Archive for the ‘ Personal Finance ’ Category

Save for their future…with WooHoo! U!

Who doesn’t want the best for their child or grandchild’s future? You can help them save for their future today by opening a WooHoo! U Youth Savings account for them!

With a 3.04% APY on balances up to $4,999.99, they are getting a GREAT rate until they GRADUATE! But don’t just take our word for it, check out our latest video testimonial from a happy parent!

For full details on our WooHoo! U Youth Savings Account visit our website at: www.citizensmn.bank/personal/savings-and-cds

How Do I Enroll In Online Banking?

Are you wanting to enroll in Citizens’ online banking but not sure how to go about doing that? Check out how easy it is by following the information below!

How do I sign up for online banking?

Go to www.citizensmn.bank and click on “enroll” by the online banking login.

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Fill out the requested information and submit your application. Applications are processed within 24 business hours and login credentials will be securely emailed to you.

Any other questions? Feel free to give Citizens Connection a call at 1-800-549-0194.

Why WooHoo! U?

WooHoo UCitizens Bank Minnesota knows that banking experience at an early age can shape a young person’s financial identity, attitudes and habits in a way that can last a lifetime. Kids learn many things in school, but usually personal finance is not one of them. That responsibility falls on the parents/guardians. Citizens is here to help!

WooHoo! U is a tiered savings account that earns 3.04% APY on balances up to $4,999.99. With WooHoo! U, youth savers will earn a great interest rate and develop sound saving habits. You can learn more by visiting our website at: www.citizensmn.bank/personal/savings-and-cds

Stop in to talk with one of our Client Service Representatives and open your account today!

Introducing MyCardRules

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The power to protect your Citizens Bank Minnesota Debit Card is in the palm of your hand!

Download this FREE mobile app that allows you to conveniently control WHEN, WHERE and HOW your Debit Card can be used!

  • Turn your cards off and on: Misplaced your card? Turn it off until you find it!
  • Get instant alerts: Receive alerts based on the rules you set.
  • Control where and how your Debit Card can be used: Out shopping or on vacation? Set the card to work only where you are!
  • Set spending limits.
  • Plus much more!

 

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Download the app in the Apple or Google Play store TODAY!  

Citizens Referral Promotion

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Starting April 2, 2018 through December 31, 2018, Citizens Bank Minnesota clients will receive their choice of a Citizens 1/4 zip shirt OR $25 Cash when they refer a friend* to open one of the following accounts:

WooHoo! Checking – An Account That Will Make Your Piggy Bank Jealous!

WooHoo! Simple – ATMs Free Is The Way It’s Meant To Be!

Make My Life Easy Checking – The Right Amount Of Checking For Your Everyday Needs!

*By referring your friend, you are acknowledging that the recipient will be aware that you are a client of Citizens Bank Minnesota. A 1099 will be issued for cash received. Offer only valid for WooHoo! Checking, WooHoo! Simple and Make My Life Easy Checking. One reward per household. Promotion subject to change. This promotion runs from April 2 – December 31, 2018. Member FDIC

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Types of IRA’s for Children

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There are two different types of IRAs that are suitable for children: traditional and Roth. The primary difference between traditional and Roth IRAs is when you pay taxes on the money that you contribute to the plan. With a traditional IRA, you pay taxes when you withdraw the money during retirement (at your then-applicable tax rate). A traditional IRA contains pre-tax earnings. With a Roth IRA, you pay taxes when you put the money into the account, so it contains earnings after tax.

The money grows tax free while it’s in either a traditional or Roth IRA. But the benefit of a Roth is that when the child withdraws the money many decades from now, he or she won’t have to pay income tax on it. What’s more, there are no required minimum distributions (RMDs) on the money. Of course, these rules may change in the next 40 years, but that’s where they are now.

If you claim your child as a dependent, he may be required to file an income tax return of his own if his income exceeds a certain amount set by the IRS ($6,300 for 2017). If your child earns less than this amount, she is likely in a 0% income tax bracket and she probably won’t benefit from the up-front tax deduction associated with traditional IRAs.

Because many kids don’t earn enough money to benefit from the up-front tax deduction associated with traditional IRAs, it makes sense in most cases to focus on Roth IRAs. In general, the Roth IRA is the IRA of choice for minors who have limited income and who, therefore, would not benefit from a deductible traditional IRA.

Starting an IRA for your child can be a wonderful thing. At their young age, compounding kicks into high gear due to the long time horizon. And usually they will be in a low, or even zero tax bracket so the Roth is normally the best choice.

If a child keeps [a Roth] until age 59-1/2 (under today’s rules), any withdrawal will be tax free. In retirement, he or she would likely be in a much higher bracket, so  would effectively be keeping more of his or her money.

Benefits of IRAs for Kids

A single $1,000 IRA contribution made at age 10, for example, could grow to $11,467 over 50 years, assuming a conservative 5% average annual growth rate. Contribute $50 each month, and the account might grow to $137,076 (with the initial $1,000 contribution and the same hypothetical growth rate of 5%). Or double the contribution to $100 each month and the account could reach $262,685. As children make more money and eventually become adult earners, their annual contributions are likely to be higher, and the IRA could grow correspondingly. Setting aside money each month or year for an IRA – even if the contributions are small – helps your child develop awareness and healthy financial habits.

Another benefit of IRAs is that your child may be able to tap into the account for qualified higher education expenses and up to $10,000 towards a down payment on a first home without penalty. With a Roth IRA, you can withdraw any contributions, but not the investment earnings, for any reason without tax or penalty.

Information courtesy of: Investopedia.com

Visit www.citizensmn.bank or contact Citizens Bank Minnesota at 507-354-3165 to find out more information about the great rates we offer on our IRA CD’s!  The future starts NOW!

Your Resolution, Your Home

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Is purchasing a new home on your list of resolutions and goals for 2018?  We found this helpful article that has some great tips on how you can reach that goal! Full article

And as always, our team of Citizens Mortgage lenders is only a phone call away if you have any housing questions you need answered – 800-549-0194. More information can also be found on our website at: cbnu.mortgagewebcenter.com

 

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