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   -Pretty Big Kids Club     -Health Savings Accounts     - Duplicate Titles     - FDIC Insurance Rule Change     - S.O.S. America    

With financial fraud on the rise, PBK Bank is committed to continuing its tradition of safeguarding our customer’s confidential financial information.  The trust of our customers is one of the core values upon which this institution was founded.

Ways in which you can help to keep your financial information confidential are as follows:

·        Do not give out financial information such as checking, savings, debit card numbers, credit card numbers, or your social security number unless you know the person or organization you are dealing with.

·        Closely guard your ATM PIN (Personal Identification Number) and ATM receipts.

·        Shred any bank statements or items containing account information before disposing of them.

·        When using online banking services develop a secret password that only you would know.  This ensures that only you have access to your accounts.

By following these steps you can help to protect your identity and your accounts against theft and fraud.

Good morning,

I’m sure that the majority of you all are at least some what acquainted with some form of our Pretty Big Kids club, whether it is our “Senior Reward” checking account, our monthly bingo/birthday breakfast get togethers, or our travel program, etc.  There are probably a lot of you, however, that aren’t fully aware of what all options are available to you when you reach the age of 50.  

Our Pretty Big Kids club is available to anyone who is over the age of 50 and has a banking relationship with PBK Bank.  The club is not exclusive to people who have our “Senior Reward” account (which I will elaborate on a little later).  If you do, however, open a “Senior Reward” account, you will be automatically enrolled into the club.  If you are over fifty and bank with us but have not been enrolled in the club, just stop by one of our offices and ask to enroll.  It’s quick and easy and best of all, it’s free!

Once you are enrolled in the “Pretty Big Kids” club, you will automatically start receiving our quarterly newsletter to keep you posted on the goings on of the club and PBK Bank in general.  The newsletter has information about upcoming events and trips, recognition of our members, upcoming birthdays, as well as other surprises.  You will also receive an invitation to a birthday breakfast, in the month of your birthday, for you and a guest to come and be spoiled with a breakfast made just for our birthday guests.  Also, we have monthly bingo at our Danville office, where you can come have fun, socialize, and win prizes.

Another hallmark of our club is our wide range of travel options.  Each year we take excursions ranging from nearby day trips to take in the local sights, to extended adventures across the globe to satisfy your appetite to get out and see the world.  Whatever your travel preference, we have the trip for you!

Fun stuff aside, there are some other really great perks to being a customer age 50 or better at PBK Bank.  You are eligible for our “Senior Reward” checking account, which is a free, interest bearing checking account, with no “strings-attached.”  There is no minimum balance, no limit on transactions, and a tiered interest rate that pays you interest even if you only have a dollar in the account.  The account also allows you unlimited free checks (one style only), plus all of the other checking account perks like free standard travelers checks, and ATM/Visa debit cards (pending approval).

Last, but certainly not least, we also have some great Certificate of Deposit programs for our customers who are in the 50 plus age bracket.  We offer an eight-month penalty free certificate that has an interest rate slightly lower than our twelve-month rate, but has no penalty for early withdrawal.  And finally, on the week of your birthday, you can open a 12-month “birthday certificate” and have your age added to the regular twelve-month rate (if the twelve-month rate is 4%, and you turn 55, your C.D. rate will be 4.55%).    

I hope that this information has been helpful in informing you about our very popular “Pretty Big Kids” program, and if you are eligible and haven’t signed up, yet, we hope to see you soon!

As you are looking for ways to save money during these tough economic times, you might want to consider one of PBK’s newest free account products: a Health Savings Account (HSA). 

HSA’s are similar to a Flexible Spending account in that you put money away to save for medical expenses not covered by insurance.  Anyone may qualify for an HSA if they are under the age of 65 and have a high deductible health plan (HDHP).  You have an HDHP if your deductible is at least $1,100 (single) or $2,200 (family). The money put in is after tax, however you can deduct up to $2,900 (single) or $5,800 (family) on your taxes—and you don’t have to itemize in order to do so. These amounts are also the 2008 limits of what you can contribute to an HSA. The benefit of having an HSA is that you can roll over any unused amount to the next year, whereas with a Flexible Spending Account, you have to use it or lose it within the year. 

You can use your HSA to pay for prescription drugs, contact lenses, glasses and a whole host of other expenses.  There is a full list of what constitutes as a qualified medical expenses available on the IRS website here. 

Not only is opening an HSA at PBK Bank totally free, but we will actually pay you interest on your balance!  As of October 23, 2008 the APY for balances over $5,000 is 2%, while anything under that is 1%.  It only takes a $100 opening deposit to start your HSA today!

Consult a tax advisor for all tax related issues and concerns.

In order to obtain a duplicate title, you will need the completed application, your picture ID, and either your license plate number or title number.

When you're adding or deleting a person from a vehicle's title due to marriage or divorce, you'll need to bring the title and proof of insurance, the above documents, and any other special documents required. In the event of a divorce, for example, these documents include the divorce decree and property settlement.

If you need to get a duplicate title due to a name change, contact the County Clerk's office about the appropriate documentation to bring, i.e. court order, marriage certificate, divorce decree, etc.

* In the case that the lien boxes are full on the face of a Title, and a lien needs to be placed on the vehicle, a duplicate will be needed.   The original title will need to be surrendered and a duplicate ordered. The fee is $6.00.
 

As most of you have probably heard by now, the FDIC has made provisions to the existing rules.  The limit on the amount of insurance you have has changed recently to $250,000 per qualifying beneficiary as mentioned in a previous post, but the requirement for a qualifying beneficiary has changed as well. The change is meant to “simplify how revocable trust deposits are insured” per www.FDIC.gov. 

You no longer have to have a qualifying beneficiary such as a daughter, son, or family member.  You can list any person, charity, or non profit organization (recognized by the Internal Revenue Service as such) and be insured up to at least $250,000 per beneficiary.

If you have any questions or concerns, we will be glad to assist you.  As always, thank you for banking with PBK Bank.

So, Uncle Sam has decided to loan the banking industry a little bit of your hard earned tax money to help it recover from some of the bad choices it’s made.  It’s been about four years exactly since the public has been so clearly (and evenly) divided over a single issue.  Instead of a 50/50 split, in this case the public is just about evenly 1/3 for the bailout package, 1/3 against, and perhaps the most honest 1/3 pleading the fifth. With all of the rhetoric circulating about this bailout package, it is necessary to offer a little clarification about what it all means to you.  This is not a package intended to save the greedy investors on Wall Street, as some have said.  A better analogy is to compare the United States Economy to the Titanic with Fed chairman Ben Bernanke and treasury secretary Hank Paulson jointly sharing the role of Captain E. J. Smith, trying to save all on board by fashioning a huge life raft out of the passengers’ future tax dollars.  Not exactly the most popular spot to be in but someone has to do it.

While it is certainly a hastily thrown together plan, and there is something for everyone to criticize, whatever your political persuasion, when the ship is going down, decisions and actions must be made quickly and decisively.  Bernanke summed it up like this: “The American economy’s arteries, our financial system, is clogged, and if we don’t act, the patient will surely suffer a heart attack…”

The relevant point to be drawn from this in regards to the bailout package is that it is not an attempt to save Wall Street; it is an attempt to both save the American economy and to concurrently help to keep the greater global economy afloat.  As the saying goes, “when America sneezes, the world catches a cold.”

O.K., so that’s the bad news, so here’s the good news.  First of all, the money that you have in the bank is perfectly safe.  The image of the rampant bank runs from the 1930’s has returned to our collective minds, but the truth is that every dollar that the FDIC ensures is guaranteed and not one person has lost a penny of that ensured money.  I’ve also heard it mentioned that if a bank were to default, it could be forever before that individual recouped that money from the FDIC.  In reality, in most cases the FDIC has your money to you within two business days.  All of this aside, the more important thing to be aware of is the key distinction between the two key types of banks that compose our nations financial system and that when one is in trouble, it doesn’t necessarily imply that the other is in trouble.

The banks failures that have been making headlines have all been investment banks, an entirely different animal from the deposit banks that serve our local communities.  The mindset of the investment bank in recent years has been greed blinded from logic due to the huge returns they were receiving from the real estate boom.  They forgot all about Newton’s law about things that go up.  Your local deposit banks are a different breed.  They know their customers and are more concerned about keeping them satisfied than rolling the dice on a risky investment that could either make them rich or break them if the bottom falls out of the market.  I’m not implying that we are not in it to make money, that is what businesses do, but we are more concerned with stable, long term growth, than a quick buck.

It’s been alleged that this package will cost every single American (not household) $10,000 dollars by the time that the dust settles.  On the surface, this sounds staggering and obscene, but only until it is looked at under two different lenses.  First of all, that figure, the $700 billion ($700,000,000,000.00) accounts for about 6% of America’s GDP, which is less than half of what the average bank crisis costs the economy, and is a trivial amount compared to what the great depression cost us.  Secondly, the package can be viewed as the governments own investment in the resilient American economy; one that Mr. Bernanke and Mr. Paulson believe will yield long term returns.  In other words, Uncle Sam is borrowing from the taxpayer with the tradeoff that the taxpayer will earn a net benefit from the investment.  
 

Turn on the TV, radio, get online, or just talk to anyone and chances are you've heard something about the government bailout that was signed by President Bush this past Friday. Many have strong feelings about the bailout (Emergency Economic Stabilization Act of 2008) both good and bad, but one thing that was added to the bailout on its second run was an increase in FDIC Insurance.

The bailout has temporarily raised the basic limit on Federal Deposit Insurance (FDIC) coverage from $100,000 to $250,000 per depositor. The increase in the limit is already in place. You might have caught the word temporarily as I did when I read the release from the FDIC. The increase in coverage up to $250,000 per depositor as it stands is good until December 31, 2009 at which time it's set to revert back to the pervious limit of $100,000.

So what does this mean for you? If you are like me the $100,000 more than covered my deposits, but now you can have up to $250,000 in an account(s) at one institution (that is covered by FDIC Insurance); and your money will be covered. As mentioned in previous post, you can structure your accounts so that you money can be insured for more than the basic amount. If you have questions about that you can go to the myFDICinsurance.gov as listed in the post below or come in and we'll be glad to talk to you about it as well.

Let me reassure you that PBK Bank; being a community and locally owned bank is in good shape and not at risk of failing, but hopefully the increase in coverage by the FDIC will give some extra peace of mind to you and the rest of America.

With the current changes in the economy there have been many questions as to whether your money is insured and secure.  At PBK Bank, we want you to know, that we will do all that we can to keep all of your assets protected and leave you comfortable about having your money with us.  As most of you know, PBK Bank is FDIC Insured, which means every depositor is insured up to at least $100,000.  You can be insured for more than $100,000. 

To assist you in finding out whether your money is insured or not, the government has created a program which is called EDIE the Estimator.  This program will let you key in your accounts and balances and tell you if you are insured or not.  The website is myFDICinsurance.gov.  You just simply go to the website and click on get started.  Enter your institution and then click on “Add first account” and follow the steps.  Add all the accounts you have at that institution and then you can print a sheet that shows, how much of your assets are insured or not insured. 

As always, if you have any questions, you can call PBK Bank and any one of our Customer Service Representatives will be glad to assist you.  Thank you for you business!

I was recently reading an article talking about some findings from a Consumer Reports article published in its September issue titled State of the Net survey that listed the seven most common online blunders. I feel it is important to learn from our mistakes, and I’ve learned that it’s much cheaper to learn from the mistakes of others.

Over the past two years viruses, spyware, and phishing attacks have cost consumers an estimated $8.5 billion and consumer have replaced over two million computers due to malware infections. So there are reasons for online users to be cautious and to take precautions to protect themselves.

So without further delay here are the seven most common online mistakes:

• Failing to keep antivirus software up to date.
• Clicking on e-mail links to visit financial web sites.
• Only using one password for all online accounts.
• Downloading free software.
• Assuming that Macs are safer than Windows PCs.
• Clicking on pop-up ads that claim your computer is at risk.
• Shopping online without taking extra precautions.
   

The Senate recently passed a tax credit for first-time home buyers intended to help get the housing markets moving again.

The $7,500 credit is for people buying their first homes.  To qualify for the full $7,500, individuals must earn less than $75,000 annually while couples may earn up to $150,000.  Buyers with income of between $95,000 and $170,000 are eligible for a partial credit.

How It Works:

Buyers who have not owned a home in the past three years can take a tax credit worth 10% of the home’s sale price, up to $7,500 whichever is smaller.

The credit is good for homes closed on or after April 9, 2008 and before July 1, 2009 and can be taken on taxes filed during 2008 or 2009.  Even buyers who bought a home before the bill passed, but after April 9, can claim the credit.

Unlike tax deductions, which only offset taxes by lowering taxable income, the tax credit is a straight dollar-for-dollar deduction of your tax bill.  So a buyer who would ordinarily pay $8,000 in taxes would pay just $500.

It’s also “refundable”, which means if a buyer’s taxes are less than $7,500, the government will send them a check for the difference.  For example, if a couple’s income generates a tax bill of $5,000, the government will refund all of that plus $2,500.

Buyers must start paying back the loan within two years, at a rate of no more than $500 a year for 15 years.  When the home is sold, any outstanding balance will be repaid from the profit; if it’s sold at a loss than the difference will be forgiven.

It is not going to provide first-time buyers with cash up front but it will make it easier for buyers to get a loan and less likely for borrowers to default on loans.

The Senate Finance Committee estimates that about 1.6 million people will use the credit.

(Please consult your Tax Consultant for more information.)

If you're buying a car in Kentucky, you need to transfer the title into your name at your County Clerk's office.

When transferring a vehicle you will need to pay usage tax at :       

6% of the retail value of the vehicle

OR

6% of the purchase price if a completed Affidavit of Total Consideration is presented

OR 6% of the purchase price if the back of the new Kentucky title is completed. Also property tax may be required to be paid if it is due or past due.

You will need the following:

• Title (free of any liens)

• Current original proof of insurance from the buyer of the car being transferred

• Application for title/registration (VTR) OR the application on back of the new Kentucky title completed by both buyer and seller    

• Money for applicable fees and taxes

Sometimes special circumstances require a few extra steps when it comes to transferring a title.  You may want to contact the clerk’s office to make sure that you have the correct documents needed.

As you may know we offer a free service through our Internet Banking called Bill Pay. That’s right I said free. Now I know what you are thinking because I used to think the same thing, I don’t know about paying my bills online? Well after I made the leap I would never go back to sitting down with my bills writing the checks out stuffing and licking the envelopes and then burning some gas to mail my payments off. Something just seems wrong to me to have to pay to pay your bills.

With Bill Pay it takes less time to pay bills, I would guess that I could easily pay all of my bills in fewer than 5 minuets from start to finish, and time is money. Plus, I don’t to buy stamps anymore, which seemingly go up in cost every few months. I would think not having to lick the envelope might be reason enough to give Bill Pay a try.

Granted there is a little bit of work setting up your payees at first but after that it’s smooth sailing. All you need to setup a payee is your bill and you’ll be able to find all the information you will need on there. If you need help don’t hesitate to call me, I’ll be glad to help walk you through the steps to get set-up.

There are several features that come along with bill pay. With some payees you can receive your bills electronically and receive an email informing you of your bill. Easier yet, set-up criteria for Bill Pay to follow and automatically pay your bills for you, and yes it will email you for that as well. If you have a monthly payment that is the same each month like a house or car payment, you can use Bill Pay to automatically pay it for you each month.

So who can you pay with Bill Pay? Great question, you can pay virtually anyone! That’s right if you need to pay the electric company, telephone company, the bank, etc. you can do that. If you need to pay the neighbor kid for mowing your lawn or baby sitting for you, you can do that too.

Bill Pay is set-up to send electronic payments (ACH – Automated Clearing House) to larger businesses and for business and individuals that are net set-up to accept electronic payments; Bill Pay will send them a check for you. Don’t worry about your payments being late, because when you are making your payments through Bill Pay it will tell you when you can expect the payment to arrive by.

So stop throwing away your money and time; sign-up for Bill Pay today. Start enjoying this free service and start enjoying your life by not wasting a bunch of time paying bills.