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7 Financial Tips Every College Student Should Know

Posted on May 8th, 2013 in Financial Tips by NSBblogger |

As a parent with a child graduating high school this spring and heading to college in the fall, or if they are already on campus, the thought of them managing their own finances may make you cringe or fill you with anxiety. You want to help them make smart decisions. However, you know you have to let them have some independence when it comes to the finances in order for them to learn.

Do you have a child heading to college in the fall? Make sure they are prepared to handle their own finances be for you drop them off at campus!


In order to help, Northeast Security Bank has come up with 7 financial tips that you should share with your college-aged child:

  1. Easy on the credit- extra credit in class is good, but not so much for credit cards. It’s not free money. Start with a $1,000-limit card that comes with points or rewards and be sure to pay the balance every month.
  2. Budget- it’s not just something you read about in business class. Your budget doesn’t have to be detailed, it just needs to show how much you receive and need to spend.
  3. Free Stuff!– students love free stuff, so take advantage of campus meal plans instead of eating out. It’s far less expensive.
  4. Downsize your textbook bill- yes, the bookstore is on campus, but they often mark up their textbook prices. Search for books on Amazon or eBay.
  5. Student loans = last resort- explore all other options to borrow less and decrease the amount of debt you leave school with.
  6. Be a social butterfly- 70 percent of jobs these days are found through personal relationships. Make friends, find a mentor and give yourself options now while it’s easy.
  7. The $50 rule- if it costs more than $50, ask yourself if you really need it. This can save you from making unnecessary and costly purchases.

College is a great time meant for learning, meeting new groups of people and having fun. Becoming responsible with money is just another skill your child will need to have once they have their diploma, so be sure to share these tips with them.
If you have any other questions as to how Northeast Security Bank can help your child financially while in school, feel free to contact any of our locations today!

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Best Financial Advice I Ever Received Series: Matt Burkey

Posted on April 25th, 2013 in Best Financial Advice by NSBblogger |

Everybody loves having more money for themselves and their family, and everyone loves owing less money to fewer people. In the second installment of our “Best Financial Advice I Ever Received” series, real estate loan officer Matt Burkey discusses creating a budget, saving for larger purchasesand decreasing your debt.

Creating a budget, committing to saving and making additional payments are easy ways to stay on top of your finances.


“Create a budget and follow it.  It puts a plan in place for your money and helps you develop goals for monthly/annual savings,” Matt said. If you see where your money is going, you’re more likely to be careful with it and spend less of it. Additionally, having a goal gives you something specific to shoot for instead of trying to blindly save money.
“Save money for down payments on large purchases,” Matt added. “This gives you the ability to make these purchases, as well as helps save you money by not having to pay additional interest costs and reducing PMI (private mortgage insurance) costs, or eliminating them all together.” Interest can build up fast especially on larger amounts. The more money you can put down, the smaller the remaining balance is and the slower the interest will grow. Before purchasing a house, car or other large item, make sure you know how much you need to have saved up to make a large enough down payment.
Finally, Matt said, “Make additional payments on your debt even if it is just in small amounts. It reduces interest paid, and helps increase equity and net worth faster.” If you have some leftover funds after you’ve gone through your budget, you can save it. However, it also makes great financial sense to make an additional payment on your debt. Again, this will help decrease the amount of interest you pay because of the lower remaining balance on your debt. It will also help with your credit as you build up a payment history.
It is never too late to start good financial habits, so see if there are places in your life where you can implement Matt’s tips. We’ll have another Northeast Security Bank staff member’s financial advice next month, so be sure to check back. We also have another blog post coming later this month about reducing debt, so you won’t want to miss that!

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5 Ways to Begin Reducing Your Debt NOW

Posted on April 25th, 2013 in Debt Reduction by NSBblogger |

As we mentioned in our last post, no one enjoys owing other people or organizations money. It creates anxiety. You need to make a dent in your credit card or loandebt, but you can barely make the minimum payment let alone actually start doing some damage to your balance. But instead of complaining, it’s time to implement a smarter way to pay down your debt. Here are five ways to begin reducing your debt as soon as possible!

Paying attention to details is vital in being able to reducing your debt.


Take ownership- if your name is on the credit card or the loan, then it’s your responsibility. The company you borrowed from has most likely warned you about borrowing too much, but in the end you have to take sole ownership of your debt. Last time we checked, complaining doesn’t shrink debt. Roll up your sleeves, because it’s time to get to work!
Create a budget- perhaps the most common financial advice ever, but it works. Yes, it may be boring, but when you actually see where your money is going, it becomes a lot easier to identify areas where you could save.
Think of credit cards as loans- swiping your credit card is not the same as swiping your debit card or paying in cash. You are borrowing money that must be repaid and only gets more expensive if you don’t!
Watch the small fees- accumulating small costs can make a huge impact on your debt. A couple of fees here, a nice meal or two out there and you could be looking at hundreds to thousands of dollars a year. Use your budget to identify these costs, and then put them toward repaying your loan.
Remind yourself- “behind” is not where you want to be when it comes to repaying debt. Getting your balance down to zero takes time and discipline, so set alarms or reminders on your phone, put sticky notes on your mirror or whatever it takes to remind you to make payments.
When it comes to credit card or loan debt, treading water only brings you closer to sinking. You may need to make some sacrifices, but grinding now to pay down your debt will make a huge difference in your financial future. If you need help, Northeast Security Bank can provide guidance and alternatives to help you keep your head above water.

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The Home-Buying Decision: 4 Important Things to Consider

Posted on March 27th, 2013 in Home Buying by NSBblogger |

Chances are you’ve heard about the housing market in the United States recently. It is often a topic on the nightly news and is used as an indicator as to how our economy is fairing. A new home is a chance to build equity, take advantage of tax deductibility of your mortgage interest and of course, getting your own slice of the American Dream.

Before you sign for a new home, you need to be sure your financial and personal life is sound and stable.


Despite what the experts say, you don’t have to find the perfect home or wait for ideal market conditions before making a purchase. Buying a new home is nothing to take lightly, but there are four main things to consider before signing the closing papers:
The size of your savings account- at the bare minimum you need five percent of the cost of your new home saved up. The larger the down payment you have, the better interest rate you will get. A down payment of at least 20 percent of your home’s cost allows you to avoid costly private mortgage insurance.
How much home can you afford? – you can find many different guidelines when it comes to this. One that we recommend is looking at your mortgage payment, which includes one month’s property taxes and one month’s homeowner’s insurance as a percentage of your monthly income. Keep it under 28 percent. And remember, any percentage guidelines like this that you find are limits, not goals. Buying a home a little under your means allows for more money to spend on other aspects of your life.
Check your credit- get all three credit scores, as well as your FICO score before applying for a mortgage loan. If you’ve had a few missed payments lately, take some time to catch up before applying. A better interest rate can mean the difference between thousands of dollars in your pocket.
Job stability and home life- more than just being able to afford the monthly payments, you can be stuck without being able to recoup your investment if you move or get a divorce, even if you do sell the house.
While there are other things to consider, the above items are a great starting place, and go a long way in helping you determine whether you have the means and stability to buy a new home.  When you are ready, come to Northeast Security Bank and we’ll help you with your mortgage loan needs!

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Best Financial Advice I Ever Received- Ann Wedemeier

Posted on March 13th, 2013 in Savings by NSBblogger |

Northeast Security Bankis always looking to give back to our community, whether it’s offering cookies and coffee for our customers or raising money for local organizations through Casual for a Cause. Now we want to also help you with your financial life outside of the normal banking process through a series of blog posts we call “The Best Financial Advice I Ever Received.”

No matter your age or financial status, you can always use solid financial advice!


These posts will feature a member of our staff providing financial wisdom that was handed down to them by their parents, grandparents or other trusted confidantes. The inaugural post in this series focuses on Ann Wedemeier, one of our talented Real Estate Loan Officers, and her advice about saving for retirement and keep more money in your pocket.
“Start saving/investing in retirement as soon as you can.  The earlier you start investing, the longer that money has to grow.  Put in as much as possible right out of your paycheck.  If you start it right away you won’t miss the money from your disposable income,” instructed Ann.  Diversified savings and investments are great tools. Savings accounts, IRAs, CDs and 401(k)s all help you save. 
“When making loan payments, check to see if the lender allows biweekly payments.  The more often you pay down on the principal the less interest you pay over the course of the loan,” Ann added. The less interest you pay over the life of the loan, the more money you save. Pure and simple. 
Ann also recommended to “pay your credit card off monthly. Once you let that balance start rolling from month to the month you’re going to have a harder time getting that debt paid off.” Think of debt like a snowball; it’s easier to stop when it’s smaller rather than larger. 
Finally, Ann left us with the recommendation to “spend within your means.  Make a budget and determine your ‘wants’ from ‘needs.’” Great advice, especially for college students or new graduates. Do you really need a brand new, $400 flat-screen TV? No. Do you need enough groceries to last for two weeks? Yes! Take care of the essentials first, and then take care of wants if you have the money for it.
This was some great advice for people of all ages! Be sure to check back next month when we’ll feature another Northeast Security Bank staff member offering up their fiscal guidance. Until then, remember to save and spend wisely!

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Casual Charity and Friday Fun

Posted on January 22nd, 2013 in Casual for a Cause, TGIFF by NSBblogger |

Part of our culture at Northeast Security Bank is getting to know our customers personally, as well as the communities we are a part of. As a community bank in four Northeast Iowa communities, we see ourselves as valuable community members, and like to reach out and give back to our areas as often as possible. To help in this effort, we are continuing our program this year at each of our locations called Casual for a Cause.

Our employees will be helping raise money for local charities with the Casual for a Cause program. What’s your favorite local charity?


Casual for a Cause is a fundraising opportunity for the employees at each of Northeast Security Bank’s branches in Decorah, Fairbank, Fredericksburg and Sumner. It is also a chance for them to slip into their favorite pair of comfortable jeans and leave the suits and ties at home. Here’s how Casual for a Cause works.
On certain days every month, the staff at all four Northeast Security Bank locations can wear jeans to work in exchange for donating $5 for every time they do. Twelve months from now at the end of the year, we will collect all the money that has been donated by our employees and make a contribution to a worthy charity.  This year, we are asking for your help to decide which charity receives the donations.  Visit the Casual for a Cause tab on our Facebook page to cast your votes or nominate a local charity!
We also will be having Thank Goodness It’s Fun Friday (TGIFF) at each of our branches. This is a chance for you to come in, have some tasty refreshments on us, and register to win a prize in a giveaway. How awesome is that?
We hope both of these recurring events will be beneficial for our communities, customers and employees as we work to better the communities we serve.

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Making Your Tax Return Earn

Posted on January 15th, 2013 in CDs by NSBblogger |

As much as we may not want to face it, we are coming to the point in the year where we begin to look over tax information as we prepare to get our taxes in by the April 15 deadline. On the other hand, there is a silver lining in the stressful tax season: your tax return.

Investing your tax return this year could help you afford that dream vacation you’ve been wanting to take!


A lot of people use this extra monetary boost to help with their spring home improvement projects or expenses. However, if you feel like you have enough saved up funds in your checking and savings accounts, another option would be to put this year’s tax return into a certificate of deposit, or CD.
A CD allows you to save money for the future at a significantly higher interest rate than your regular savings account. This allows your money to grow at a faster rate over the time period of the CD. An excellent investment resource, a CD poses less financial risk than playing the stock market, never loses principal or interest and is insured by the FDIC.
Not only do CDs grow faster than normal savings accounts and have low financial risk, but they are also flexible after the maturity date. You can withdraw your money completely, re-invest the entire lump sum or re-invest the interest your CD earned. The choice is up to you.
In this volatile economic climate, putting your money in an up-and-down stock market is not always safe. Come speak with the financial experts at Northeast Security Bank to learn about putting your money into an efficient and secure CD to save for the future.

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Northeast Security Bank

Posted on November 19th, 2012 in Accounts by vgmforbin |

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.
The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts (“IOLTAs”). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.
For more information about temporary FDIC insurance coverage of transaction accounts, visit ww.fdic.gov.

Super Now

  • Minimum Opening Deposit $1,000.00
  • Account Fees
  • Monthly maintenance fee* $10.00
  • Excess debit fee of $0.25 per check / debit over 25.
  • Interest is accrued daily and is paid monthly on the collected balance.
  • *Monthly maintenance fee is waived if minimum daily balance exceeds $1,000.00.
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