Monday, December 24, 2018

Why You Should Consider Money Markets in 2019

Money Markets

When you're considering how to invest your money, it's normal to be a little hesitant or unsure. Stocks and bonds can offer some excellent growth opportunities, but investment doesn't come without risk. Money market accounts are a happy medium by putting money somewhere and seeing it grow without high risk and with a great deal of safety.

What are Money Market accounts?
A money market account is an interest-bearing account that typically pays a higher interest rate than a savings account and which provides the account holder with limited check-writing and/or ACH ability. Money market accounts offer the account holder benefits typical of both savings and checking accounts. This type of account is likely to require a higher balance than a savings account.

What are the other benefits?

FDIC Insurance. The Federal Deposit Insurance Corporation (FDIC) insures deposits and the interest accrued up to the maximum amount allowed by law- currently $250,000 for a single owner. FDIC insurance protects the money in your money market account the same way it does in regular savings accounts.

Money Market Options

Money markets are a great home for emergency savings, something you can access immediately. One way to think of a money market account is to think of it as less liquid than a checking account, but more liquid than bonds or Certificates of Deposits.

What is MSB offering for Money Markets?
Currently, MSB offers a regular Money Market Account ($1,000 to open) and an Indexed Money Market Account ($10,000 to open) for both consumers and business customers. Interest earned on either of these accounts is based on account balance tiers. Interest is calculated and paid on the entire balance in your account. In the Indexed Money Market Account, interest rate is based on the weekly average 4-week Treasury Bill secondary market rate Constant Maturity Treasury Rate (“CMT”) as published by the Federal Reserve in their H.15 Release located at their website Interest compounded daily and credited to account monthly. Transaction limitations in both Money Market accounts will apply and fees may reduce earnings.

At McHenry Savings Bank, we are a full service financial institution with a complete line of deposit and loan products. We have been serving the banking needs of the residents of McHenry County since 1955. We are local people making local decisions. Call us (815) 385-3000.


Friday, November 9, 2018

The Benefits of VA Housing Loans

veteran housing

With the housing market in northern Illinois fluctuating in 2018, now is the perfect time for veterans to research the benefits of our VA housing loans. The VA home loan program was created in 1944 as a way to thank our troops returning home from WWII. VA Home Loans are provided by private lenders, such as mortgage companies and banks, and the VA guarantees a portion of the loan for veterans, enabling the lender to provide more favorable terms for the loan.

VA house loan

So what are the benefits associated with the VA housing loans? Below are just some of the ways the VA and lenders like McHenry Savings Banks show their appreciation for veterans.

  • No monthly mortgage insurance.
  • One of the considerable hurdles for first-time homeowners is worrying about the down payment. With a VA housing loan, there’s no down payment. 
  • Limitation on buyer's closing costs. Sellers can pay all of a buyer’s loan-related closing costs and up to 4 percent in concessions.
  • Since the VA guarantees a portion of every VA loan, financial institutions can offer lower interest rates to VA borrowers that are typically 0.5 to 1 percent lower than conventional interest rates. Rates are based on the inherent risk assumed by the lender to finance the loan. On a 30-year $250,000 loan, the difference between paying a 4 percent and 4.75 percent rate can mean approximately $40,000 in savings over the life of the loan.
  • Because homeowners are able to save a considerable amount of money paying off their loans early, prepayment penalties were created to protect lenders and investors from the financial loss of losing years and years of interest payments on issued loans. Fortunately for VA borrowers, there are no prepayment penalties to worry about—you can pay off your VA loan early with no fear of getting penalized. This is a huge benefit and makes VA loans so desirable. 
  • No credit score apprehension. Veterans don’t need anything near perfect credit to secure home financing at competitive interest rates despite the relaxed credit score requirements. VA loans are also more forgiving when it comes to bouncing back after a bankruptcy, foreclosure or short sale.

Veteran Housing Loan

McHenry Savings Bank has been serving the banking needs of the residents of McHenry County since 1955. We encourage veterans to research VA loans and visit one of our local branches where we can further explain the process. This Veterans Day, Give McHenry Savings Bank a call at (815) 385-3000 or visit our website to learn more about our VA loans.


Monday, October 8, 2018

Six Ways to Avoid Holiday Shopping Scams

holiday shopping

In the wake of recent data breaches, shoppers should be on high alert while purchasing their presents this upcoming holiday season.

“While millions of credit and debit card transactions are conducted safely every day, it is important that consumers are aware of the potential for holiday scams,” said Jim Zak, Vice President of Retail and Small Business banking.

McHenry Savings Bank (“MSB”) offers the following tips to help consumer keep their information safe whether shopping in the store or online:

Monitor your account. 

Use online and mobile banking to keep an eye on your transactions, especially during the holidays. Notify the bank right away if there’s any fraudulent activity. If you use an MSB debit card for purchases, consider downloading the FREE SecurLOCK app. With this app you can set controls, spending limits, alerts, and turn off or on your card. Based on your customized alert setting, you receive instant notification every time a charge is placed against your debit card.

Beware of phishing scams. 

During the holidays, criminals will create a fake email for a deal that’s too good to be true. If you click on any links within the email, you may be downloading malware onto your computer or you may be asked for payment information that could lead to fraud.

Holiday shopping scams

Limit large sums of cash. 

Even though we’ve seen financial crime migrate from physical to cyber, customers should be careful not to carry around large sums of cash when shopping.

Secure your internet connection. 

If shopping online, make sure you do so from a password protected Wi-Fi network. Never access online banking from a public Wi-Fi network.

Shop safely. 

Before making an online purchase, make sure the website uses secure technology. When you are at the checkout screen, verify that the web address begins with https. Also, check to see if a tiny locked padlock symbol appears on the page.

Read the site’s privacy policies. 

Though long and complex, privacy policies tell you how the site protects the personal information it collects. If you don’t see or understand a site’s privacy policy, consider doing business elsewhere.

MSB is committed to providing tools and services that educate and protect consumers.  To learn more on what MSB can do for you, contact a Personal Banker today at 815-385-3000 or Visit us at our McHenry, Richmond or Johnsburg Branch or via the website at

Monday, September 10, 2018

6 Money Mistakes Newlyweds Should Avoid

McHenry Savings Bank offers tips for managing money together 

Summer wedding season is in full swing and newlyweds will soon be managing their finances as a pair. McHenry Savings Bank (“MSB”) is encouraging couples to waste no time addressing how they will handle money issues as spouses and financial partners.

“Developing a financial plan can often take a backseat to the excitement of a wedding,” said Jim Zak, Vice President of Retail and Small Business. “But it’s important to remember that this is not only a marriage of hearts but also a marriage of finances.”

To help couples start their journey on strong financial footing, MSB warns consumers of these post-wedding money mistakes:

1. Avoiding the money talk. Discussing your finances can be a bit uncomfortable for many couples, but those who tackle it head on will be better for it. Understand your partner’s financial goals and spending habits. While you may have different answers, this conversation can help you develop an approach to money management that works for both of you.

2. Not setting a budget. A mistake many couples make is not establishing a budget early on. After assessing your finances as a pair, determine how you’ll spend your money each month. Are there certain expenses you should be cutting back on and others you should be saving up for? Coming to an agreement on these things and setting a budget will be beneficial for the health of your bank accounts and your relationship.

3. Not having a plan for your accounts. There is no ‘right’ way to manage your accounts. Couples can choose to have exclusively joint accounts, a joint account as well as separate accounts for saving or personal spending, or keep things entirely divided. Discuss your preferences together and decide what makes you both the most comfortable.

Newlyweds Finances

4. Failing to set up an emergency fund. Life is full of surprises and unfortunately, some of these surprises can be expensive. Having an emergency fund will help you avoid precarious financial situations should something come up. It’s important that you decide together how you’ll set aside the money.

5. Not establishing a minimum cost for discussing big expenses. While not all purchases demand a conversation, more expensive ones that impact the family budget should. Determine what that threshold is as a couple. For any expenses above that cost, you both should be in agreement on whether it’s a necessary purchase.

6. Forgetting to update your beneficiaries. Now that you’ve officially tied the knot, you should likely identify your spouse as the person who will receive the benefits of your will, life insurance policy and financial accounts like your 401(k), checking and savings. Don’t make the mistake of waiting for an emergency to arise to handle this.

MSB offers a Personal Finance Manager tool to all personal customers via online eBanking. Consumers can use “Personal Finance” on eBanking to determine their net worth, create budgets, manage spending and cash flows, get alerts and more. This is an excellent tool for all customers, and especially for newlyweds who are beginning their lives together.

MSB is committed to providing tools and services that educate and protect consumers. To learn more on what MSB can do for you, contact a Personal Banker today at 815-385-3000 or Visit us at our McHenry, Richmond or Johnsburg Branch or via the website at

Sunday, August 26, 2018

Women’s Equality Day Today and Everyday...

Women's Equality DayWomen’s Equality Day is celebrated every August 26th, but with other days celebrating women, you may be wondering what we’re toasting to on this particular day. If you’re curious about the origins of Women’s Equality Day and what we’re celebrating, continue reading below.

The 19th Amendment
While celebrating women should be done throughout the year, Women’s Equality Day is for acknowledging the passage of the 19th amendment in particular. The 19th amendment was passed to allow women the right to vote in 1920 and was a hard fought battle that many women participated in. Before the 19th amendment women didn’t have the right to vote, which means they didn’t have a voice when it came to large decisions being made where they lived, and across the nation.

The Suffrage Movement
Women’s suffrage, also known as the political fight to enfranchise women, is widely believed to have started at the Seneca Fall convention in 1848. During the convention, organizers drafted a “Declaration of Sentiments, Grievances, and Resolutions” that greatly reflected the beginning words of the Declaration of Independence. This catapulted the movement into the spotlight, and from the movement emerged a group of women that would take on the fight as their own. These women included: Elizabeth Cady Stanton, Lucretia Mott, Susan B. Anthony, Alice Paul, and Carrie Chapman Catt. They led the charge by lobbying Congress and at the White House, and used their voices to give women in America a chance at equality.

Bella Abzug Women's Equality Day
Representative Bella Abzug
Women’s Equality Day
In 1970, over 50,000 women marched in New York City at the Women’s Strike for Equality March, fighting for a change in childcare and abortion policies in the United States. A year later, in 1971, Congress passed a resolution designating August 26th as Women’s Equality Day. The law was first introduced by Bella Abzug, and technically states that the president, “authorized and requested to issue a proclamation in commemoration of that day in 1920 on which the women in American were first granted the right to vote.” While this is not law, every president from Richard Nixon to Barack Obama has declared August 26th as Women’s Equality Day.

McHenry Savings Bank applauds how far women have come and celebrates them on this day and every day. Visit us online today at or call 815-385-3000. At McHenry Savings Bank, we are committed to customers and our community.


Monday, July 2, 2018

6 Smart Money Moves for New College Graduates

College graduate tips
More than 70 percent of college graduates began their career owing more than $37,000 in student loans in 2017. Considering the additional living expenses they’ll soon face, new college graduates would be wise to focus on their financial future right now, says McHenry Savings Bank. McHenry Savings Bank (“MSB”) has highlighted six smart financial decisions college graduates should consider to position themselves for financial success as they embark on their next phase of life.
“The habits new graduates develop right now will have a big effect on their financial future,” said Jim Zak, Vice President of Retail and Small Business. “Living expenses add up quickly once you’re out on your own, and many young adults who didn’t plan ahead are delaying major milestones like getting married or buying a home because of their financial situation. The good news is that you can have a bright financial future if you think strategically about money right out of the gate.”

College Graduates

McHenry Savings Bank recommends the following financial tips for new college graduates:
  • Live within your means. Supporting yourself can be expensive, and you can quickly find yourself struggling financially if you don’t take time to create a budget. Calculate the amount of money you’re taking home after taxes, then figure out how much money you can afford to spend each month while contributing to your savings. Be sure to factor in recurring expenses such as student loans, monthly rent, utilities, groceries, transportation expenses and car loans.
  • Pay bills on time. Missed payments can hurt your credit history for up to seven years and can affect your ability to get loans, the interest rates you pay and your ability to get a job or rent an apartment. Consider setting up automatic payments for regular expenses like student loans, car payments and phone bills. Take advantage of any reminders or notification features. You can also contact creditors and lenders to request a different monthly due date from the one provided by default (e.g., switching from the 1st of the month to the 15th).
  • Avoid racking up too much debt. Understand the responsibilities and benefits of credit. Shop around for a card that best suits your needs, and spend only what you can afford to pay back. Credit is a great tool, but only if you use it responsibly.
  • Plan for retirement.  It may seem odd since you’re just beginning your career, but now is the best time to start planning for your retirement. Contribute to retirement accounts like a Roth IRA or your employer’s 401(k), especially if there is a company match. Invest enough to qualify for your company’s full match – it’s free money that adds up to a significant chunk of change over the years. Automatic retirement contributions quickly become part of your financial lifestyle without having to think about it.
  • Prepare for emergencies. Hardships can happen in a split second. Start an emergency fund and do your best to set aside the equivalent of three to six months’ worth of living expenses. Start saving immediately, no matter how small the amount. Make saving a part of your lifestyle with automatic payroll deductions or automatic transfers from checking to savings. Put your tax refund toward saving instead of an impulse buy.
  • Get free help from your bank. Many banks offer personalized financial checkups to help you identify and meet your financial goals. You can also take advantage of their free digital banking tools that let you check balances, pay bills, deposit checks, monitor transaction history and track your budget.
Learn more about how McHenry Savings Bank can assist you in meeting your financial goals by visiting the website or call a Customer Service Representative to learn more at 815-385-3000.

Monday, June 25, 2018

5 Tips for Increasing Your Online Security

Right now, all around the world, there are people who want to use your personal information, sometimes in devastating ways. You may ask yourself, “Why me?” and it may have to do with how safe your information is online. By taking the five simple steps below, you can increase your online safety and not worry about possible headaches down the road.
  1. Change Your Passwords: you should change your passwords often when it comes to your online accounts. Change them to something you’ll remember, such as an important day, place, or event that happened. Many sites even let you use spaces in your passwords, so you can strengthen your new one even more by making it a sentence. You should also avoid using the same password for multiple sites; once a hacker has one password, they can easily figure out if it’s being used for multiple accounts.
  2. Use Two-Factor Authentication Whenever Possible: most people are aware of two-factor authentication, even if you’re not sure what it’s called. This is when you enter your password and are then directed to a page that asks you an additional question, such as “What was the name of the street you grew up on?” or “What was the name of your first pet?” This type of authentication adds another layer of defense against hackers who want your personal information.

  3. Delete Old Accounts: if you have accounts on sites that you no longer use, make sure to deactivate your account. These old accounts can contain valuable personal data, even if you barely used them, so it’s important to delete your account as soon as possible.
  4. Do An Information Check: Taking steps in protecting your information is crucial, however, what if some of your information has already been stolen? There are certain security websites you can use, like to get more information on the status of certain accounts, and lets you know if there are any breaches you should be worried about. 
  5. Start Encrypting All of Your Messages: you can add encryption to email accounts to increase security on your personal messages. Adding encryption will scramble all of your messages so that no one but the intended receiver will be able to read them.
It’s important to keep all of your online information as safe as you possibly can, however, if you have questions about your banking security, McHenry Savings Bank would love to answer any of your questions. And if you have an MSB debit card, please download the FREE SecurLOCK app for mobile devices to set up alerts for transactions on your card. You will also have the ability to turn off or turn on your card right from your mobile device. Learn more about SecurLOCK at this link: Contact us today at 815-385-3000 or visit our website to learn more about our services.