Category Archives: Savings, Checking Accounts & Debit Cards

How to Maximize Savings as Interest Rates Decrease

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The Federal Reserve announced a federal funds rate cut of half a percentage point at its September meeting, the first time it has lowered rates since the start of the pandemic in March 2020. There is also another Federal Reserve meeting scheduled to take place this week. Here are some key strategies to help you navigate a fluctuating interest rate environment and make the most of your hard-earned savings.

1. Consider High-Yield Savings Accounts

As interest rates fall, traditional savings accounts may offer minimal returns. However, many banks and credit unions offer high-yield savings accounts. These accounts generally provide better interest rates due to lower overhead costs, making them a smart option for those looking to grow their savings more efficiently.

To maximize your returns, compare rates regularly. Even a small increase in your savings account’s interest rate can make a noticeable difference, especially over time. First Financial’s Savings Accounts offer quarterly dividends.*

2. CDs are Another Option for Savings

If you’re concerned about declining interest rates, certificates of deposit (CDs) can offer a more stable option. By locking in a fixed rate, you ensure your savings will continue to grow regardless of future rate cuts. When your CD matures, you can decide whether to reinvest at a potentially better rate or keep the funds available for other financial needs. First Financial’s Savings Certificates offer terms ranging from 6 to 72 months.**

3. Focus On Your Emergency Fund

In any interest rate environment, your emergency fund is critical. Experts typically recommend keeping 3 to 6 months’ worth of living expenses in easily accessible savings. With rates dropping, now might be a good time to reassess that fund.

You should never move your emergency savings into riskier investments, but it’s smart to ensure that it’s earning the best rate possible. High-yield savings accounts or short-term CDs may offer the liquidity you need, while providing a modest return. Keep in mind that the goal of an emergency fund is security, not high returns – so focus on accessibility first.

4. Stay Informed and Be Flexible

Interest rates can fluctuate based on economic conditions, so stay informed and be flexible. Review your financial plan regularly and be willing to adjust your savings strategy as needed. What works in a high-interest environment likely won’t be effective when rates decline and vice versa, so be prepared to shift tactics if necessary. However, you shouldn’t continually make drastic changes just to keep pace with the market either. Consult with a financial professional and take time to conduct research.

You can also subscribe to financial newsletters or consult with a financial advisor to stay updated on changes in the rate environment and how they may impact your savings. By staying proactive, you can ensure your money is always working as hard as possible, regardless of the current economic conditions.

Make Your Savings Work Harder with First Financial

Navigating a changing interest rate environment can feel challenging, but with the right strategies, you can continue to grow your savings. For personalized financial guidance, call us at 732.312.1500 or visit a branch today. Don’t forget to subscribe to the First Scoop blog for more tips and insights on managing your finances.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. View full Rewards First program details at firstffcu.com. Some restrictions apply, contact the Credit Union for more information. If balance falls below $5, a monthly service fee of $5 will be imposed.

 **A penalty may be imposed for Certificate withdrawals before maturity. See your Important Account Information for Our Members document for details. The Annual Percentage Yield is based on the assumption that dividends will remain in the account until maturity and the minimum balance is maintained.

Savings Accounts Everyone Should Have

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Saving money is an essential part of financial planning, but simply putting money aside in a single account may not be enough. Different savings goals require different types of accounts, and having multiple accounts can help you optimize your savings strategy. Here are five types of savings accounts you should have to meet your financial goals.

Emergency Fund Savings Account

An emergency fund is the money you set aside to cover unexpected expenses, such as a medical emergency, car repair, or job loss. This type of savings account should be easily accessible and provide a higher interest rate than a regular savings account.

Consider an online savings account or a money market account for your emergency fund. Online savings accounts generally offer higher interest rates than traditional savings accounts, while money market accounts offer both higher-interest rates and check-writing privileges.

Short-Term Savings Account

A short-term savings account is for saving money that you will need soon, such as for a wedding or vacation. This type of account should be separate from your emergency fund and offer easy access to your money. At First Financial, we offer a summer savings account* for members to save money if they don’t receive income during the summer months, or for a future summer vacation. We also have a holiday club account* in order to save money throughout the year come end of year holiday expenses.

Long-Term Savings Account

A long-term savings account is for saving money that you will not need for several years, such as for retirement or a child’s education. This type of account should offer higher interest rates and be invested in growth-oriented investments.

Consider a retirement account, such as a 401(k) or IRA, for your long-term savings. These accounts offer tax advantages and are specifically designed for retirement savings. If you’re saving for a child’s education, consider a 529 college savings plan.

Goal-Specific Savings Account

A goal-specific savings account is for saving money for a specific goal, such as a new car or a home renovation. This type of account should offer higher interest rates and be separate from your other savings accounts.

Consider a certificate of deposit (CD) for your goal-specific savings. CDs offer fixed interest rates and are FDIC or NCUA-insured, but they generally require you to keep your money locked in for a set period.

Investment Savings Account

An investment savings account is for saving money you plan to invest in the stock market. This type of account should offer easy access to your money and lower fees. You’ll want to consider a brokerage account for your investment savings. Brokerage accounts allow you to buy and sell stocks, bonds, and other investments, and they offer a variety of options.

Having multiple savings accounts can help you optimize your savings strategy and meet your financial goals. We offer a variety of personal savings account options at First Financial for every type of purpose or situation. Getting started is easy — call member services at 732.312.1500 or visit one of our branches!

Looking for more financial advice? Subscribe to our First Scoop blog!

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

 

Stay Safe with These ATM Security Tips

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ATMs may be one of the easiest ways to access the money in your bank account, but they are also a target for theft. Criminals have been known to try taking cash right out of your hands upon leaving the ATM, or even stealing your personal identification number (PIN) at the ATM. This risk can be higher depending on the machine’s location or the time of day. Don’t let this scare you from ever using an ATM again though – you can take plenty of safety precautions to protect yourself and your money.

Here are our top ATM security tips for the next time you plan to withdraw money.

Keep your PIN private

If someone can steal your PIN, they can likely pretend to be you and use your account. That’s why it’s essential to be aware of your surroundings when using your card at an ATM. Someone waiting in line behind you can peer over your shoulder to see your PIN, or even withdraw more money if you forgot to end your transaction before walking away.

A more stealthy way criminals can try to take your money is by installing card skimmers on ATMs to capture people’s debit cards. Skimmers are hard to identify, making it challenging to even know your information has been compromised. Without taking proper precautions, your information can be sold online or used by criminals to make purchases.

Here are some tips for protecting your ATM/Debit card:

  • Inspect the ATM for possible skimming devices. Some red flags include sticky residue from an adhesive, damaged pieces, loose or extra attachments on the card slot, or noticeable resistance with pressing the keypad. Check out our ATM card skimming and fraud prevention guide for more information and images.
  • Cover your hand over the ATM keypad as you enter your PIN so no one around you can see.
  • Never write down your PIN or tell anyone your number. Keep it as private as possible.
  • Never give information about your ATM card or PIN over the phone. If your bank calls asking for you to verify your PIN, it is likely a scam.
  • Consistently check your accounts for suspicious activity.
  • Keep your card in a safe place and don’t ever leave it lying around – even at home.

Be alert at the ATM

No matter where you’re using an ATM, you’ll need to scan your surroundings for suspicious activity. If you notice someone waiting in a nearby car or hanging around while keeping an eye on you, try coming back later or using a different ATM. You’ll want to use your judgment – if something doesn’t feel safe, you’re probably right.

After withdrawing cash, stay alert. Some criminals may try to follow you. If you think that’s the case, find a heavily populated area and call the police. We recommend following these precautions every time you visit the ATM:

  • Bring someone with you when you go to the ATM.
  • Lock your doors at drive-thru ATMs.
  • Avoid using ATM machines at night.
  • Have your card ready as you get to the ATM, and do not linger and count your cash once it’s withdrawn from the machine.
  • Don’t leave your transaction receipt at the ATM.
  • If someone approaches you at the ATM and demands money, give it to them. No amount of money is worth risking your life. Call the authorities as soon as you’re somewhere safe if this happens.

View additional ATM skimming safety tips in our YouTube video.

At First Financial, we are here to help protect our members from fraud, scams, and identity theft. If you have any concerns or questions about any of your First Financial accounts, please call member services at 732.312.1500 or visit one of our branches.

Want to see more articles like this? Subscribe to First Financial’s monthly newsletter for financial resources and advice.

What To Do When Your Debit Card is Compromised

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Have you ever gotten a letter in the mail from your bank saying that your account may have been compromised? If you’ve ever had this happen before, it elicits all sorts of questions. Was there fraudulent activity on my account? Who ‘may have’ compromised my card, and when? Am I liable financially?

First of all, getting a letter like this doesn’t necessarily mean there was a fraudulent transaction. Your bank is simply following a standard precaution. What it does mean is there was suspicious activity associated with your debit card. Your card number and name might have been obtained by an unauthorized source, usually at a retail location with a card processing system targeted by hackers.

Secondly, your bank may not even know where and when the card was potentially compromised. Mastercard, Visa and other card companies don’t usually release this information to the bank unless there’s a massive breach. Card companies simply notify the bank of suspicious activity, and your bank follows its standard policy – which is usually to cancel the card number and issue a new one.

Thirdly, even though you don’t know if, when, and where the compromise might have occurred, it’s important to do your own research. Besides credit card companies, banks also monitor account activity. This offers another level of assurance, but you can never be too cautious. We should always keep a close eye on our bank accounts, especially since small, ordinary transactions can be easily overlooked. Hackers often test a stolen card number this way before making major purchases or withdrawals (like dipping a toe in the water to test the temperature before plunging in). So if you do receive a letter like this in the mail, immediately check your account activity. If there are any unauthorized transactions, call the bank and report them.

Lastly, examine your habits for anything that is leaving your card number vulnerable. Have you been using your debit card more than usual? If you make frequent electronic purchases, use a credit card – which at least won’t risk your personal checking and savings accounts getting wiped out.

Along with this, consider the following precautions:

  • When making online purchases, always look for the secure “lock” icon.
  • Listen to your instincts if anything looks fishy about a website you’re entering personal information into.
  • Clear your web browser history frequently. Don’t let your computer save passwords, and delete cookies.
  • Don’t respond to emails requesting verification of personal information. Because of the risks, your bank will never ask you to do this.
  • Be skeptical of application downloads and updates, even if they look legitimate. Scammers are great at creating imitations that install spyware on your computer.
  • Use a quality anti-virus and anti-malware program and make sure it’s enabled to run routine scans.

If you have a First Financial Debit Card – Enroll it in Visa Purchase Alerts today! You’ll get an email each time your Debit Card is used over an amount you set, when your card is used outside the county, or when your card is used to make a purchase online or over the phone.

 Article Source: Jessica Sommerfield for MoneyNing.com

The Basics: Student Checking

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Students with laptop computerMany young adults enter the “real world” lacking the proper knowledge in financial literacy. The following information will assist with setting up and understanding the features and benefits of student checking accounts more clearly.

What Can a Checking Account do for You?

A checking account offers easy accessibility to your money anytime, anywhere and it also helps keep your cash secure – often times through use of a debit card. A debit card is a card that grants you electronic access to the money in your account, which is often referred to as a check card. You may also receive checks to make purchases or pay bills from your checking account. This makes it easier to spend and receive money without carrying cash. Checking accounts are also important for building credit, which you will need to make major purchases such as a car or a house in the future.

A great checking account option for students is Student Checking. The perks of Student Checking accounts vary among financial institutions, but many include free checks, free ATM usage, and better loan rates.

Preparation

Before opening a checking account, make sure you are prepared. Here are a few tips to remember when you begin the process:

  • Get all of your personal documents together. You will have to prove that you are who you say you are, to open an account. Make sure you have the proper identification such as a driver’s license, photo I.D. card, and Social Security card.
  • Know what services your credit union or financial institution offers. Does the institution provide online banking and bill pay? What fees (if any) does the account charge?
  • Look for branch and ATM locations. When choosing a financial institution, it’s a good idea to check for locations near your home, job, or school. It’s also a good idea to consider the locations and availability of their ATMs.
  • Be able to identify fraud. Many Americans have been exposed to financial scams as of late, and even more are unable to identify classic red flags. Common fraud attempts include propositions for “educational” investment meetings, or being offered money in exchange for paying a fee or making an initial deposit. Use common sense and be cautious around offers that seem too good to be true.

First Financial offers Student Checking to students who live, work, worship, or attend school in Monmouth or Ocean County, ages 14-23.*

The account includes the following features and benefits:

  • A free first box of checks and an allowance of the first mistake being free+
  • Free phone transfers to the account by parents
  • No per-check charges
  • No minimum balance requirements
  • No monthly service charge for having the account
  • A Debit Card issued instantly in one of our Monmouth or Ocean County      branches.
  • Free Online Banking with Bill Pay
  • Unlimited in-branch transactions

Remember that it is important to establish yourself financially as a student. After your schooling is finished, you will begin your search for a career. Understanding your account and personal finance can only help you when you begin this independent stage of life, and First Financial is here to help you every step of the way!

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Accounts for children age 13 and under are excluded from this program.

+ Call or visit a branch to request refund of the first fee incurred. We must receive request within 90 days of date fee is charged in order to be eligible for refund. The eligible fees are NSF, Overdraft, and Courtesy Pay fees.