Skip to main contentor please stop by one of our convenient locations.

Rhinebeck Bank Blog

May 23, 2017

Why Wake Up with Rhinebeck Bank?

Why Wake Up with Rhinebeck Bank? Because Wake Up with Rhinebeck Bank brings you information about our local businesses, communities and local non-profits! We share stories from the very people you see each day! Rhinebeck Bank delivers you important local information that you may not otherwise hear about, in an entertaining way.

Take the show with Rob Rolison, Mayor of the City of Poughkeepsie for example, he told us about his new First Friday initiative to help revitalize the City of Poughkeepsie. First Friday is a monthly celebration of Poughkeepsie's cultural, dining and entertainment offerings with the goal of increasing business and tourism. This is an effort that many people have interest in and would love to learn more about. This is just one example of how Wake Up with Rhinebeck Bank shares incredible content about our community.

We’ve featured a tremendous amount of local guests such as, Michael J. Quinn, President & CEO of Rhinebeck Bank; Marcus Molinaro, Dutchess County Executive; Andrew O’Grady, Executive Director of Mental Health America of Dutchess County; Kim Kenyon, Owner of Gold’s Gym; Brian Doyle, Executive Director of Family Services; Karen Zobel, CEO of the Community at Brookmeade; Michael Arteaga, Owner of Mike Arteaga’s Health and Fitness; Andy Imperati, General Manager of the Dutchess County Agricultural Society; Joe Lepore, President of LCS Companies and many others!

In 2017, continue the journey with us by watching Wake Up with Rhinebeck Bank as we bring you stories from our region’s leaders. Our goal is to help you learn more about the Hudson Valley and to get more involved in our local community. What’s better than supporting the community in which we live?

Find out what our guests have said about Rhinebeck Bank by clicking the link below to our “Customers Tell All Video”:
https://www.facebook.com/RhinebeckBank/videos/1321706057913540/

To watch Wake Up with Rhinebeck Bank visit www.WakeUpRhinebeck.com every Monday morning at 8AM, or follow us on Facebook to find out all of Rhinebeck Bank’s happenings.

If you’re looking for exposure for your business or non-profit and want to be a guest on Wake Up with Rhinebeck Bank please email PR@RhinebeckBank.com! We can’t wait to hear from you!

Michelle Barone-Lepore

SVP, Marketing

Michelle Barone-Lepore - Headshot

Blog Divider - Decorative

 May 16, 2017

What a difference a month can make!

Last month I discussed whether it was a “great time to list your home?” I commented on the lack of inventory coupled with high demand for housing and the dilemma of those factors not forcing an increase in home values. We posed the question of why the law of supply and demand didn’t seem to be in affect in our area.

Well, that question was answered in a resounding way. In a review of the April 2017 sales statistics, our high demand rewarded home sellers with an increase in current average sales price of 25.6%.* This represents a real dollar average increase of $50,483. The current median sales price has also increased by $19,250.* Remember, the median sales price reflects the mid-point of the market, meaning there were an equal amount of sales both above and below that price point. This increase in the median sales price tells us that the increases are not just the result of a handful of high priced sales driving the average, but that the market as a whole is showing improvement.

This is a great sign for our area and for residents who would like to list their home but have been lacking the equity to do so. This increase in sales price also bodes well for future sales that rely on these current “sold comparable homes” that are used by appraisers. Since appraised values are based on the most recent homes sales, the closed sales in April will help support current values.

Only time will tell if this increase will become a trend and not just a one time “blip” on the radar. What I can tell you is that I still consistently hear stories from home buyers, sellers, and realtors that quality homes are receiving multiple offers, above asking price, on the first day being listed. Bidding wars are now commonplace with new homes coming on the market.

It is important to remember that there are always two sides to every situation, and rising home prices, while beneficial to sellers, can be detrimental to some buyers. Once home prices rise to the level where it affects market affordability we will see the ebb and flow of supply and demand begin to move prices against sellers.

Let’s all hope that change does not come soon and we can allow housing appreciation to benefit our homeowners and allow some much needed inventory to enter the market.

*Mid Hudson MLS, April 2017 Sales Statistics

Vincent Aurigemma

VP, Residential Lending

Vince Aurigemma - Headshot

Blog Divider - Decorative

May 9, 2017

Congratulations Graduates

To all the graduates out there – CONGRATULATIONS! Remember how you spent the last four years putting in the hours necessary to succeed? Unfortunately your years of hard work aren’t over.

Wait, what?!

That’s right. Your potential future employer may be impressed that you have worked hard, learned some interesting things, and achieved good grades, but now is not the time to plateau. What most college graduates have is potential, and many employers can see that, but it’s up to you to show them just how much of it you have! This is merely the beginning of your career. It is up to you to prove in your interview that you have those implied skills, and to then put in the work to turn those skills into true value for your organization. You can be anything you want to be, but only if you have the skills to do the job and the drive to succeed.

Once you land a job, establish a professional image from day one. You can do this by being on time every day, finding ways to be proactive, taking pride in your work, helping others do their job well, and growing into your role by learning from your mistakes. Employers need self motivated employees who are dependable, take initiative and who offer ideas and solutions for improvement.

A strong work ethic, honesty, integrity and a positive attitude will help contribute to a successful career in any field.

So again, Congratulations! But remember, your journey has only just begun!

Jeanine Borko

SVP, Human Resources

Jeanine Borko - Headshot

Blog Divider - Decorative

 May 2, 2017,

Regulation D: What Every Customer Should Know

Have you ever received a message, phone call or notice in the mail regarding excessive transactions and Regulation D (“Reg. D”) from your bank? It’s a pretty common occurrence in a world of electronic access to accounts via online banking, mobile banking, debit cards and ACH transactions. So, what exactly is Reg. D and what are excessive transactions?

Reg. D is part of the Federal Reserve Bank’s monetary policy: it imposes account limitations and reserve requirements for non-transaction accounts at all depository institutions such as savings banks, credit unions and commercial banks. The regulation requires that depository institutions place funds on reserve with the Federal Reserve Bank in proportion to the deposit balances in their customers’ non-transaction accounts and limits customer withdrawal activity on these types of accounts.

Let’s break down Reg. D and take a look at how it can impact you:

The excessive transaction limitations for non-transaction accounts within Reg. D apply to savings and money market accounts – these are deposit accounts that are meant to be a source of savings and, by nature, should have little to no withdrawal volume. Reg. D specifically outlines transactions that can be done on a limited basis from a savings or money market accounts and limits any combination of the restricted transactions to six per statement cycle. When the total of restricted transactions processed in a statement cycle is more than six, the additional transactions are known as excessive transactions.

Per Reg. D, the following transactions are restricted to a combined total of only six transactions per statement cycle on a savings or money market account:
• Transfer or payment requests from the account made via online banking (including bill pay and mobile banking), or by telephone, email and fax
• Debit card purchases (POS)
• Pre-authorized transfers, withdrawals or payments to a third party (ACH and wires)
• Transfers to non-loan accounts at the same institution
• Transfers to provide overdraft protection on another account at the same institution
• Checks or drafts made payable to a third party

The following withdrawals can be done in unlimited numbers on a savings or money market:
• In person at a branch location
• ATM (Withdrawal or Transfer)
• By mail or messenger

Depository institutions are required by law to monitor excessive transactions and ensure that customers are not exceeding the imposed limits outlined by Reg. D. Exceeding the allowed transactions on a savings or money market account may result in fees assessed for each excessive transaction processed. If you continually exceed the transaction limitations, your financial institution may reclassify your account type, take away your ability to perform any restricted transactions in the future, or close your account.

Sources:
https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf

Yvette Temple

AVP, Customer Solutions Manager
 
Blog Divider - Decorative

April 25, 2017

Deposit Automation ATMs
What are they, and what are the benefits?

Automated Teller Machines (ATMs) are a staple of modern society. First put into use in 1967 by Barclays Bank in north London, there are about three million ATMs worldwide today. Billions of people throughout the world use these devices to conduct the most basic banking functions. Not only do they provide convenient access to cash withdrawals, they allow customers to check their balances, transfer funds between accounts, and most importantly make deposits.

Depositing cash or checks at an ATM has always been a bit of a hassle. It required filling out deposit slips, inserting the entire deposit into an envelope, manually entering the total deposit amount, and using a complicated interface to complete the transaction. Even worse, customers would need to wait to have these funds available to them.

These issues have been remedied by Deposit Automation ATMs. These machines are outfitted with modern components such as check scanners, cash acceptors/recyclers, deposit processing software and built-in fraud/counterfeit detection. This new technology allows customers to simply insert their debit card, insert their signed checks or cash, and let the machine take care of the rest. These machines are even designed to ask for clarification if they are unable to read a check, allowing a customer to manually enter the check amount if needed. Deposit Automation is allowing banks to drastically improve funds availability and allow for true 24/7 banking. This also reduces the need for customers to speak with a Teller to complete basic transactions. There has already been a dramatic increase in transactions at the new, automated ATMs. By cutting down on the need for in-branch transactions, banks can enhance customer service by allowing employees to spend more time on each customer interaction while providing more options to the customers who prefer quicker or more convenient methods of service.

Rhinebeck Bank is continuing to roll out more Deposit Automation ATMs at additional branch locations this year, as part of our effort to continually expand our self service delivery channels.

Sources:

https://www.bai.org/banking-strategies/article-detail/the-case-for-atm-deposit-automation
 
https://en.wikipedia.org/wiki/Automated_teller_machine

Dawn Scherer

SVP, Operations and Technology

Blog Divider - Decorative

April 18, 2017

Local. Involved. Responsive. What does it mean?

Rhinebeck Bank is a Community Bank; we are a bank that is centered in this community and focused on this community’s growth. We pride ourselves on having the products and services you need for your journey. Our goal is for you to save, your business to grow, and for our communities to thrive. We achieve these goals by being: Local, Involved, and Responsive.

Local.
Rhinebeck Banks believes in the local community. We live local and we know the people here. We have an understanding of the area, the businesses that flourish in our community, and most importantly we know YOU.

Involved.
The Hudson Valley has many charity organizations, volunteer groups and other not-for-profits that work hard everyday to improve our communities. We at Rhinebeck Bank do our part to promote their events, volunteer when they need helping hands, and donate funds because we believe in being involved and supporting these valuable organizations.

Responsive.
We believe your opinions matter. We consistently respond to your wants and needs. We match our products and services to the needs of our local community.

Take the example of one of our customers featured on Wake Up with Rhinebeck Bank, Don Veith of Veith Electric. He certainly knows the value of our service. On Wake Up with Rhinebeck Bank Don said, “I believe you guys brought us to the next level through our line of credit.” With 45 employees with different specializations, Veith Electric handles everything from a small residential repair to large commercial electrical installation. Veith says banking with us feels like being a part of a business family, and he credits his business’ success partly to Rhinebeck Bank and our dedication to quality service.

Michelle Barone-Lepore

SVP, Marketing

Michelle Barone-Lepore - Headshot

Blog Divider - Decorative

 April 11, 2017

ATM Fees: Why do I have to pay a fee to get MY money?

CONVENIENCE: what does that mean to you? In today’s fast paced world convenience is an important factor for many people as they go about their daily routine.

For some, convenience is not the first consideration. Some people may go to a particular gas station for the price or the brand of gas. Some go to a certain grocery store because they like the variety in the store or the meat or produce they can get there.

However, there may be times when convenience takes precedent, such as when your tank is almost empty and you stop at the next most convenient gas station, where the price is a little higher. Or you may just need a quart of milk, or loaf of bread, and stop at the local “convenience” store where you can run in and out instead of into the larger grocery store. In each of these cases you make the decision to pay a little more, if needed, for the convenience. We all make decisions every day based on many factors, some we can plan ahead while others can come up on us unexpectedly.

An example of convenience today is “bagged salad”. People will pay a higher price for lettuce, or a mix of salad greens, that have already been cut, shredded, and washed, in order to avoid preparing their own salad. The extra steps involved in putting together that “bagged salad” add expense to the final product.

So what does all of this have to do with getting MY money from MY account?

Well, think about this: where did you deposit your money? When you go to the financial institution to withdraw your money, do they charge a fee? Granted, there may be fees associated with the type of account you have, but they are normally not tied to withdrawing cash from the account.

The arrival of ATMs in the early 1980s made it very convenient for customers to obtain cash without having to go into their branch (when it was open), write a check, wait on line, see a teller, wait for the teller to process the check and hand you the cash. You could walk up to an ATM (24 hours a day), and access your cash very quickly.

Then, with the growth of ATM Networks, you were able to get YOUR money at virtually thousands of ATMs throughout the country and the entire world, regardless of what bank provided them.

So how does your money get from your account, into your hands at an ATM across the country? It is through an elaborate network of computer software and machines, (including the ATM) that allow for the transfer of the money in your account to the ATM you are using within minutes.

For the convenience of being able to access your money throughout the world, yes there is a fee to cover the expense of that elaborate network.

For those who wish to withdraw their cash from the place it was deposited, there is no fee, even though there is the convenience of access through an ATM at your financial Institution 24 hours a day, 7 days a week.

Robert Foster

Teller

Blog Divider - Decorative

 April 4, 2017

Ever curious about ATM SKIMMING devices and how they work?

ATM Skimming is a con in which criminals install illegal card-reading devices on ATMs, as well as gas pumps and other public machines that process debit cards. You put your card in, and the device "skims" your information from the card's magnetic strip. Many times, scammers also set up a camera nearby. It's pointed at the ATM in order to capture the user typing their PIN into the machine. With these two pieces of information, scammers can potentially gain access to your account.

How it works

The criminal places the skimmer, which is usually made from plastic or plaster and looks very much like the original card reader, directly over the ATM card reader undetectable to the user or consumer. As the users or consumers insert their ATM cards into the false skimmer, their bank account information on the card’s magnetic strip is "skimmed" or stolen and usually stored on an electronic device. A hidden camera is used in conjunction with the skimming device in order to record the customer's Personal Identification Number. In lieu of a hidden camera, a keypad overlay, placed directly over the installed keypad, is sometimes used to record the user punching in their PIN. The skimmer device is placed over the ATM card reader or may be attached to the card swipe device at the door to gain access to the ATM after hours, which are both undetectable to the user or consumer.

Go to the bank.

Although not immune to skimming, ATMs at banks are typically more secure—with their own 24/7 camera surveillance—and better maintained. Machines at convenience stores and other non-bank locations account for the majority of ATM compromises.

According to NYPD Community Affairs Bureau here is HOW TO AVOID BEING SKIMMED:

  • Inspect the ATM, gas pump, or credit card reader before using it. Be suspicious if you see anything loose crooked or damaged, or if you notice scratches or adhesive tape/residue. The original card reader is usually concave in shape (curving inward), while the skimmer is more convex (curving outward).
  • When entering your PIN, block the keypad with your other hand to prevent possible hidden cameras from recording your number. 
  • If possible, use an ATM at an inside location (less access for criminals installing skimmers)
  • Be careful of ATMs in tourist areas - they are a popular target of skimmers
  • If your card isn't returned after the transaction or after hitting "cancel", immediately contact the financial institution that issued the card.
  • Be aware of "Money Trapping", where the criminal attaches a device to the cash dispenser "trapping" the customer's money and retrieves it after the customer leaves the ATM area

To see how EMV Chip Card technology has impacted debit and credit card fraud see our previous Blog by Robert Foster on February 14, 2017.

http://www.nyc.gov/html/nypd/downloads/pdf/crime_prevention/ATMskimmingtip.pdf

To view images and obtain more detailed information on how to spot a skimming device you can visit www.fbi.gov

 

Tonya A McCaughey

VP, Retail Operations Manager

Tonya McCaughey - Headshot

Blog Divider - Decorative

 

March 28, 2017

Blog PhotoGreat time to list your home??

The law of supply and demand is in full swing in the housing market on both a national and local level. Nationally, the Pending Home Sale Index (PHSI) for January 2017 reached its lowest level in a year* and tight inventory is the prime culprit.

Locally, the housing market has seen a steady increase in housing sales. According to the Mid Hudson Multiple Listing Service, the 12 month average for “Closed Sales” of single family detached homes, is up 16.3%. The average for “Pending Sales” is up 19.5%. Conversely, the 12 month average of “New Listings” has decreased by 10.2%. While the lack of new listings has not affected the local market in amount of sales taking place, it has had an impact on sales prices.

Normally, less homes being listed for sale and greater demand is the recipe for higher prices. Locally the median sales price and the average sales price are have both slightly increased by 1.2% and 2% respectively**.

So, why aren’t these sales prices rising faster? Here are a few: Is the market clearing out lower priced foreclosures or short sales. Are prices being held down by a person’s borrowing power based on local employment data? Is it simply that we are not in a full spring market yet and higher priced, quality inventory is waiting to be released into the market? Has the mood of the country changed and given people pause in making larger financial decision such as buying and selling?

The fact is that all of these are having an affect at this time, how much one or more have over others is nearly impossible to calculate without much deeper data to analyze. What we do know from both closed sales and pending sales data along with almost daily contact with local realtors, is that the demand is robust. The constant theme I hear from realtors is “I have lots of buyers and not enough homes to show them”.

The law of supply and demand will have an affect on prices. If the current 12 month trends continue we will continue to see prices rise. This then, has a positive effect on potential listings since values will have increased and people will be gaining equity in their homes. Sometimes this creates enough equity to make it advantageous to sell, creating another listing which can then help fuel the purchase market further.

Is it a great time to list your home? Only you know the answer to that question. But knowing the market trends can certainly help you make the right decision.

* Mortgage News Daily, Feb 27th, 2017

** Mid Hudson MLS, February 2017 Monthly Indicators

Author:

Vincent Aurigemma

VP, Residential Lending

Vince Aurigemma - Headshot

Blog Divider - Decorative

March 21, 2017

To Lease, or Not to Lease

There are so many ads on TV enticing you to come in and lease that new car for $199 per month or that new truck for $349 per month, how can that be?

Well, just look at the fine print.

Sometimes there are some crazy deals out there but more often than not, those ultra-low lease payments can require as much as $5,000 for a down payment! It’s what’s referred to as a Capitalized Cost Reduction. In addition to the large down payment, it’s often a ten thousand mile per year lease and it’s always “not including tax, tags and fees, etc.” so you may need to put down a good chunk of change plus tax and fees to get that low payment.

Usually there is an acquisition fee in the beginning and a termination fee at the end so be very careful!!  We see it all the time, people trying to finance the car at the end of the lease as they owe the leasing company so much money in over mileage fees! Unfortunately, they just did not pay attention to the mileage restriction of 30,000 total miles on the vehicle in 3 years, often so many people around here put 15 to 20 thousand miles per year on their cars, or more.  It’s important to know how many miles you average per year.

Another important thing to keep in mind even if you are tempted to put the money down to get the low payment, it may be a wise choice to keep the money in the bank, take a larger payment and if you need to, withdraw the money to subsidize the payment. One thing many people do not realize, if you total that car, your insurance company will pay off the leasing company but you will not get any money back, any money you use as a down payment on a lease is not equity for you, it only reduces the monthly payment, you don’t own the car. On a lease, the leasing company owns the car, you are only the registered owner, so if you put down $6,000 for a “cap cost reduction” on a lease and the next day the car was totaled, your $6,000 is gone! On a purchase, the insurance company would pay off the loan and give you the difference.

Food for thought, always read the fine print! Be CAREFUL!!

(This blog post is for educational purposes only)

Vince Lobosco

SVP, Consumer Lending

Vince Lobosco - Headshot

Blog Divider - Decorative

March 7, 2017

Interview_PictureRhinebeck Bank - Your Community Bank

I am often asked, why should I bank at Rhinebeck Bank?

Upon reflection, I have distilled my response to a few key points:

  • We are a Bank that shares your commitment to the COMMUNITY; the success of Rhinebeck Bank is tied to the fortunes of our local economy. As our local businesses and residents succeed and prosper, the more our bank can benefit. Our employees live locally, our loans are made locally, we are invested within our community.
  • Our decisions are made LOCALLY; Rhinebeck Bank has face to face relationships with our clients, large and small. When decisions are being made, they are being made by people who understand the local needs with personal knowledge of the market and individuals involved.
  • The services provided are the same (or better) than those provided by the larger institutions. All banks have evolved to meet the needs of their clients and have developed multiple access points whether by electronic means or in person, all offered at much more affordable pricing at a Community Bank.

In summary, if you are interested in a Bank that employs local people, is invested in the local community and makes sound decisions by people who live and work locally and are committed to the success of the local economy, then Rhinebeck Bank may be the best choice for you.

Richard J. Kolosky

SVP, Commercial Lending

Richard J. Kolosky - Headshot

Blog Divider - Decorative

February 28, 2017

Interview_PictureHow to Prepare for an Interview

Maybe you are interviewing because you just graduated from college. Maybe you are interviewing because you want a career change. Maybe you are interviewing because you were recently laid off. Whatever your reason, interviewing for a job can be stressful. You can help calm your nerves with the motto “Be Prepared”.

Here are some tips on how to be well prepared for your next interview:

  • Research the company. This will give you an overall picture of the company as well as help you stand out as a well-prepared candidate.
  • Print multiple copies of your resume and bring them to the interview. DO NOT assume your interviewers (and there may be more than one) will have copies.
  • Know the job requirements and be prepared with examples that demonstrate how your skills and qualifications meet those job requirements.
  • Prepare questions. The best questions often come from listening to what is asked during the interview, and asking for additional information. It also gives you the opportunity to find out if this is the right place for you.

Try to be the most professional version of yourself during your meeting and try not to let your nerves get the best of you. While you may think you want this job for a variety of preconceived reasons, the interview is your time to make sure this is the right position/fit/company for you.

Jeanine Borko

SVP, Human Resources

Jeanine Borko - Headshot

Blog Divider - Decorative

February 21, 2017

The Downfall of the CheckSample Check Image

A consumer need for convenience, increased regulation, and numerous advances in technology have all contributed to the drastic changes in check handling by the banking industry since 9/11. Prior to these changes, the only way to clear checks taken as deposits at bank branches were to physically transport them by plane, armored car or truck from the bank of deposit to the nearest Federal Reserve Branch. The checks were then sorted, and transported to the bank they were drawn on to post. The total check clearing process could take at least five business days! Writing checks is quickly becoming obsolete: almost all non-cash transactions are now done electronically through ACH, debit, and credit card transactions. In fact, in 2015, only 12% of non-cash transactions were made by check – this is a 34% decrease in check payments since 2003!

So what exactly has led to the demise of the paper check?

Let’s start with how you get paid by your employer. Gone are the days when you had to physically bring a paycheck to the bank to deposit it. Most people today get their paychecks via an ACH transaction called Direct Deposit; even Social Security and pension companies distribute monthly funds this way. ACH stands for Automated Clearing House, an electronic network enabling funds transfers between financial institutions.

And when was the last time you actually wrote a check to pay a bill or make a purchase? If you have physically written a check and mailed it recently, did you get a copy of it in your monthly statement or did it show up as an ACH debit with the check number referenced in your transaction history? These processes are a part of a federal regulation called Check 21. In October, 2004 the Check Clearing for the 21st Century Act (Check 21) was signed into Federal law. Check 21 enables banks to convert checks into electronic copies (substitute checks) for faster clearing time – eliminating the need for the physical transport of checks between banks and reducing clearing time by several business days in most cases. Not only is ACH used for direct deposit and check conversion, it is also the process that allows you to make payments for your car loan, mortgage, credit card, insurance or utility bill by phone, through your computer, or with an automatic transfer. Financial services such as Bill Payment and External Transfer continue to evolve and grow using ACH transactions, allowing you to pay your bills and other people electronically.

Although it’s involved in the processing of many transactions, ACH only accounts for about 20% of the overall non-cash transactions occurring every day. The overwhelming majority of non-cash transactions today are done with debit cards. In fact, overall debit cards usage has increased proportionately from 2003 to 2015 as check writing decreased: In 2003, only 19% of transactions were made by a debit card and by 2015 usage had increased to 48%! Debit cards have quickly replaced checks because of ease of use, convenience and worldwide acceptance. Unlike writing a check, using a debit card allows the funds to be deducted from your account immediately at the time of transaction, making it less likely to overdraw your account. Your transaction may not be approved if there aren’t sufficient funds in your account to cover it.

Innovations in technology through services such as Apple Pay, Google Pay and other wallet-type applications have made it easy for consumers to use their cards for every day transactions. Debit cards, like their credit card counterparts, are also backed by the card issuer (VISA or MasterCard), limiting your liability and increasing protection against fraudulent or unauthorized purchases. The newest EMV Chip cards have additional technology to counter the recent rise in counterfeit card activity as well.

As changes in technology continue to take place, it will be interesting to see if the trend of declining check usage continues and how other innovations may step in to replace what was once the only non-cash method of payment.

Sources:

https://www.frbservices.org/files/communications/pdf/research/2013_payments_study_summary.pdf

https://www.federalreserve.gov/newsevents/press/other/2016-payments-study-20161222.pdf

https://www.fdic.gov/consumers/assistance/protection/check21.html

Author:

Yvette Temple

AVP, Customer Solutions Manager

Blog Divider - Decorative

February 14, 2017

EMV CHIP Cards, Why?

Rhinebeck Bank recently issued new MasterCard® Debit cards with new “Chip” technology. These cards are also referred to as EMV Cards, for the original developers Europay, MasterCard® & Visa®.

EMV began to be used extensively in Europe in the early 1990s. In 2011 the leading payment networks in the U. S. announced plans to transition to EMV technology, for both Debit and Credit Cards, by October 1, 2015. On that date liability for fraudulent transactions shifted to any entity that had not implemented the new EMV technology. Due to the expense involved in purchasing new terminals and issuing new cards many merchants and banks did not make the change by the target date of October 1, 2015. This, however, did not affect customer’s ability to use their cards, nor did it affect the consumer’s rights under regulations and network rules regarding liability for fraudulent transactions.

What is EMV and why the change?

EMV is an advanced technology where the information for each transaction is stored in the chip on the card. This information is dynamic (changing for each transaction) rather that static (remaining the same) as on the magnetic stripe on the back of cards. Magnetic stripe data is easier to copy using a simple and inexpensive card reader device, while the information on the chip changes for each transaction making it more difficult to create fraudulent cards.

As the transition to EMV cards has progressed throughout the U. S. there has been a notable decrease in counterfeit card fraud. The following statistics, recently published by the American Bankers Association, show the progress that has been made in EMV card use and combating fraud.

Consumer Use Up

Financial institutions have issued over 700 million chip cards in the U. S. market, more than in any other country in the world. Since October 1, MasterCard® and Visa® have increased the number of EMV cards by over 100%, and chip transactions were up 30% in the first quarter of 2016.

Merchant Use Up

Almost 36% (2.3 million) of U. S. merchants now accept MasterCard® chip cards, with an average of 100,000 new merchants becoming chip-ready each month.

As previously mentioned EMV cards began to be issued in the early 90s in Europe and the vast majority of merchants in Europe no longer accept cards without the EMV Chip.

Fraud Down

Counterfeit card fraud has declined by over 54% in MasterCard EMV enabled merchants as of August 2016.

It took France four years to see a 91% drop in counterfeit fraud after shifting to EMV in 2005. The U.S. is growing at more than twice that speed with counterfeit fraud falling an average 50% between April/May 2015 and April/May 2016.

So after a slow start in the U. S. EMV cards are catching on, with reduced counterfeit fraud definitely being realized. While the recent re-issue of Debit Cards may have caused some minor inconvenience for our customers we, at Rhinebeck Bank, are certain that reduced fraud, and international acceptance of EMV cards are features that will be of great benefit to our customers.

Author:

Robert Foster

Teller

Blog Divider - Decorative

February 7, 2017

Will the Real Jane Doe Please Stand Up?

We’ve all heard of identity theft. But what is the meaning behind the term? Are there any warning signs that it’s happened? What needs to be done if it does happen?

The short answer is that identity theft is a crime. Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for their own financial gain.

Many people do not realize how easily it is for criminals to obtain our personal data without having to break into our homes. Protection of personal information must be a top priority for all of us. It is important to recognize the warning signs of identify theft.

The Federal Trade Commission’s website lists several Warning Signs of Identify Theft.

Some clues to be aware of are:

  • You receive notice that your information was compromised by a data breach at a company where you do business or have an account.
  • You find unauthorized bank and/or credit card account transactions.
  • You are receiving bills for accounts you didn’t open.
  • You are not receiving your bills or other mail.
  • Debt collectors are calling you about unknown outstanding debts.
  • You find unfamiliar accounts or inquiries on your credit report.
  • You find medical providers billing you for services you did not use.
  • The IRS notifies you that more than one tax return was filed in your name, or that you have income from an employer you don’t work for.

In the event that you encounter any of these warning signs or if your wallet, social security number, or other personal information is lost or stolen, there are steps you can take to help protect yourself from identity theft.

While there are many paid resources available, there are also FREE resources available to everyone. The US Government provides information and resources to help identity theft victims through the maze of recovery.

For more information on identify theft visit the Federal Trade Commission (FTC) website at: https://www.consumer.ftc.gov/topics/identity-theft

If you find yourself a victim of identify theft visit FTC website to obtain a recovery plan at: https://www.identitytheft.gov/

Author:

Tonya A McCaughey

VP, Retail Operations Manager

Tonya McCaughey - Headshot

Blog Divider - Decorative

January 31, 2017

EMV Chip Security: Facts you should know

So you have a fancy new chip in your Rhinebeck Bank debit card, and now your transactions at the store are taking a bit longer than before. What’s going on, and why do you need this? The chip uses a more advanced technology, called EMV. EMV stands for EuroPay, MasterCard®, and Visa®. Here’s why the new EMV technology is important:

To understand how we got to this point, let’s first look to the past. When was the last time you listened to your favorite song on a tape player? The cassette tape was developed in the 1960s, around the same time magnetic strip credit cards appeared. As a matter of fact, the core technology of magnetic strips was developed in 1928. Because of this, it’s easy and cheap for fraudsters to steal your information and use it fraudulently.

EMV chips, on the other hand, are extremely difficult to clone. When the chip is inside the payment terminal, a secure and encrypted communication takes place between the store and your bank. While the transaction time at a terminal may be a bit longer, you are getting a significantly more secure transaction.

The real question is, why do we still use magnetic strip technology for some transactions? Simply put, it works well and most businesses have the ability to accept it. Development of the technology and new EMV hardware comes at a cost for processors, banks and merchants. Phase one of the US migration, getting chip cards into the hands of consumers and having large merchants ready to accept them, is coming to a close; phase two, acceptance and adoption, is now in full swing. Getting banks, merchants, and processors to switch to a new technology takes time and can be costly, but the consumer ultimately benefits from a more secure transaction.

This technology is going to grow over time. While right now it may seem like an inconvenience, Rhinebeck Bank’s goal is to keep your money and information safe. Many countries around the world have already made the switch to EMV. The US is one of the last countries to make the switch, and businesses and banks all throughout the country are working together to make chip cards the new standard. Protecting consumers’ money is a top priority. The next time you have to wait an extra 10 seconds at the store, keep in mind what that little chip is doing for you.

Sources:

Magnetic Strip Credit Cards - https://en.wikipedia.org/wiki/Magnetic_stripe_card

Compact Cassette - https://en.wikipedia.org/wiki/Compact_Cassette

Chip Card Security: Why is EMV More Secure - https://squareup.com/townsquare/why-are-chip-cards-more-secure-than-magnetic-stripe-cards

Why America has been slow to adopt modern credit-card technology - http://www.economist.com/blogs/economist-explains/2014/10/economist-explains-18

Six months after the US EMV liability shift, where do we stand? - https://www.mobilepaymentstoday.com/articles/six-months-after-the-us-emv-liability-shift-where-do-we-stand/

Dawn Scherer

SVP, Operations and Technology

Blog Divider - Decorative

January 24, 2017

New Years Job Resolutions

Many of us make personal New Years resolutions. Exercising, eating better, spending more time with friends and family are popular resolutions we hope to keep in order to improve our personal life. But how about making resolutions for our work life? We spend a large percentage of our time at work, so why not make resolutions to improve the job we do?

Learn. Learn something new every day. It does not have to relate to the exact job you are doing at a particular time. Learn something about the company, what your manager does, technology that can help you be more efficient, or read more. Commit to expanding your knowledge base.

Excel. You are at work to do a job so why not do it to the best of your ability? Ask for clarification if you do not understand a directive, always double check your work, offer assistance if you have down time. Be accountable for your work at all times.

Reach. Think about how you can go above and beyond and then seek the opportunity to do so. Be proactive and make suggestions. Be ready with a plan to implement change.

Be Positive. So much can be overcome by having a positive outlook. Project a positive image and energy. It will help get you through “those” days and could very well be contagious.

Best wishes for much success in 2017!

Jeanine Borko

SVP, Human Resources

Jeanine Borko - Headshot

Blog Divider - Decorative

January 3, 2017

Think About the Term

When it comes to buying a new car, many people ONLY look at the monthly payment. They don’t always pay attention to the price of the car or how much that car may cost in total. happy cutsomer - graphic

Here is an example:

You are looking to buy a new car and looking to finance $25,000.00. You tell the dealer you would really like your payment to be around $400.00 per month. You know you have good credit so getting approved won’t be a problem.

The dealer then comes back and says we can finance the car for $363.90 per month. Sounds great! Right?

The deal they presented to you would be for 84 months at an interest rate of 5.89%. The total cost after you’ve made all the payments is $30,567.60.

But… what if you ask about the term and figured you could pay just a little more per month. After all, you were thinking about paying $400 per month when you started. The same loan for 72 months at a rate of 4.99% is $402.51 per month. Yes, it’s almost $40.00 more per month, but the interest rate is almost an entire point less. After you make all the payments, the total cost would be $28,980.72 with a savings of $1,586.88. Just for paying an additional $38.61 per month you saved a year of payments and almost $1,600 in interest.

If you’re the type of person who stops everyday for coffee… buy two less cups of coffee per week and you’ll have your additional $38.61 per month for your payment. Just food for thought, I always recommend to anyone who asks, take the shortest term possible that you can live with. You probably won’t notice that ten dollars a week but in the end, you will have saved a nice chunk of change.

(This blog post is for educational purposes only)

Vince Lobosco

SVP, Consumer Lending

Vince Lobosco - Headshot

Blog Divider - Decorative

December 27, 2016

First Impressions

Most of us have heard the phrase “You never get a second chance to make a first impression.” This is especially true during a job search.

Your resume is usually the first impression you will make on a potential employer. I am amazed that in our technology driven world, so many resumes are submitted with typos or errors. One recent resume I received included years of employment “20o9 to 2015”. How did that error even happen?!? If the first work product you show to an employer has errors, what does that say about the work you will produce for them? Not much.

With many applicants applying for the same job, it is important to make yourself stand out. Make sure your resume is visually appealing. The font should be consistent, the words should be spaced evenly on the page and it should fit on one page if you have less than 10 years of work experience. And of course it should detail WHAT you did and HOW you did it.

Before finalizing your resume read it out loud, run it through spell check, give it to someone to proof read (teachers are great at this.) Ask yourself “Am I proud of this document? Does it reflect who I am as a potential employee?" After all, that is the story your resume tells.

P.S. – A firm handshake and good eye contact never hurt a candidate’s chance either.

Jeanine Borko

SVP, Human Resources

Jeanine Borko - Headshot

Blog Divider - Decorative

December 20, 2016

Shop smart - don’t let criminals get your personal information this holiday season!

As many of you know, there are criminals out there looking to get your personal information and steal your money. There are dozens, if not thousands, of people illegally attempting to steal your identity, obtain access to your gift cards, or fraudulently access your money in many different ways. Don’t be a victim this holiday season!

Here are 7 ways to protect yourself this holiday season:

1. Only purchase from reputable online sites and sites you frequently use

  • Use an online retailer that you know is secure. Sites that have a secure shopping cart and that you’ve used before may be your best bet.

2. Keep an eye on your Credit Card and Bank accounts

  • Make sure you check your statements online when you make purchases to verify the correct amounts.
  • Check them weekly. Even if you don’t make purchases, see if other charges are being made
  • If you have a question about a purchase, even if it’s a small purchase, call your Bank or Credit Card company and ask questions.

3. Make sure your Gift Card scratch off area is still intact

  • If the gift card scratch off is “scratched off,” money on the card may be missing. Hackers can drain your gift cards with the codes placed under the scratch off area. Make sure your gift cards have not been tampered with before you purchase them.

4. Look out for fake charities

  • Make sure you know who you are donating to. Some online charities may not be charities at all. Research the charity before you donate, make sure the link you use to donate is on their website. Ask yourself, does this look like a reputable charity?
  • Call and ask questions. If the charity does not have a phone number, it may be best not to donate.

5. Beware of package theft

  • With the rise in online shopping, there’s a rise in package theft. Make sure there is someone home to carry your package inside upon arrival.
  • If you don’t receive your package on the scheduled date, call the company and make sure it’s still on time for arrival.
  • If you have the means, get a camera for your door step to see the activity happening outside your door.

6. Change the passwords to your online accounts, especially your Bank accounts, frequently and make the password complex

  • This was stated in a recent blog post from us at Rhinebeck Bank. It’s always best to change your passwords monthly. This will help prevent your account from being hacked.

7. Don’t respond to pop-up advertisements

  • These may take you to a site where hackers can take your information. Certain links that you click can leave your computer and information vulnerable. Don’t get click happy. Only click on links you feel are secure, if you’re unsure, don’t click.

This year use these methods to protect yourself and leave yourself with less risk! Good luck and happy shopping from all of us at Rhinebeck Bank!

Author:

Michelle Barone-Lepore

SVP, Marketing

Michelle Barone-Lepore - Headshot

Blog Divider - Decorative

December 13, 2016

Even in the age of technology, balancing your checkbook regularly is still a smart thing to do!

Over the course of any given month there are dozens of transactions going in and out of your checking account: direct deposits posting from your employer, your mortgage or rent, utility bills, car loans, insurance and other payments are withdrawn. There are also groceries to buy, dinners out, a gas tank to fill and perhaps a trip to the movies or shopping online. Do you know the true balance in your account before you spend money or do you just wing it?

Balancing your checkbook at least once a month can help you:

  • Track your spending and budget easily
  • Catch unauthorized transactions or errors with regular monitoring
  • Avoid overdrafts by always knowing what you have available to spend

So how exactly do you balance a checking account?

1. Start with a checking account register – it’s a little booklet that has lines to write what was spent or deposited and includes an area to write the check numbers, dates and amounts of each transaction you perform.

A running balance is kept after each transaction to track what is available to spend. A register is usually included with your check order. Many banks also make them available upon request for customers as well. Every transaction processed on your account should be recorded in your register:

2. Each month, you should receive a statement of account activity from your bank which can be used to balance your checkbook. You can also balance your account with the transaction history available within Online Banking.

3. Compare the transaction listing to what you have recorded in your register. Many people use checkmarks to indicate what has posted or cleared to easily spot anything outstanding or unpaid. Add in any missing deposits, including interest earned credits and subtract out any payments, checks and debit card transactions that aren’t recorded into your register. If you find any errors, contact your bank immediately to notify them of the discrepancy. Should you find any fraudulent transactions, you have 60 days from the date of your last statement to dispute them. You should note the amount of any errors in your register and adjust your balance accordingly.

4. On a separate piece of paper, or using a calculator, start with the ending balance of your statement. (You can also use the available balance as shown within Online Banking.) Add in any deposits from your register that haven’t posted to your account yet and subtract all checks, payments or other withdrawals that are still outstanding or unpaid by your bank.

5. Your final total should match the last balance in your register. If it doesn’t, go back and compare the transactions again to find any differences. If you are still having trouble finding the same balance, stop in or call your bank for help.

Yvette Temple

AVP, Customer Solutions Manager
 
Blog Divider - Decorative

December 6, 2016

5 Tips to Improve your Online Security

The Wall Street Journal reported that financial institutions are projected to spend $2.6 billion more on cybersecurity in 2016 than they did in 2014. In addition to your bank’s security efforts, there are a few things you can do to help keep your accounts as secure as possible.

1. Avoid using public Wi-Fi to access sensitive accounts – Free Wi-Fi at Starbucks is great to check Facebook or LinkedIn, but avoid using it to access your financial accounts. Anyone connected to the same network can see your login information, making it easy for hackers to access your accounts long after you finish your coffee.

2. Create complex, unique passwords (and change them often) – You’ve heard this advice countless times for good reason – your account is only as secure as you make it. If you use the same password for all your accounts, it’s safe to assume that once one of them is compromised, ALL of them are compromised. Check out this article from The Telegraph (http://www.telegraph.co.uk/technology/2016/01/26/most-common-passwords-revealed---and-theyre-ridiculously-easy-to/) to see the 25 most common passwords of 2015, how to create a more secure complex password, and what hackers do once they have one of your passwords.

3. Check for abnormal activity often – Every few days, check your recent transactions to make sure all activity on your accounts is legitimate. If you see anything abnormal, report it right away. Check with your financial institutions to see what fraud you’re liable for – many credit cards will cover fraud liability as long as you report the transaction as fraudulent within a certain amount of time. Every financial institution’s policy is different, so it’s important to stay informed of how long you have to report fraudulent activity, and check in on your accounts accordingly.

4. Sign up for alerts – Many financial institutions have the ability to text and/or email you if they see something strange on your account. This should not replace your checks for abnormal transactions, but your bank may detect something strange before you do. Rhinebeck Bank’s online banking offers alerts for failed sign-on attempts, password changes, and low/high balance alerts. Additionally, all customers are automatically set up with alerts for mailing address changes, email address changes, phone number changes, and “forgot username” accessed. Check with your financial institution to see what alerts they offer.

5. Avoid clicking on links in emails (even if it looks legit) – Spammers have wised up, and have the ability to send emails that look like they’re from a company you do business with. This is called phishing. Just like your bank will never call you and ask you for your account information, it will never email you asking you to reply with sensitive information. Best practice is to type in the URL yourself, and avoid clicking links sent to you through email.

Sources:

http://www.wsj.com/articles/financial-firms-bolster-cybersecurity-budgets-1416182536

http://www.telegraph.co.uk/technology/2016/01/26/most-common-passwords-revealed---and-theyre-ridiculously-easy-to/

Dawn Scherer

SVP, Operations and Technology

Blog Divider - Decorative

November 29, 2016

Express Business Loans Graphic

Rhinebeck Bank’s Offer - Express Business Loans

Have you heard? We’re offering an Express Business Loan with a credit decision within one business day. If you have a company that requires new equipment, this loan is exactly what you’ve been looking for. You can increase your productivity through this loan by purchasing the vehicle or equipment you need.

Some examples of vehicles and equipment we finance include: cars or trucks, plows, landscaping equipment, restaurant equipment, dental equipment or almost any type of equipment for your small business.

We’re proud to say that this loan not only has very low interest rates, but we will also waive the document preparation fee (for applications received before March 31, 2017.) These are just two perks out of many! Other highlights from our Express Business Loans include:

  • Loan amounts up to $250,000
  • Credit decision within one business day (for applications received before March 31, 2017)
  • Available for new OR used equipment purchases
  • Available for business vehicle purchases
  • Minimal paperwork

Here at Rhinebeck Bank we strive to make the process seamless. If you have any questions or are interested in applying for an Express Business Loan, please call us at 845-454-8555, option 3. For more information, please visit:

https://www.rhinebeckbank.com/BusinessBanking/ExpressBusinessLoans.aspx

(Member FDIC, All loans subject to credit approval)

Author:

Michelle Barone-Lepore

VP, Marketing

Michelle Barone=Lepore - Headshot

Blog Divider - Decorative

November 22, 2016

Will Bank Branches Disappear?

The first Automated Teller Machine (“ATM”) in the U.S. opened in New York City on September 2, 1969.This original ATM was designed to dispense cash when a valid plastic card was used. By the 1980’s ATMs became widespread, handling many transactions that human bank tellers could perform. ATMs went on to revolutionize the banking industry.

Many in the banking industry believed that ATMs would eventually eliminate the need for human tellers, and eventually the need for bank branches themselves. In the 1980’s, On-Line Banking was introduced, and with the introduction of smart phones in 2007 Mobile Banking began to take off.

With all of these ways to transact business on your accounts, there are some questions as to whether the traditional bank branch will soon disappear. According to one survey*, more people bank on a computer or smart phone on a weekly basis than go to a bank branch. This would suggest that the bank branch is on the same path as the dinosaur. However, a survey conducted with data from the FDIC shows the number of commercial bank branches as of the first quarter of 2016 has declined only 5% since 2009.*

All that being said, what about bank branches in the Mid-Hudson Valley? In Dutchess County the number of bank branches (commercial and savings) as of 6/30/16 has increased 3.41% over the 6/30/06 number. The number for Dutchess, Orange, and Ulster counties combined for the period is a 7.91% decrease.*

What about Rhinebeck Bank? Rhinebeck Bank currently has 11 Full Service Branches, 9 in Dutchess County and 1 each in Orange and Ulster counties. The most recent opening was in Goshen in May of 2016. As a local community Bank, we see the importance of having branch locations. Here, our customers can conduct business with a financial professional, whether it is a simple cash transaction with a teller, or a complex transaction where a face to face meeting with a Banker would be helpful.

While the traditional bank branch may not be what it was 10 to 20 years ago, we at Rhinebeck Bank believe it remains vital to providing the kind of service we feel our customers deserve and want.

As a Teller with Rhinebeck Bank, I enjoy interacting with our customers. We have many customers who depend on us on a regular basis, such as our commercial customers who visit our branch every day, and consumers who prefer to do their business in person on a weekly basis. We do have ATMs, Debit Cards, On-Line Banking and Mobile Banking for those who wish to conduct business in this manner. However, we enjoy seeing our customers in person. So, if you haven’t been to your local branch in a while, come on in and say hello. We would love to see you

*Source: FDIC Summary of Deposits, published 9/30/16

https://www5.fdic.gov/sod/sodInstBranch.asp?barItem=1

Author:

Robert Foster

Teller

Blog Divider - Decorative

November 15, 2016

Beware! If it sounds too good to be true... it probably is!

Have you ever received a phone call and wondered if it might be fraud? For instance, someone claiming to be a representative with Microsoft saying your computer has viruses? Or maybe, a call from the IRS saying you owe them money and if you don’t pay you will be arrested? Have you recently received an email or letter saying that you are the lucky winner of a lottery?

If you answered yes to any of these questions, you are not alone. The Federal Trade Commission reports that criminals are using clever schemes to defraud millions of people each year. These schemes often combine a variety of techniques to get people to send money or give out their personal information. Criminals are using a variety of methods such as phone calls and emails, along with the use of sophisticated technology, all in an attempt to obtain your private personal information. They then use that information to commit fraud. Callers may claim to work for a company you trust, or claim to be calling on behalf of a loved one. People need to remain vigilant to protect themselves. Anyone receiving calls or emails should never give out their personnel information to anyone over the internet or phone. Your Bank will NOT call you and ask for this type of information! If there is any doubt as to the legitimacy of the phone call or e-mail, you should verify the validity of the call by contacting the business using a publicly listed phone number.*

If you find you are the target of one of these scams, the scammer is counting on you to keep the information to yourself. It is important to tell someone. Whether you decide to report the incident to law enforcement or a federal agency such as IC3 (Internet Crime Complaint Center) you should still share with others to get the word out. So, share your story with your friends and family who will then share with their friends and families. The more we share, the more aware we will all be.

Check out these government websites for more information:

Source: *https://www.consumer.ftc.gov/scam-alerts

Report an internet crime here: https://www.ic3.gov/default.aspx

Author:

Tonya A McCaughey

VP, Retail Operations Manager

Tonya McCaughey - Headshot

Blog Divider - Decorative

November 8, 2016

Don't Just "Fall" Into Your Career

Whether you are a high school student looking for your first job or a seasoned professional looking to make a job change, you should remember your career path is up to YOU. Many candidates take a position because it was offered. Just because a position is offered to you does not mean you have to take it. Ask yourself these questions:

1. Do the job duties match my learning/career objectives?

2. Does the management style complement how I work best?

3. Will I get along with my co-workers?

4. Are the salary and benefits competitive?

Do some research to make sure the position is the right fit for you. Speak to people who work(ed) at the company, search the internet to find information and ask the hiring manager some follow-up questions.

Most of all remember – you are your biggest career advocate. Your new employer will spend many hours training you and you are making a major life change. Realizing two weeks or even worse, two months later that the position is not a match can be frustrating to both you and the employer. It is in the best interest of both you and the employer to make sure this is the right job for you, so do your research and make an informed decision.

Author:

Jeanine Borko

SVP, Human Resources

Jeanine Borko - Headshot

Blog Divider - Decorative

November 1, 2016

Predicting the Mortgage “Weather”

Let’s face it; The Weather Channel© has changed all of our lives. We watch live minute to minute updates of weather patterns and storm fronts. Experts try and predict events for the next half hour to the next 10 days, to years in the future. They consider longer term cause and effect (El Niño comes to mind) to try and identify what type of seasonal weather we will have. We need the forecasts to help us plan our day, month, and season. Do we bring an umbrella today? Do we buy a new snow blower? When should I plant the tomatoes?

They do this by gathering and analyzing incredible amounts of data. Trying to determine how each piece of information corresponds to the other.

All industries look to perform a similar type of forecasting, and the mortgage business is no exception.

We need to analyze and review incredible amounts of data (employment statistics, stock market prices, bond yields, political races, world events, and so on) and what affect it will have on rates, housing prices, new home sales, and construction, to name just a few.

We need to forecast to help run our business in the most effective and efficient manner. Will home sales be strong? What staff increases do we need to make in order to maintain our processing speed? How do we adjust sales and operations expenses? How will a changing rate environment affect application volume? I like to think of “what will the interest rate be tomorrow” as akin to “should I take an umbrella” and “what will the housing market look like in 2020” with “will we see El Nino in 2020”.

So let’s take a look at one specific piece of long term forecasting: how can we predict the First Time Homebuyer (FTHB) market in 2020?

Studies performed by Zillow® show us that the average age of a FTHB is approximately 33 years old (increasing), 40% are single (decreasing), and they are spending approximately 2.6 times their annual income on homes (increasing).

If we look at the US Census data from 2012, the US had 20,893,000 people who were ages 25-29. This means that today they are between the ages of 30-34. This is the prime FTHB age group.*

Reviewing the next two age groupings from the 2012 census, we would now have 21,878,000 individuals in the 25-29 age range and 21,239,000 in the 20-24 age range. These numbers would indicate that our FTHB applications should continue to be strong over the next 8 years. We could go much further to hone in on a more specific target number of FTHB applications, but I believe you get my point.

The most scrutinized aspect of the mortgage world is the rate environment. The overwhelming winner of most frequently asked question from a borrower is: “what is going to happen with the interest rate”? Will rates go up or down this afternoon? Next week? Or, what kind of rate environment will there be in 2020 that could possibly affect the FTHB market? So much to analyze!

All of these forecasts, including the weather, are subject to drastic changes. There have been predictions of a rising interest rate environment for the past four years. Despite some minor fluctuation, rates have remained relatively flat over this period. So, the lesson here is that with all of the data we have to review, the best we can do is make an educated guess. It is the same as the weatherman trying to predict landfall of a hurricane, they really don’t know.

So, my advice in trying to predict interest rates is this: take an umbrella.

*Sources:

Zillow.com

US Census Data -https://www.census.gov/population/age/data/2012comp.html

Author:

Vincent Aurigemma

VP, Residential Lending

Vince Aurigemma - Headshot

Blog Divider - Decorative

October 25, 2016

Why Millennials need to start saving for retirement now!

For new professionals beginning a career in their early 20’s retirement can seem light years away. I certainly felt this way in my early 20’s, and to some extent still feel in my mid 30’s. The reality is retirement is not that far away. The longer millennials wait to start saving, the more difficult achieving retirement goals will be. For a long time the combination of Social Security and in most cases a pension ensured a semi comfortable retirement. Adding a 401k and/or IRA to the mix was just icing on the cake. For most job families pensions are a thing of the past, and social security is a big question mark. This leaves personal retirement savings as the most reliable way for millennials to achieve their retirement goals. So why is it so important to start early?

Building a savings habit

It’s easy to procrastinate when you first start your career. Common reasons for procrastination are, time, lack of disposable income, awaiting inheritance, etc. Although these feel like good reasons to wait I can ensure you they’re not. You’re in control of when and how you retire. Building a strong savings habit early is very important to building wealth. Starting a savings plan is often the hardest part, once established it becomes an addiction. Understanding money is tight when you first start your career, here are few tips to give you a kick start.

  • Create a budget and include an amount for savings, whatever you can afford, it all adds up!
  • Take advantage of your employer’s 401k plan. Most of these plans offer a competitive match, which is free money! Start with a small percentage and increase every year by 1%.
  • Try the 52 week challenge. Start week one by saving $1, the following week save $2, increasing your savings $1 every week for 52 weeks. At the end of the year you’ll have saved $1,378!

Time is Money

Have you ever heard of compounding? Compounding is the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings. In other words, compounding refers to generating earnings from previous earnings. Hypothetically speaking say you contribute $5000 to an IRA. In the first year your account balance grows by 10%. Your investment is now worth $5,500. In year 2, your account balance grows by another 10%. In this case your $5,500 account balance grows to $6,050. Rather than your investment growing $500 in the previous year, it grows $550. The additional $50 in growth is a direct effect of compounding. Each year growth takes place, compounding has a more dramatic effect than the year prior. Those that begins saving for retirement in their early 20’s have ten more years of compounding growth as compared to those starting in their early 30’s. In this case, time really is money!

Retire when you want, not when you can

The great thing about retirement planning is that you’re in the driver’s seat and in control. You control how much you contribute, the investment type, etc. Although fluctuations should be expected when investing, having the right plan will send you on the way to achieving your goals. At some point you may have been asked when you want to retire. Were you confidently able to answer this question? Most are not, nor should they be able to say definitively. However, having a plan in place with specific goals set will put you in the best position to answer this question.

Author:

Mark Malone

VP, Area Sales Leader

Mark Malone - Headshot

Blog Divider - Decorative

October 18, 2016

Should I Refi? - Let's do the math!

Have you ever heard this one? “It’s not worth refinancing unless you are going to drop your rate by 2%”. It is generally preceded by “my parents told me”…

I cannot tell you how many times I have heard that in the past 13 years. So, where did the notion of the 2% threshold to refinance come from? It is driven by the average sales price of a new home. Let’s do the math.

If we take a historical look back at the average new home sales price in the United States, the price of a home in January of 1976 was $72,400. Fast forward to January of 2016 and it was $363,400. The average loan size of a mortgage is going to dictate how a change in interest rate will affect the viability of a refinance scenario. Let’s do the math!

I will assume each home was financed using a 20% down payment, leaving their loan amounts at 80% of the value ($57,920 & $290,720 respectively). Now, applying the average 30 year fixed interest rate for that period of time (January 1976: 9.02% vs. January 2016: 3.875%) we can determine how the mortgage amount will dictate our threshold of interest rate change:

1976: $57,920 @ 9.02% = $466.87 (principal & interest)

If we reduce the 1976 interest rate by 2% (7.02%), we have a new payment of:

$57,920 @ 7.02% = $386.12

Creating a savings of $80.75

In order to save the same $80 in principal and interest payments in 2016:

2016: $290,720 @ 3.875% = $1,367.07 (principal & interest)

If we reduce the interest rate by .5% (3.375%) we have a new payment of:

$290,720 @ 3.375% interest = $1,285.26

A difference of $81.81

Now, refinancing your mortgage to save $81 per month may or may not be worth it to you personally. The point of this exercise is that you do not need to wait and hope that rates fall by 2% in order for it to make sense to refinance.

You should always seek out a residential mortgage lender to help you calculate the monthly savings while taking into account any and all cost associated with a new loan. This will ensure you have the proper information to make an informed decision on one of the biggest financial decisions you will make in a lifetime.

  • Average new home sales price via the US census.gov
  • Average 30 year fixed interest rates via Freddie Mac interest rate chart

Author:

Vincent Aurigemma

VP, Residential Lending

Vince Aurigemma - Headshot

Blog Divider - Decorative

October 11, 2016

Millenials and Banking

For the past several years, a hot topic in banking circles has been centered on Millennials. More specifically, the talk has been how to tailor banking solutions to meet the needs of the next up and coming generation. Born between 1980 and 2000, Millennials are the largest generation in American history. As a Millennial myself, I can attest to the fact that being born in the early 80’s, as I was, is much different than being born in the late 90’s. That being said, if there’s one thing that’s shaped this generation as a whole, it’s technology. Technology has touched just about everything in the lives of a Millennial, most of whom don’t remember life without access to the internet. Over this same time period, banking has evolved tremendously along with technology. Technology has driven customers away from bank branches and to ATM’s, computers, mobile devices, and third party payment systems such as PayPal.

There’s no question, Millennials are changing the way banks do business. Many so called industry experts will say that Millennials only want digital solutions to manage their money - not traditional methods such as meeting with a Banker. I’m not completely sold on this idea. Although the role of a Banker is changing, my Millennial customers still see value in face-to-face contact and personalized advice, particularly as it relates to more involved needs, such as financing their first home, or planning for retirement. Even with the growth of technology, I believe that the “Banker” will continue to play an important role in the branch.

Although technology has made banking mobile and increasingly more convenient, customers can still find value in a local, personal relationship and great face-to-face customer service. Having a point of contact during financial milestones and challenging times can make all the difference in the world. With the endless information that can be accessed online, Millennials have questions like everyone else, especially with so much content to sort through. Having a Banker as their go-to for answers is priceless. With a generation so consumed in technology, our services and offerings need to be transparent and straight-forward in order to get Millennials to feel comfortable and confident with banking. Customer service is something that never goes out of style, and here at Rhinebeck Bank our goal is to always provide our customers, Millennials included, the most pleasurable banking experience we can possibly give.

Author:

Mark Malone

VP, Area Sales Leader

Mark Malone - Headshot

Blog Divider - Decorative

October 4, 2016

Star light, star bright, Albany changed the S.T.A.R. program with all their might!!

In a deal between the New York legislature and Governor Andrew Cuomo, the state has changed the way new homeowners can take advantage of the STAR program. While the total amount of the tax relief remains unchanged, the difference is in “when” you receive it.

Under the previous program rules, homeowners eligible for the STAR program received the STAR refund in the form of a property tax exemption and thereby saw a reduction in their tax bill. So, homeowners who escrowed their taxes as part of their mortgage would see the benefits of the tax break on a monthly basis. Now, all home purchases will receive a tax rebate check for a portion of their school property taxes on a yearly basis. You will no longer be required to register with your local tax assessor but instead will now register directly with New York State.

Now, all home purchases will receive a tax rebate check for a portion of their school property taxes on a yearly basis.

The interesting part is that the change is being made retroactively to 2015 tax year!

So, if you purchased a primary residence after May 1st, 2014 you would now need to apply for the new STAR program if:

  • You bought the home after the 2015 application deadline.
  • You did not apply for the STAR exemption for your home by the 2015 application deadline.

Most municipalities have a March 1st, 2015 deadline; however some do have different deadline requirements. To check for yours please click on the following link https://www.tax.ny.gov/pit/property/star/2015-star-deadlines.htm

Should you need to register for STAR, go to Register for the STAR credit or call 518-457-2036. Make sure to have your school tax bill ready when you call.

Even though you now register directly with New York State, your local town assessor is still a great resource of information and guidance with this process. Reach out to them for assistance or information to ensure you are taking advantage of all the benefits that you are eligible for!

Reference: New York State Department of Taxation and Finance

Author:

Vincent Aurigemma

VP, Residential Lending

Vince Aruigemma Headshot

Blog Divider - Decorative

 

 

Member FDIC. Equal Opportunity Employer. Equal Housing Lender.  
Follow us on:
FacebookInstagramLinked InTwitter
Contact Us    Site Map    Privacy Policy    USA Patriot Act    Careers