FAQ Page

FICO Score

A FICO Score is a single number produced to identify the credit risk of an individual at a specific point in time. This method, developed by Fair Isaac & Credit Organization determines the probability a credit user will pay their bills on time. Invented in the late 1950s, this formula has become the objective measuring stick accepted by lenders to evaluate credit. The higher the credit number, the better the credit. Equifax, Experian and TransUnion are the three primary credit reporting agencies and consumers can obtain a free credit report once a year from each company.

How do I improve my credit score?

The first thing to do is pay your bills on time. This is a steadfast recommendation from most advisors. Late payments and collections can critically impact your credit score. Do not apply for credit frequently, the fewer inquiries on your credit report, the better. Each time your score is retrieved, it dings your credit. Reduce the balances on your credit cards. Comb over your credit report and correct any mistakes. .Don't lose too much sleep over a bad score, just make sure you start looking at ways to improve it.

The FDIC

President Franklin D. Roosevelt and Congress created The Federal Deposit Insurance Corporation (FDIC) in response to the devastating stock market crash of 1929. Thousands of the failed banks could not return the money consumers deposited in them. The FDIC now insures depositors up to 100,000 and preserves public trust in the banking system. Managed by a five-member Board of Directors appointed by the President and confirmed by the Senate the FDIC makes for certain that banks operate legally and safely.

The Federal Reserve

Established by President Woodrow Wilson and Congress in 1913, The Federal Reserve, also known as The Fed, constructed the central banking system of the United States. Their primary function is to regulate and stabilize the money supply, by either increasing or decreasing the amount of money in circulation, so as to keep the economy stable. The Fed administers economic services to the government, citizens and financial institutions and is responsible for monetary policy and protecting consumers' credit rights

Money Market vs. Certificate of Deposit

Choosing between a Money Market Deposit Account (MMDA) and a Certificate of Deposit (CD) depends on how soon you want to access your funds. An investor can calculate the exact amount of money a CD will earn, as opposed to a MMDA where earnings are contingent on the amount of funds deposited.

A Money Market Deposit Account is a liquid savings account that pays a fluctuating market interest rate as long as the balance of the account does not fall below the minimum balance requirement. They usually pay a higher interest and also have a higher minimum balance requirement. Sound Community Bank offers MMDA to make it easier to achieve your financial goals.

A Certificate of Deposit account is another form of a savings account that pays a fixed interest rate. Once you have invested in a CD you can't access the funds until the set maturity date, to guarantee your full earnings. If you do withdraw from the account, you will generally be charged sizeable fee. Sound Community Bank offers CDs with terms available from 3 months to 5 years and the rate is guaranteed for the term of the account.

Learn about deposit accounts.

What is Online Banking?

Online banking is a confidential, safe and secure way to do your banking from any computer�and it's free! Access account balances, pay bills, transfer funds, and much more. You can track your transactions immediately and save yourself time and energy. As a Sound Community Bank customer you have access to online bill payer! Save time, money and trees. Log on to www.soundcb.com and sign up!

Unsecured vs. Secured Loan

A secured loan means the loan is secured on a piece of property (car, house, boat). The lender then has a security for the loan, this usually can allow for a lower interest rate, as opposed to a unsecured loan where there is no security required. This type of loan will likely have a higher interest rate and is a higher risk for the lender.

Loan to Value Ratio

This is a lending risk ratio expressed as a percent of the amount of money loaned to the appraised value of an asset. For example, if you want to buy a house that is appraised at $200,000, you have $20,000 for a down payment and want to finance $180,000, your LTV would be 90%. The asset is the security for the loan. We can help reduce the stress that is often associated with your home buying experience. We also specialize in Refinancing! Click here for mortgage information.

Traveling Abroad and Protecting your Finances

When traveling overseas there are many safeguards you must follow, one of which is protecting your finances.

Inform your bank and credit card company that you are traveling and there will be overseas transactions. If you don't take this precaution your account may be frozen because of suspicious activity.

Always wear a money belt and keep your money, credit cards and passport in different areas--part in your money belt, a safe at the hotel, and also in your wallet; Always know where your money is and in case something happens and your wallet is stolen, you still have funds available in your money belt and hotel safe. Always beware of pickpockets.

Never display large amounts of money in public

Exchange your money as you go so you have a mix of funds-credit card, Traveler's Checks and currency.

Always keep a little bit of money in your domestic currency. This is especially true if your domestic country is a larger economy i.e. the American dollar, the Euro, Yen etc.

Purchase Traveler's Checks before you leave and make sure you allow plenty of time to exchange your money if you exchange it in your home country. Many banks don't carry foreign currency so they will have to order it or send you to a larger bank.

Equity

The difference between a company or individual's assets and total liabilities determines the equity. In real estate equity indicates the difference between the appraised market value of a property and the owner's mortgage debt. Equity is calculated by total assets minus total liabilities.

Debt to Equity Ratio

An estimate of a company's financial leverage determined by the total amount owed to the total amount owned. Total liabilities divided by the total equity multiplied by 100 to give a percentage. This is a comparative measure of debt.

How would my finances be affected in case of a natural disaster?

Victims of natural disasters have many state and federal options after a natural disaster. Property and business owners are eligible for tax breaks that can alleviate some losses. It is important to keep records and when possible, copies in a safe place.

Contact your lenders and explain the situation; many lenders will work with victims of natural disasters to establish provisional repayment options. Contact the IRS when disaster hits to prove that a loss has occurred in hopes of qualifying for a casualty loss deduction.

Other Federal Resources:

IRS toll-free disaster hotline (1-866-562-5227)

Department of Housing and Urban Development
http://www.hud.gov/

U.S. Small Business Administration
http://www.sba.gov/

FEMA

http://www.fema.gov/

NSF Fees

Non-sufficient fund fees occur when the drawer's deposit balance is less than the amount of the check presented for payment against the account. To prevent NSF fees sign up for unlimited, free online Bill Payer through Sound Community Bank and access your account and 24 hours a day.

Frequently Asked Banking Questions

Q: Is there a banking crisis?
A: Let's set the record straight: The banking industry – traditional federally insured, federally regulated depository institutions which include your local commercial bank, thrift or savings bank -- is safe and sound. And your account in commercial banks, thrifts and savings banks carry FDIC insurance.

Q: How do we know that?
A: Federally regulated banks are required to employ underwriting practices to avoid losses and to promote safe and sound operations. And when they do not operate appropriately, their regulators, who visit them annually, will take exception to such practices and require corrective action.

Q: Who regulates banks?
A: That depends on the bank's charter. There are four federal regulators – the Federal Reserve Board; the Comptroller of the Currency; the Office of Thrift Supervision; and the Federal Deposit Insurance Corporation. The FDIC also insures deposits in its member banks up to $100,000 for regular accounts and up to $250,000 for retirement accounts. That insurance applies to accounts in FDIC member banks that are commercial banks, thrifts and savings banks. We are regulated by the OTS and our deposits are insured by the FDIC.

Q: But I am hearing and seeing so much news that keeps talking about the "banking" crisis. What gives?
A: The problem is that words matter. And when one word is used to mean several different things, it inevitably creates confusion. For example, we know what a bank is. But sometimes a business that wants to add status to its name will call itself a "bank" even though it is not an insured depository institution—such as a commercial bank, thrift or savings bank.

Bear Stearns, the investment house headquartered in New York City, was not a commercial bank. It was an investment "bank."

The word "bank" is also applied to mortgage firms. Their function, their purpose and their regulation differ from federally insured depository institutions. And in this time of market turmoil, it is worthwhile remembering that only commercial banks, thrifts and savings banks carry FDIC insurance.

Q: Market turmoil makes me nervous. What's the banking system - the federally regulated banks you mentioned - doing about it?
A: Like ourselves, they are providing stability. Having a safe and sound banking system to rely on shows the importance of the role banks play in our local communities and in our nation's economy. They are the source of stability and of growth. That is true regardless of their asset size, their charter or their business plan. And the vast majority of federally regulated, federally insured banks today hold more capital than the law requires.

Q: So, how did those other institutions get in trouble?
A: Today's crisis underscores the fact that there are two ways financial institutions can fail. They can fail due to capital insolvency, or because they are liquidity insolvent. What many of those institutions are experiencing now is a lack of liquidity, not a lack of capital. Capital remains strong -- strong for investment banks as well as for commercial banks and thrifts.

The liquidity crisis that we have seen on Wall Street comes from a crisis of confidence. In the 1930s, before deposit insurance, banks failed because of a crisis of confidence that led to liquidity insolvency. That can also happen to an investment "bank" such as Bear Stearns. There is a crisis of confidence, lending lines are pulled, liquidity evaporates and insolvency is inevitable.

Q: What's being done to help those other institutions, and to help the economy?
A: We all know that our financial system is being tested. But let us also remember that the system is showing its resiliency. Let me give you some examples:

• The Federal Reserve Board has acted to help restore liquidity by assuring everyone that they are responding to the problems in a measured way. The Fed's action in regard to Bear Stearns is one example. In addition, the Fed opened up its lending facility known as the discount window to Wall Street firms, and is taking steps to restore liquidity to the markets.
• In addition, the Office of Federal Housing Enterprise Oversight has reduced the capital surcharge imposed on Fannie Mae and Freddie Mac so they can buy an additional home mortgages.
• And the Federal Housing Finance Board will allow the nation's 12 Federal Home Loan Banks to provide greater liquidity in the mortgage markets.

Q: I keep seeing headlines and hearing news reports that repeat the word "crisis" - the "subprime crisis."?
A: Keep in mind that those reports overlook the fact that the subprime lending crisis was caused by unregulated brokers and Wall Street institutions themselves, sometimes using the title "bank," and not by regulated, insured banks.

Our banking system is strong. This crisis will pass, as have all the others, and the result will be a stronger financial system with fewer unregulated players and a reminder that liquidity and capital are both important to solvency.

Q: Are my deposit accounts FDIC insured?
A: Yes! Each individual customer's account is insured by the FDIC up to $100,000 per account.

Q: How do I set up Direct Deposit of my payroll check?
A: After your checking application has been approved, you will receive our routing and transit number and your account number. If your employer participates in a direct deposit program, simply provide this information to the human resources or payroll department at your company, and your direct deposit will usually begin within thirty days.

Q: How do I set up Direct Deposit of my Social Security check?
A: After your checking application has been approved, you will receive our routing and transit number and your account number. Simply contact us, and have your Social Security Number and account information available to set up your direct deposit right over the phone.

Q: Can I get information about my account by phone?
A: Yes! Account information is available with our Customer Service Representatives during business hours at any of our offices or ask about our Voice Response System for automated account information 24 hours a day.

Q: What products can I apply for online?
A: We have a variety of business and personal accounts. Check out our Products & Services page to see which accounts you can apply for online.

Q: Do you offer IRAs online?
A: Yes we do offer IRAs online. To see what we currently offer, visit our Products & Services page.

Q: Is interest paid on my checking account?
A: Yes! If you want a checking account that pays a market rate of interest, check out our Now Checking account.

Q: Can I open an account if I don't live in the United States? What if I live in the United States but am not a citizen yet?
A: At this time, we only accept applications from persons residing within the United States with valid U.S. tax identification numbers (Social Security Numbers). If you have questions, contact us. We'd like to hear from you.

Q: Can I do all of my banking with you?
A: Yes! Thanks to the convenience of Direct Deposit and ATMs, everyday banking activities can be performed on your own time. Contact us with questions about your banking needs.

Q: Can I look at all of my transactions at any time?
A: Yes! With Online Banking, you have access to your account information 24 hours a day, 7 days a week!

Q: How frequently is my information updated?
A: Your account information is updated every business day with new transactions that posted to your account the previous day.

Q: Are wire transfers possible to and from my checking account?
A: Yes! Funds can be transferred to and from accounts by wire transfer or via ACH (Automated Clearing House) debits or credits. Contact us for details.

Q: How do I make a deposit to my account from a remote location?
A: You can do most of your banking by using direct deposit, ATMs or ACH (Automated Clearing House) transactions. We also offer a bank-by-mail service, which allows you to mail non-recurring deposits. Contact us for details on a method that's best for you.

Q: When do I have access to use Internet Banking?
A: With Online Banking, you have access to your account information 24 hours a day, 7 days a week!

Frequently Asked Internet Banking Questions

Q: What is Internet Banking?
A: Internet Banking is a tool that allows you to use a personal computer with an Internet connection to conduct your banking online.

Q: What can I do with Internet Banking?
A: You can view account balances and transaction history, transfer money, and download transactions to a personal financial manager and much more. Check out the Internet Banking Demo to see all the features of Internet Banking and how you can personalize your online banking experience.

Q: Is any of my personal information stored in the Internet Banking product?
A: Yes, the Internet Banking product stores your User ID, password and user preferences. If you keep a stock portfolio, that information is also stored.

Q: How current is my banking information?
A: Your account information is updated every business day with new transactions that were posted to your account the previous business day

Q: What accounts will I be able to access through Internet Banking?
A: You can access your checking, savings, investment and loan accounts from the Internet banking service. Our Internet Banking Product is intended to give you as much access, security, and versatility as possible.

Q: How much account information can I view at once?
A: The system will automatically show the current month's transactions and information. However, by selecting User Preferences, you can choose to view the current month and the previous month. Or, you can choose to view your account from the current date to same date of the previous month.

Q: Can I view my account details in more than one way?
A: Yes, you can view your accounts by date, check number, payee, amount or balance in ascending or descending order.

Q: What formats can I download my transaction history in?
A: Internet Banking supports downloads to Quicken™, Microsoft Money™ or as a comma-delimited text file.

Q: Can I schedule future transfers?
A: Not at this time. But in the future, you will be able to schedule open, future and recurring transfers.

Q: When can I use Internet Banking services?
A: With Internet Banking, you have access to your account information 24 hours a day, 7 days a week!

Q: How many stocks can I track in my online portfolio?
A: Your online portfolio will track up to 20 stocks.

Q: Is there a demo available for me to try?
A: Yes, we have an Online Banking Demo that is part of the Home Banking package.

Q: How long can I be inactive before being logged out of the Internet Banking product?
A: The inactivity time out default is set for 20 minutes. However, you can define the timeout period in the User Options area for 5, 10, 20, 45 or 60 minutes.

Q: What is required to use the Internet Banking service?
A: All you need to use Internet Banking is a secure browser that supports 128 bit encryption, such as Microsoft Internet Explorer®, Netscape Navigator® or America Online®. You can use any computer that has Internet access.

Q: How do I access Internet Banking?
A: You must first complete the Internet Banking registration form and submit it to us. Once your registration is received we will process your request. You will need a password to access the service for the first time. You may contact us by telephone or wait for your password to be mailed to you. You must have an existing checking, savings or loan account before banking online.

Q: Can I create my own password that is easy for me to remember?
A: Yes, after you use your assigned password to log-in for the first time, you can go to User Options and change your password.

Q: What happens if I forget or lose my password?
A: Just call us and we will take you through the steps needed to get back into the system immediately!

Frequently Asked Bill Pay Questions

Q: How does bill payment work?
A: To help you understand the process, we have provided a diagram.

Q: Is it possible to schedule recurring payments?
A: Yes. You can schedule weekly, semi-monthly and monthly recurring payments. The final payment of a recurring payment scheme is designated by a 'Final Payment Date.'

Q: How do I register for electronic bill payment?
A: Bill Payment registration is easy!

The first time you attempt to access the bill payment section of Internet Banking, you will be prompted to begin online registration. You are first requested to read and accept the authorization disclosure. Failure to accept the disclosure terms prevents the registration process from proceeding.

Once the disclosure is agreed to, you complete the online registration form. The registration form is then forwarded us for review. We are responsible for checking the information on the form and for assigning you a payment plan. The registration information is then transmitted to Metavante for their approval process. After the application is approved by Metavante, they send an acceptance 'welcome letter' to you via regular mail. You should receive the welcome letter within 8-10 business days. The welcome letter contains a temporary Account ID. Approximately two business days later, a separate letter containing a Personal Security Code is delivered. The Account ID and Personal Security Code are only used to allow access to the bill payment feature the first time. After that, access to bill payment does not require a separate logon.

Q: When I add a new payee to my bill payment account, or change my account number, how quickly will the change take place?
A: When you update the information for the bill payment account, the changes are implemented virtually instantaneously.

Q: Can I receive an annual summary of my bill payments sorted by category or payee?
A: Not at this time.

Q: Can I use electronic bill payment with all my accounts?
A: No, only checking accounts can be used for bill payment purposes.

Q: When can I start using electronic bill payment?
A: You can begin bill payment once you have received both your Account ID and your Personal Security Code. These items are required for the initial bill payment logon screen.

Q: When is bill payment available?
A: You can schedule payments 24 hours a day, seven days a week.

Q: Are my bill payment transactions reflected as Internet Banking transactions?
A: All bill payment transactions become part of the Internet Banking transaction history and show up in personal financial management applications when the transaction history is downloaded.

Q: How do I add new payees?
A: You can add payees by accessing the Add Payee screen. New payees will be added to the payee list immediately.

Q: Can bill payment be used when I am out of the country?
A: Bill payment provides you with peace of mind when you are traveling for an extended period of time. All you need is access to the Internet with a secure browser and you can pay your bills while out of the country. Payees must be located within the 50 United States and Territories.

Q: Is there a limit to the number of bill payment accounts I can set-up?
A: Yes, you are limited to one bill payment account.

Q: Who can be paid using the bill payment system?
A: Anyone in the 50 United States and territories who can accept a check can be paid using the bill payment system. You can pay practically anyone- charge accounts, utilities, auto loans, professionals, even a lawn service or a relative. However, tax payments (such as federal, state and local) and court directed payments (such as alimony and child support) cannot be processed through our online bill payment system.

Q: Can I pay my bills on the weekend?
A: You can set up your payments during the weekend. However, the system will prohibit you from scheduling a single payment and the first of a recurring payment on the same weekend. This is because payments scheduled for the weekend are always processed on the Friday before. Therefore, when scheduling payments on a weekend, the first day for which you can schedule payments (single or recurring) is the first business day following the weekend.

Generally, single or recurring payments that fall on a Saturday, Sunday or bank holiday are processed on the previous business day and are debited from your account within two business days. If a bank holiday falls on either a Friday or Monday, the debit will occur within three days.

Q: If I schedule multiple bill payments for a single day, how will my account be debited- as a lump sum or separately?
A: Each bill payment is debited separately.

Q: What if I do not have sufficient funds on the day Metavante, our bill payment providers, debits my account?
A: Following is a summary of Metavante Data Service's Insufficient Funds procedure:

• A block will automatically be placed on all accounts that have an ACH debit returned to bill payment services. No additional bill payments will be processed until the account is properly funded and the return(s) cleared. If a payment request is received while the account is blocked, a letter will be sent notifying you that the payment(s) will not be processed. A copy will also be sent to the Financial Institution.
• Upon the first return, Metavante will automatically re-send all ACH returns under $100.00. Exception: debits for payments in which the credit portion was sent electronically will be resent regardless of the dollar amount without financial institution verification.
• Metavante will contact the financial institution to verify all returns exceeding $100.00. If funds are available, they will re-send the return(s). If funds are unavailable and if the payment was made by check, a stop payment will be placed.

Q: Are all debits and credits sent out at the same time?
A: Yes, they are all sent out at the same time.

Q: How is my account debited?
A: Your account is debited via ACH.

Q: What is ACH?
A: Automated Clearing House is a funds transfer system which provides for the interbank clearing of electronic entries for participating financial institutions.

Q: If I make an error in selecting an electronic payee and it results in a late fee, am I responsible for the charges?
A: If you select an electronic payee with an address that is different from that indicated on the payment coupon, then you are responsible for the late fee. You always have the option to manually enter a different address for a payee.

If you select an electronic payee with the address that matches that indicated on the payment coupon, and Metavante routes the payment incorrectly, then Metavante will take responsibility for the late fee.

Q: How do I place a 'stop payment' on a bill payment?
A: A payment may be edited or deleted anytime before the "process date." Payments that have been remitted electronically cannot be stopped.

GLOSSARY - Frequently used online identify theft and online security terminology.

A

AntiVirus Software - A computer software program that detects and responds to viruses and worms, blocking access to infected files and performing frequent updates.

B

Browser - A computer software program that is used to view and interact with Internet material on the World Wide Web. Netscape Navigator and Microsoft Internet Explorer are two of the most popular browsers.

D

Dumpster Diving - Thieves rummage through trash looking for bills or other paper that includes your personal information.

E

Encryption - A process in which data is scrambled before it is transferred so that it cannot be read by unauthorized parties.

Enhanced Security Login - Provides security at login, no matter what computer you sign in from, using additional end user authentication that helps to protect against online fraud.

F

Firewall - A gateway supported by hardware or software that limits access between computer networks. Firewalls can protect your home computer from hackers and your family from web sites that may contain offensive material.

H

Hacker - A person who tries to gain unauthorized access to a computer system. Hackers are known to modify computer programs and security systems that protect home and office computers.

K

Keystroke Capture - A spyware program or device that records what users type on their computer. Also referred to as Keystroke Logger.

M

Malware -  Also known as ‘malicious software’, malware is designed to harm, attack or take unauthorized control over a computer system. See Virus, Trojan and Worm.

O

Opt-In - Permission granted to a business or organization to use your email address for

promotional or marketing purposes, or to rent your email address to another organization.

Opt-Out - The opposite of Opt-In- not granting permission for a business or organization to use your email address for promotional or marketing purposes, or to rent your email address to another organization.

P

Patch - A new software release created to update a computer software program. Updates may include security, performance, or usability enhancements.

Pharming - Pharming takes place when users type in a valid URL and you are illegally redirected to a web site that is not legitimate in order to capture personal information through the internet such as credit card numbers, bank account information, Social Security number and other sensitive information.

Phishing - The process of seeking to obtain personal information illegally through email or pop-up messages in order to deceive you into disclosing your credit card numbers, bank account information, Social Security number, passwords, or other sensitive information.

Pop-Up Ads - A form of web advertising that appears as a "pop-up" on a computer screen, they are intended to increase web traffic or capture email addresses. However, sometimes popup ads are designed with malicious intent like when they appear as a request for personal information from a financial institution.

Privacy Policy - A standard policy included on most corporate websites that explains how personal information collected about visitors to a company’s site is handled.

S

Service Pack -   A software program that updates, fixes and/or enhances a software program found on your computer, typically delivered in the form of a single, installable package.

Skimming - When an unauthorized second copy of a credit or debit card is taken by an employee at a store by using a storage device that copies the details held within the card’s magnetic strip.

Spam - Unsolicited bulk electronic “junk” messages sent to huge numbers of people via email, instant messaging, Usenet newsgroups, and more.

Spoofing - A form of phishing, a way for cyber criminals to send emails that look legitimate, but are not, to falsely represent a legitimate company or organization. The false email from phishing will include a phony link to what closely resembles a legitimate website address. Once click upon, the victim is asked to provide personal information which is then forwarded to criminals.

Spyware - Loaded onto your computer unbeknownst to you, spyware is a type of program that watches what users do and forwards information to hackers over the Internet.

T

Trojan Horse - A malicious program that is disguised or embedded within legitimate software program that, when activated, unwittingly allows hackers to gain unauthorized access to the computer.

V

Virus - A self-replicating computer program, loaded on to your computer without your knowledge that spreads by making copies of itself and clogging up your computer’s memory.

W

Worm - Similar to a computer virus, a worm attaches itself to, and becomes part of, another executable program. Able to self-propagate, worms generally harm the network and consume bandwidth.