Tips on Choosing a Financial Institution & Getting a Bank Account

Having your own bank account is an important step in maintaining financial independence. While the process of opening an account is a simple one, the decisions involved in choosing a financial institution and an account that meets your needs require careful analysis of your situation and your options.

How do I know what type of financial institution I should use?

To help you decide whether a bank or credit union is right for you, consider their differences:

· Both can offer free or low-cost checking, but credit unions often offer higher interest rates on their savings accounts, potentially earning you more money.

· Because banks are often bigger, they can have more locations and offer more financial services than credit unions including things like: retirement planning and investor services.

· Both have ATM services, but banks often have more ATM branches than credit unions.

· Banks are owned by stockholders, while credit unions are owned by their members – those using their services.

What should I consider when I choose a financial institution for the first time?

Consider these questions to determine if a bank or credit union will meet your ongoing needs:

· Does the bank or credit union have locations that are convenient to your home and/or work?

· Will their business hours fit into your schedule?

· Are there fees and/or penalties associated with their different accounts? If so, what are they?

· Which accounts pay interest and what are the interest rates associated with those accounts?

· Will you receive checks or an ATM card so that you can access money when you need it?

· How many ATM locations do they have and are there any fees for ATM transactions?

· Do they have telephone or online banking available if you want to manage your money without going into the bank or credit union?

· Which banks do your friends and family use, and what do they like or dislike about them?

What type of account is right for me?

Most financial institutions offer basic checking and savings accounts.

· Checking accounts offer easy access to your money by writing checks or using an ATM card for withdrawals at an ATM machine. They may require a monthly fee and usually don’t earn interest.

· Savings accounts help you save the money you earn while paying small amounts of interest on your account. They have no monthly fees, but only allow access to your money through a few transactions each month and generally require keeping a minimum account balance.

Many financial institutions will link your checking and savings accounts for overdraft protection. So, if you accidently write a check for more money than your checking account contains, the bank or credit union will automatically move money from your savings account to cover the difference.

For more information about choosing financial institutions and other economic opportunities, go to the CFED website at www.cfed.org.

Any questions may be directed to: rsi5@srt.com

Pinch Those Pennies - Avoid "Fast Cash"/"Quick Refunds"

Beware of refund anticipation loans, sometimes called ‘Fast Cash’ or ‘Quick Refund’. These services may get you a quick refund, but they have very high interest rates and can end up costing you hundreds of dollars and are often considered predatory lending. Having your own checking account in a financial institution will allow you to cash checks for free as well as having the option to take a loan if needed. Avoiding Fast Cash/Quick Refund services will go a long way in saving you money. This is also true regarding your day to day financial needs. Using your credit union or bank for a loan or for cashing checks instead of Fast Cash/Quick Refund services will save you a large amount of money over time.

Any questions may be directed to: rsi5@srt.com

One-Time Stimlus Payments Disregarded

If you receive SSI, you will be receiving a one-time payment of $250 - hopefully in May. That's good news #1.

Good news #2 is that those payments will not affect your SSI in any way! The one-time payments are disregarded by SSA completely.

Any questions may be directed to: rsi5@srt.com

Obama Stimulus Plan One-Time Payments to SSA Beneficiaries

Center of SSA homepage, www.socialsecurity.gov, now has a button Economic Stimulus One-Time Payments.
As of now, information states:
"President Obama recently signed the American Recovery and Reinvestment Act of 2009. This act provides for the one-time payment of $250 to individuals who get Supplemental Security Income (SSI) or Social Security benefits."

SSA expects everyone who is entitled to a payment to receive it by late May 2009. No action is required on your part.
SSA is currently working on the details regarding how they will issue nearly 55 million one-time payments to beneficiaries.

When more information becomes available, SSA will promptly post it here. Updates can also be found at this blog.

Please be on the lookout for economic stimulus scam's. As always, people should protect their personal information.

Any questions may be directed to: rsi5@srt.com

How can I get my tax refund quickly?

Filing your taxes electronically is the best way to get your refund quickly. Many Volunteer Income Tax Assistance program sites offer free electronic filing. Also, having the IRS deposit your refund directly into your bank account can also help you get your refund faster. You can also use the IRS Free File website to file your taxes. Free File is a free federal income tax preparation and electronic filing program for eligible taxpayers. You may access free commercial online tax preparation and electronic filing services through the IRS.gov website. Eligible taxpayers may prepare and file their federal income tax returns using commercial online software provided by the Free File Alliance companies. Free File is only available to taxpayers who have less than roughly $54,000 of gross income in 2008. Individual company offers may be limited to specific states and include other criteria. Carefully review the Free File offer criteria before selecting the company. Each participating software company sets its own eligibility requirements. You can find a Free File service that best meets your needs at http://www.irs.gov/efile/article/0,,id=118986,00.html.

Any questions may be directed to: rsi5@srt.com

What if I need help filing a tax return?

You may qualify for FREE help to file a tax return and claim the Earned Income Tax Credit through the Volunteer Income Tax Assistance Program. This program offers help to people with low-to-moderate income (generally those earning about $40,000/year or less) who cannot prepare their own tax returns. Certified volunteers receive training to help prepare basic tax returns and are then available to help at community and neighborhood centers, libraries, schools, shopping malls, and other convenient places. To find the Volunteer Income Tax Assistance program site nearest you, call 1-800-829-1040.

Any questions may be directed to: rsi5@srt.com

How do I claim the Earned Income Tax Credit?

You can claim the Earned Income Tax Credit when you file your annual tax return. You can also choose to receive part of your refund payment sooner by participating in the Advance Earned Income Tax Credit program. To enroll in the Advance Earned Income Tax Credit program, you will need to complete a W-5 form, which you can get from your employer, or, from this website: http://www.irs.gov/pub/irs-pdf/fw5.pdf. If you participate in the Advance Earned Income Tax Credit program, you still need to file an annual tax return and claim the Earned Income Tax Credit.

Any questions may be directed to: rsi5@srt.com

What is the Earned Income Tax Credit?

If you’re like millions of Americans, you work hard but you don’t earn a high income. The Earned Income Tax Credit is a tax credit designed to put money back in the pockets of working people with low-to-moderate incomes. This tax credit can reduce your taxes and help you keep more of what you earn. Filing for the Earned Income Tax Credit means that you could receive a refund payment from the Internal Revenue Service.

To get the Earned Income Tax Credit, you must meet certain requirements and file a tax return, even if your income from working is low enough that you are not required to file a return.

Filing for and receiving a refund payment from the Earned Income Tax Credit has no effect on many other public benefits you may get. In most cases, the Earned Income Tax Credit payment will not be counted against your eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, Workers with Disabilities (WWD) Medicaid Buy-In or Temporary Assistance for Needy Families (TANF). Because the income is a federal return it will not impact any federal programs you participate in, but it is possible that it could impact some of the state funded programs you participate in. Generally the money cannot impact you at all in the month you received it. It is only in the following months that the gross amount of income may impact your benefits.

A Community Work Incentives Coordinator (CWIC) can tell you if and how you might be impacted. CWICs provide a free service to Social Security beneficiaries. You can talk to a CWIC if you are unsure of what public benefits you get, or if you need more information about the impact income will have on the benefits you receive. You can find the nearest CWIC at https://secure.ssa.gov/apps10/oesp/providers.nsf/bystate or by calling the Social Security hotline at 1-800-772-1213 and asking for the closest Work Incentive Planning and Assistance center.



Any questions may be directed to: rsi5@srt.com

Quick Reminder on Ticket To Work

Ticket to Work is an employment program for people with disabilities that are interested in working. Any recipient of SSI or SSDI is eligible to participate in this program. The beneficiary assigns their ticket to the Employment Network (EN) of their choosing and the EN will provide services to help the beneficiary obtain and maintain gainful employment. If a beneficiary decides to participate in this program, they are protected from medical continuing disability reviews (CDR).

Participating in the Ticket to Work program is free to SSI/SSDI beneficiaries. The services provided by an EN can include: help with applications or resume building, help with how and where to look for employment, interview training, and other specific individual needs.

If interested in assigning your ticket, you can find a list of Employment Networks in your area at: www.yourtickettowork.com

Any questions may be directed to: rsi5@srt.com