ShoreBank Blog
The ShoreBank Blog is your place to find ShoreBank news, new product information, and our insight into the banking world.
Posts Tagged ‘high yield savings’
Friday, January 16th, 2009
35 years ago ShoreBank was founded on the South Side of Chicago to provide people unfairly denied credit with access to financial resources and information. And next week a new President with be sworn in – one who started his career in the same areas ShoreBank has been active.
ShoreBank has always been committed building sustainable communities That mission continues today as ShoreBank is one of the nation’s only triple bottom line financial institutions.
Communities, of course, change . As Joel, our manager of triple bottom line innovations, noted in an earlier post, all he has to do is look out his window to see the transformation that has taken place in the local community – other banks have appeared on many street corners. But not just the neighborhoods have changed – the way people want to bank is also evolving too.
When I speak at events here in Chicago I often meet people who are very interested in the way ShoreBank does banking. And they want to invest in this work. They love the stories of local entrepreneurs creating green collar jobs , green businesses, and of homeowners making energy efficient improvements – and they love that we work with borrowers in-person. But like people across the nation they want to manage their savings from a computer at home. And on a freezing day like today I am definitely in this camp.
Banking online is part of “green banking” and it supports our mission to preserve scarce resources and leave as small an environmental footprint as possible. We provide statements electronically instead of in the mail and we don’t need to build extra branches to serve our customers. But how do we create a sense of community when, increasingly, we like to bank alone?
We saw this same challenge in politics this year as now President-elect Obama found a way to engage people using technology – but he still met with countless individuals face to face. We too are working to broaden the ways we connect with the community of people interested in supporting our traditional personal, one-on-one lending. So our online presence is changing. You have already seen some of these initiatives; in fact, you may have opened an Online High Yield Savings Account because of them. We have created a website with stories and videos of our customers and we have included features that make it easy to share items that interest you. We launched this blog and welcome your comments. We hope these stories and information are useful, so please share with us your comments and what other features and subjects you would like covered here too And don’t forget to visit our new Facebook page (Admittedly it is not as well known as the Obama page). This is all relatively new for us and somewhat unusual for a bank.
Even with these new electronic channels, ShoreBank continues to partner with borrowers with traditional personal, one-on-one service. Our ability to be a part of the community – working with potential borrowers, understanding their stores and finding them the best product for long term success – is, and will always be at the heart of what we do.
But in a world were my friend’s three month old daughter already has an email account we know online capabilities will be a significant part of the our future. We look forward to building community in this space too.
Tags: community development, green banking, high yield savings, ShoreBank Direct, social media, socially responsible investing, triple bottom line
Posted in Community | 2 Comments »
Friday, December 5th, 2008
Last holiday season, I was in graduate school during what the National Bureau of Economic Research recently declared the “start of the economic recession.” Yet despite my declining bank account balance and lack of income, I had one of the happiest holiday seasons ever. Why? Because I had devised a strategy to minimize my expenses while maximizing my gift giving and holiday festivities.
In this economy, it seems that almost everybody has these same goals. The trick is to find and practice the holiday thrift tips that best suit you. On that note, I interviewed ShoreBankers at our headquarters in the South Shore neighborhood of Chicago, and asked them what advice they would give shoppers hoping not to overstrain their holiday budgets. Here is what ShoreBankers recommend:
1. Save throughout the year. For example, saving just $25/month in a high yield savings account at ShoreBank each month will build a $300 kitty for holiday shopping in December. In addition, you can buy an extra treat with the interest you earn.
2. Stick to your holiday shopping budget. Several ShoreBankers use an Excel spreadsheet that lists who they plan on giving to this holiday season, the dollar amount they have allocated to that person’s gift, a list of budget appropriate gift options, and the final cost of the gift. This kind of tracking helps to avoid negative surprises on credit card bills in January. The key is to be disciplined $25 does not mean $26.
3. Give your time. One ShoreBanker said, “Give time. It’s the most precious gift you can give.” Bake cookies. Make dinner. Give a month of backrubs. For many, the little (and least costly) things have the most meaning.
4. Differentiate between what you “need” and what you “want.” You can then allocate your budget more effectively. If you have a soft spot for certain seasonal products (mine is for seasonal lattes), make a schedule for your treats and stick to it.
5. Primarily use ATMs and debit cards, and account for each transaction. Multiple ShoreBankers said “If you only need $40 from the ATM, resist the temptation to take out $80.” Use a debit card, write down every ATM transaction in your checkbook, and look at your account balance daily. It’s difficult, but even the attempt at completing this task can help you watch your budget.
6. Comparative Shop. Something we all know we should do but it is increasingly relevant as many stores are adding competitive match offers. Plus, you might be able to buy items in a store at online prices without paying for shipping.
7. Discount and Coupon Shop. Some ShoreBankers recommended going to thrift stores, goodwill, or discount racks at brand stores to buy top tier brands at low prices. Search for coupons and “percent off days” for necessary items on your lists. Remember, if you can get a good price on a quality item, it’s still a quality item.
8. Search for free seasonal activities. Most city halls have lists of free events. Who knows, you might even stumble upon a children’s choir performance!
I love the holidays and I hope one of these tips helps you to enjoy the season just a little more. As one ShoreBanker said, “We know the economy is bad. It is what it is. You just have to pay attention and use your money more wisely.”
Tags: community development, financial crisis, green banking, high yield savings, ShoreBank Direct, triple bottom line
Posted in Banking Industry | 1 Comment »
Friday, October 17th, 2008
As ShoreBank’s new Online Channel Manager, I’ve just emerged out of post-MBA unemployment and am now immersed in a quest to fully understand economic concerns and ShoreBank’s potential to alleviate them. These two phases of my life have a surprisingly similar theme: frugality. The financial meltdown has intertwined with inflation to stimulate monetary concerns for everyone. However, that does not mean that we still can’t find creative ways to maximize our dollars! Here are a few investment tricks to try as we approach the holiday season(s):
1) Investigate high yield savings accounts, like those at ShoreBank. They are great ways to accrue up to 3.50% APY on your money with minimal effort. With the holiday season approaching, $350 on $10,000 will certainly let you loosen your financial belt by a notch.
2) Do not charge more on your credit card than what you can pay off per month. If the temptation of a credit card is too much for you to resist, try paying with only cash. It is amazing how easy it is to restrict extra spending when you only have $50 in your wallet.
3) Downsize your home. You don’t have to move to downsize. You can raise your income (and ’spring clean’) by creating an inventory of your items and selling unwanted/unused items on Craigslist.org or at a garage sale.
4) When you leave, turn ‘it’ off. Unplug non-essential appliances—even “turned off” appliances can use energy. For example, a plugged in (but “off”) television still uses about 20 watts of power. Also, set your heater to a lower the thermostat when you are out of the house. Turn off the lights when you leave each room. Turn off your computer. It may seem small, but $20 in savings on our electricity bill could buy your dinner.
5) Buy used or at discount. Research Freecycle.org or Craigslist.org for gently used items. Try to shop for your favorite items at discount or outlet stores. You not only save money, but you get the added thrill of getting great deals.
6) Grocery shop every week instead of every month, if possible. Buy only the items you need for that week’s meals. This eliminates overstocking (and overspending.)
7 ) Research free events in your city. The city government often sponsors several events, ranging from pumpkin festivals to musical concerts. Local colleges and universities also provide a number of low cost events that are open to the public. You save money and get exposure to new forms of entertainment!
8 ) Go out at ‘deal’ times. Go out to dinner on nights when they have specials. Go to matinees. Shop on ’sale’ days.
9) Try to spend nothing on one day per month. It is really hard, but surprisingly rewarding if you can do it.
I’d love to hear how much you can save, or your own tips and tricks. At ShoreBank, we want to help you change the world, and part of that involves providing you with resources to manage (and save) your money.
Tags: community development, green banking, high yield savings, recycling tactics, ShoreBank Direct, triple bottom line
Posted in Banking Industry | 4 Comments »
Friday, September 26th, 2008
Since I last posted on this blog, the financial markets have continued to boil over with uncertainty over the evolving mortgage crisis. Average consumers are confused about whether their money is safe and how to know if their financial institution is safe. Despite the uncertainty in the overall market, ShoreBank is profitable, strong and growing. ShoreBank is well capitalized and a careful manager of its loan portfolios. Your deposit in ShoreBank is safe, secure and earning a market rate of interest.
The highest priority for ShoreBank is investing in local residents and their communities. We make loans that borrowers can afford that help them buy and rehab homes, apartment buildings and run businesses. ShoreBank has not engaged in predatory lending and has not invested in the so called “toxic” investments that are causing so much concern.
ShoreBank is currently focused on making Rescue Mortgages that refinance individuals that are trapped in predatory mortgage loans. We have found that many good hard working people who got caught in adjustable rate mortgages can lower their monthly payments with a ShoreBank 30 year fixed rate mortgage. Deposits like the High Yield Savings Account at ShoreBank help us to continue our lending. We thank you for being our customer and promise to continue to be a good steward of your deposits.
Tags: community development, FDIC, green banking, high yield savings, Rescue Loan program, ShoreBank, triple bottom line
Posted in Banking Industry | No Comments »
Thursday, September 11th, 2008
Hello, I am Jean Pogge, the Director of the Consumer and Community Bank at ShoreBank. For many years, I have been fortunate to work with customers and colleagues who understand the importance of socially responsible investing. SRI investors want to make sure their investments and their banking are in line with their values.
Socially responsible investors have been particularly important to ShoreBank. As a community development and conservation bank, we are very active lenders. Critical to our ability to continue to make loans is our ability to raise deposits. Socially responsible or mission based depositors have been drawn to banking with ShoreBank by the simple proposition that deposits in ShoreBank are the fuel for the exceptional community development and conservation lending we do in underinvested minority communities.
Deposits in ShoreBank offer amazing value. They are FDIC insured just like other banks; they pay market rates of interest like other High Yield Savings Accounts; and each customer gets the satisfaction of knowing that their money is being used to rebuild communities and create a healthier environment.
I look forward to our conversations over the coming weeks as we explore socially responsible investing and the way you can use your bank accounts to help change the world.
Tags: community development, FDIC, green banking, high yield savings, ShoreBank Direct, socially responsible investing, triple bottom line
Posted in Banking Industry | No Comments »
