SMS – for "short message service" – and phishing.

A typical smishing scam message may seem like it's from a bank – maybe even WSB – and include a link or phone number to bait you into clicking or calling. If you do, you stand a good chance of being hooked. And that's when the scammers get to work, manipulating your personal information, which they can sell and/or use in other scams. Fraudsters may also try to entice you into downloading malware to your device.

Things you can do to avoid being a victim of a smishing attempt include:

  • Never click links, reply to text messages or call numbers you don't recognize.
  • Do not respond, even if the message requests that you "text STOP" to end messages.
  • Delete all suspicious texts.
  • Make sure your smart device OS and security apps are updated to the latest version.
  • Consider installing anti-malware software on your device for added security.
  • Protect any sensitive personal information - bank accounts, health records, social media accounts, etc. - by using multi-factor authentication to access it. 

Validate any suspicious texts. If you get a text purportedly from a company or government agency, check your bill for contact information or search the company or agency's official website. Call or email them separately to confirm whether you received a legitimate text. A simple web search can thwart a scammer.

Bottom line: Stop before you engage and avoid the urge to respond. According to the FBI, Americans lost more than $1.4 billion to cybercrime in 2017, and a significant portion of that is attributed to personal data breaches, identity theft, confidence fraud and credit card fraud totaling hundreds of millions of dollars.

If you think that you are a victim of smishing, you should contact law enforcement to report the scam. You can also file a complaint with the FCC at no cost. Read the FCC Complaint Center FAQ to learn more about the FCC's informal complaint process, including how to file a complaint, and what happens after a complaint is filed.

Additionally, you can file complaints about consumer fraud with the Federal Trade Commission.

 

This article was provided by the Federal Communications Commission.

“Avoid the Temptation of Smishing Scams.” Federal Communications Commission, Bureau/Office: Consumer and Governmental Affairs, 1 Feb. 2024, www.fcc.gov/avoid-temptation-smishing-scams.

Tips to Protect Against Fraud During Tax Season – Feb. ‘25

As tax season approaches, we’re reminding consumers to be vigilant about protecting their personal information and refunds from fraud. Tax-related identity theft and scams are on the rise, and criminals are becoming increasingly sophisticated in their efforts to steal personal data and money. Here are several tips to help protect your personal information and ensure a secure tax season.

  • Beware of phone scams and spoofing – Scammers often use spoofing and robocalls to impersonate the IRS, making it seem like they’re contacting you about your taxes. If you receive a call from someone claiming to be the IRS, ask for a reference number, then hang up and call the IRS directly using an official phone number found on the IRS website to confirm whether the call was legitimate.
  • Watch out for smishing and phishing attempts – Be on the lookout for smishing (SMS phishing) scams, where fraudsters send text messages with "urgent" links that may lead to malicious websites designed to steal your personal information. Similarly, phishing emails impersonating the IRS often come with aggressive subject lines demanding immediate payment. Always check the sender's email address – if it doesn't end in ".gov," it’s likely a scam.
  • Look out for misleading tax advice on social media – With the rise of social media, scammers have found a new avenue to spread misinformation, including offering fraudulent tax advice or fake tax refund promises. The IRS continues to see a variety of filing season hashtags and social media discussions that mislead taxpayers with inaccurate and potentially fraudulent information. While some information can be helpful, it’s important to verify everything with official sources.
  • File your tax return early – To reduce the risk of identity theft, consider filing your tax return as early as possible. Criminals often file false returns using stolen personal information, so filing sooner gives you a better chance of detecting fraud early and protecting your tax refund.
  • Use strong, unique passwords – When filing taxes online, ensure that you’re using strong, unique passwords for all accounts related to tax preparation. Enable two-factor authentication (2FA) when available and avoid using public Wi-Fi to submit sensitive information.
  • Monitor your financial accounts and credit reports – After filing, be sure to keep an eye on your bank accounts and credit reports. If you notice any suspicious activity, report it immediately to your bank and the IRS. You can also check your credit report for free once a year at www.annualcreditreport.com to monitor any unauthorized accounts.
 
These tips are provided by the Iowa Bankers Association.

Protecting Older Americans from Financial Exploitation – Jan. ‘25

You, or someone you know, could become the victim of a growing crime in America — financial exploitation of older Americans. Criminals are targeting people of all ages, but especially those of an older generation. As people over 50 years old hold most of the nation's wealth, fraudsters are using new tactics to take advantage of retiring baby boomers and the growing number of older Americans.

What Is Elder Financial Exploitation?

It is defined as the illegal, unauthorized, or improper use of an older person's funds, property, or assets. It’s a crime that deprives older adults of their resources and ultimately their independence. Perpetrators may be family members, friends, neighbors, caregivers, health care providers, business associates, or strangers.

Tips for Seniors

What should you do to protect yourself?

  • Plan ahead to protect your assets and to ensure your wishes are followed. Consider a financial caregiver.
  • Shred receipts, bank statements and unused credit card offers before throwing them away.
  • Lock up your checkbook, account statements and other sensitive information when others will be in your home.
  • Regularly review your credit report. Never give personal information, including Social Security Number, account number or other financial information to anyone over the phone unless you initiated the call and trust the other party.
  • Never pay a fee or taxes to collect sweepstakes or lottery “winnings.”
  • Never rush into a financial decision. Ask for details in writing and get a second opinion.
  • Consult with a financial advisor or attorney before signing any document you don’t understand.
  • Get to know your banker and build a relationship with the people who handle your finances. They can look out for any suspicious activity related to your account.
  • Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your finances.
  • Pay with credit cards instead of cash to keep a paper trail.
  • Trust your instincts. Exploiters often are very skilled. They can be charming and forceful in their effort to convince you to give up control of your finances. Don’t be fooled—if something doesn’t feel right, it may not be right. If it sounds too good to be true, it probably is.

What should you do if you are a victim of financial exploitation?

  • Talk to a trusted family member or friend.
  • Tell your bank.
  • Report it to your local police.
  • File a report with the FBI at IC3.Gov.

Tips for Family and Friends

What are the warning signs of elder financial exploitation?

  • Unusual activity in an older person’s bank accounts, including large, frequent or unexplained withdrawals, or large wire attempts.
  • ATM withdrawals by an older person who has never used a debit or ATM card.
  • Changing from a basic account to one that offers more complicated services the customer does not fully understand or need.
  • Withdrawals from bank accounts or transfers between accounts the customer cannot explain.
  • New “best friends” accompanying an older person to the bank.
  • Sudden non-sufficient fund activity or unpaid bills.
  • Suspicious signatures on checks, or outright forgery.
  • Confusion, fear or lack of awareness on the part of an older customer.
  • Refusal to make eye contact, shame or reluctance to talk about the problem.
  • Checks written as “loans” or “gifts.”
  • Bank statements that no longer go to the customer’s home.
  • Altered wills and trusts.

What should you do if you suspect elder financial exploitation?

  • Talk to your older loved ones. Try to determine what specifically is happening with their financial situation.
  • Report elder financial exploitation to their bank.
  • Contact Adult Protective Services.
  • Reach out to the police and file a report with the FBI at IC3.Gov.

This article comes from the American Bankers Association: https://www.aba.com/advocacy/community-programs/consumer-resources/protect-your-money/elderly-financial-abuse