In today’s fast-paced business world, fraud prevention is more critical than ever, and one powerful tool that can protect your business is Positive Pay. With check fraud on the rise, all businesses need an effective way to ensure that only legitimate transactions are processed. Positive Pay acts as your business’ fulltime digital watchdog, validating every check before it’s cashed.
The Benefits of Positive Pay for Businesses
Positive Pay is a secure and efficient method that helps businesses prevent check fraud and manage their financial transactions more effectively. How it works is business owners provide a list of issued checks to the bank to watch out for. This will ensure that only legitimate checks are processed. Here are some key benefits of Positive Pay for businesses:
Fraud Prevention: Positive Pay is a strong defense against check fraud. It requires businesses to submit a file with details of issued checks, such as the check number, amount, and payee. The bank matches these details with the checks presented for payment, flagging any discrepancies and preventing unauthorized transactions.
Improved Cash Flow Management: Businesses gain greater control over outgoing payments. Since every check is validated before being cleared, companies can monitor and manage their cash flow more accurately, ensuring funds are available for legitimate transactions.
Reduced Risk of Errors: Human error is minimized by automatically verifying checks against a list of authorized transactions. This reduces the chances of mistakes that could lead to financial loss or issues with vendors and customers.
Streamlined Operations: Automating the check verification process frees up time for accounting teams to focus on other important tasks. Positive Pay systems are typically integrated with accounting software, making reconciliation faster and more efficient.
Positive Pay In Action
In addition, to sharing all the benefits, we want to show you three real life examples of how Positive Pay helped save our customers thousands of dollars in losses.
A forged check was caught, saving the customer $9,697. After receiving a call from their vendor stating payments were not received, the customer was concerned. Our team advised them to remove that specific check from their positive pay list in order for it to be flagged in the event it was presented to be cashed or deposited. Within 48 hours, the check was presented on the account. Thanks to Positive Pay, the customer was able to review the check and notice that it was altered. They flagged it as forgery and returned the check.
Altered checks that had been stolen in the mail were detected, saving the customer over $69,000. A customer had reason to believe that outgoing mail, including checks, had been stolen. They were able to review Positive Pay, which stopped two altered checks from clearing the account.
Endorsement forgery was noticed, saving the customer over $900. A Cornerstone Bank Operations Specialist noticed that a check coming through Positive Pay had a different endorsement format than usual. After reaching out the customer we learned the endorsement was forged and the check was not processed.
Just as Positive Pay has protected these three business, it can do the same for yours. If you want to protect your bottom line and streamline your operations, please reach out to your banker today or email cm@cornerstone.bank. For more information and to see this tool in action check out our informational video here.
What’s the difference between a checking account and a savings account? Don’t feel bad if you don’t actually know. It’s one of those adulting things that everyone assumes is understood without, well, any explanation at all! Fear not, friends. This quick guide walks through key differences and tips for setting up your accounts clearly and simply so you can make confident decisions that suit your unique deposit needs.
In this article we’ll cover:
What is a checking account?
What is a savings account?
Key differences between checking accounts and savings accounts and why they matter.
Tips for choosing which account to use
Tips for using additional banking services
Where to find more resources and information
What is a Checking Account?
A checking account serves as a hub for everyday transactions, offering convenience for depositing, withdrawing, and paying for expenses. It provides a secure and easily accessible way to manage your finances while keeping a record of transactions that also helps you monitor spending habits. Additionally, checking accounts often come with features like overdraft protection, ensuring that your transactions are smooth and reliable.
Laura Bryant, Senior Personal Banking Manager at Cornerstone Bank, recommends asking your banking professional questions upfront. “When you’re opening an account, don’t hesitate to ask questions. Sometimes we bankers use jargon that might go over your head, but there’s no such thing as a dumb question. The better we understand your needs, the better we can guide you to the right account.”
For those interested in earning interest on their checking account balance, Cornerstone Bank offers options tailored to your needs. “We have interest-bearing checking accounts, like our Interest Rewards account and our Gold account. The Gold account is especially great for customers 50 and older, offering higher interest for larger balances. It’s a great way to make your money work for you,” Laura explains.
What is a Savings Account?
A savings account acts as a secure storage spot for your funds, providing a simple way to save for future needs and track your financial growth. It offers easy access to your money and the ability to deposit money at any time. A potential feature of a savings account could be the opportunity to earn interest over time. This means, in addition to securely storing your funds, your savings may grow through the accumulation of interest, helping your money work for you!
How Checking and Savings Work Together
Though the difference between checking and savings accounts may seem obvious, they serve distinct purposes, and can work in tandem to help you achieve your financial goals. Laura explains how these accounts complement each other: “Your checking account is a transaction account—buying groceries, gas, and other daily needs—while your savings account is for financial goals like vacations, unexpected expenses, or college. The two can definitely work together. For example, connecting your savings to your checking can help cover overdrafts, adding a layer of security while you focus on your financial goals.”
Knowing the purpose of each account type can help you more effectively manage your money. Here is a breakdown to help you decipher which account aligns best with your financial objectives:
Checking Account
Savings Account
Purpose
Primarily for daily transactions and immediate financial needs.
Geared toward accumulating money over time and/or saving for future goals.
Access to Funds
Quick access to funds.
May have restrictions on withdrawals.
Transaction Frequency
Used frequently for everyday expenses.
Not intended for frequent transactions; designed for saving and accumulation.
Interest
Generally does not accrue interest.
May offer potential to earn interest, allowing your savings to grow over time.
Financial Goals
Ideal for managing short-term cash flow and immediate finances.
Supports savings for future endeavors, emergencies, large purchases, or long-term objectives.
Tips for Choosing Checking & Savings Accounts
When using your checking and savings accounts, consider both their features and how they protect your finances. Checking accounts, for instance, often come with debit cards for convenient purchases, but Laura emphasizes the importance of understanding the risks involved: “Fraud is such a big topic nowadays. One way to protect yourself is to keep most of your money in your savings account and transfer funds to your checking account as needed. This way, even if someone gets access to your checking, they won’t drain all your savings.”
Let’s dive into more practical tips for using each of these account types based on your financial needs and goals. Here are some real-life scenarios that show the practical application of both accounts, as well as how they work together:
Emergencies
Emergencies, like a sudden car repair or medical bill, require immediate access to funds, which should be accessed through your checking account. However, maintaining a savings account can allow a quick replenishment of those withdrawn funds.
Future Education Expenses
If you’re saving for your child’s education or your own, a savings account is a strategic choice. The higher interest rates can help your education fund grow over time, providing a financial cushion when it’s time to cover costs like tuition, books, and living expenses.
Vacation
Vacations involve various expenses, from flights and accommodations to daily spending money. Using a checking account for these short-term expenses provides flexibility and easy access to funds during your travels. Simultaneously, consider using a savings account to build a travel fund, allowing you to set aside money specifically for your getaways, without compromising your budget.
Additional Banking Services
Once you’ve established a solid foundation with your checking and savings accounts, consider additional services to optimize your finances. Here are some options to explore:
Certificates of Deposit (CDs): If you have a lump sum of money that you won’t need anytime soon, CDs can be a helpful tool. When you put money in a CD, you agree not to touch it for a set period, which can range from a few months to several years. In return, banks usually offer higher interest rates than typical savings accounts, ensuring your money is growing. However, if you need to take your money out before the agreed-upon time, you may face penalties, so it’s important to be sure this is a good fit for your needs. Whether it’s a major future purchase, a down payment, or you’d just like to watch your savings grow, just make sure to choose a term that aligns with your goals and timelines.
Money Market Accounts: These accounts combine elements of both checking and savings, providing higher interest rates than a standard checking account, while maintaining liquidity. Money Market accounts usually come with check-writing privileges, making them suitable for short-term saving, where you may need occasional access to the funds. They are ideal for those looking to earn a bit more interest without sacrificing quick access to their money.
Credit products: Credit cards can be useful for managing short-term expenses and building credit, when handled responsibly. Look for credit cards with reward programs or cashback capabilities that align with your habits. Always pay attention to interest rates and terms to ensure that the card suits your needs.
Remember, these products should make your life and managing your money easier! If you’re ever unsure about your needs or the options that suit them, the team at Cornerstone Bank is here to help. Stop by or reach out to our team of experts for help.
That one tip that seems to be in every personal finance article? Budgeting: the unsung hero and quiet champion of financial advice. Sure, on the surface, budgeting may seem as exciting as watching paint dry. However, beneath its mundane appearance lies an incredibly important tool that can transform your financial position. Budgeting isn’t just about limiting spending or tracking every penny spent; it’s about gaining control, creating a plan, and working toward financial peace.
In this article we’ll cover:
How budgeting can lead to financial freedom
Assessing your current financial situation
Categorizing your income sources
Setting clear goals
Building your budget
Tracking your spending
How to review, adjust, and stay flexible
How Can Budgeting Lead to Financial Freedom?
Budgeting allows you to zoom out and get a clear picture of your finances as a whole—including how one individual part affects the other. It unveils where your money comes from and where it goes, providing you with the knowledge needed to make necessary changes and informed decisions. Without a budget, it’s easy to fall into a cycle of overspending, as you’re never fully understanding the effects those expenses have. Getting organized helps you allocate funds purposefully, reducing the likelihood of impulse purchases and common financial mistakes. By setting goals within your budget, you’re actively working toward your dreams. Whether it’s buying a home, traveling, or saving for retirement, budgeting helps you turn aspirations into achievable milestones. And when life throws you the occasional (or frequent) curveball, a well-crafted budget has your back. Here’s a guide to unleashing your ultimate financial sidekick: the budget.
Assess Your Current Financial Situation
Embarking on a journey toward financial stability through budgeting begins with taking a thorough look at the battle scars of your financial past. Think of this as an opportunity to learn from your own mistakes and set yourself up for a new chapter in your financial life! Start with a meticulous evaluation of your assets (your cherished financial holdings), and your liabilities (the obligations that constantly knock on your financial door). Take a look into your cash flow (the movement of money into and out of your finances) and subtract your income against your expenses. This allows you to gain invaluable insights into where your money streams in and out, making way for informed decision-making when forming your budget.
Your Current Financial Situation = income (assets) – expenses (liabilities)
Categorize Income Sources
The next crucial step is to categorize your income sources. This means not only recognizing where your money is coming from, but also distinguishing between various types of income streams. A huge help in this process is identifying the difference between passive and active income. Passive income, earned with little to no effort, can include investments, rental properties, and CDs (Certificate of Deposits) while active income involves direct work and participation, such as salaries. Establishing a balance between the two is a great way to increase financial stability. It’s a good idea to look for ways to diversify your income streams and explore opportunities for passive income, which can provide a solid foundation for meeting both your short-term and long-term financial goals.
Set Clear Goals
Setting clear financial goals is key when it comes to effective budgeting. Distinguishing between short-term and long-term goals allows you to make a sustainable plan. Short-term goals could be something like building an emergency fund or paying off credit card debt, while long-term goals are things like buying a home or a retirement fund. When prioritizing goals, consider their impact and urgency. Allocate resources toward short-term objectives that require immediate attention, while also consistently investing in long-term aspirations. This holistic approach ensures that you’re not only achieving immediate financial stability, but also laying the groundwork for your future needs.
“When it comes to setting clear financial goals, my advice would be to start by taking a look into what truly matters to you and understand your financial well-being,” says Justin Wentz, Personal Banker at Cornerstone Bank. “Then, prioritize your goals based on what’s most urgent or impactful. For example, paying off high-interest debt might come before saving for a vacation.”
A helpful way to go about this is to create measurable milestones along the way. This not only makes each goal more manageable, but it also gives you that sense of accomplishment and validation we all need—like the grown-up version of getting a gold star! Another helpful touch when finding a balance between short- and long-term goals is to automate your savings. This ensures that you consistently allocate funds towards your goals without even having to think about it. We can barely remember where we put our keys most days, so the less thinking the better!
Build Your Budget
Now you’re ready to construct your budget! “A reliable framework that we suggest is the 50/20/30 rule”, says Justin. “50% of your income goes toward essentials like housing, groceries, and gas, 30% to wants like vacations and dining out, and 20% to debt repayment and savings. This helps keep your immediate needs on track while also building towards your long-term goals, like retirement or buying a home.”
To help you get an idea of what this looks like, here’s an outline: Personal Monthly Budget Template. If you are an existing customer, please take advantage of the budgeting tool offered on our online banking platform.
Track Your Spending
Do not underestimate the importance of tracking your spending. Whether your preferred tracking tool is pencil and paper or the finest expense-monitoring software, consistency is key. By regularly monitoring your spending, you gain insights into your financial habits and priorities, allowing you to make informed decisions. Your budget is subject to change, whether because of seasonal expenses, unexpected costs, or shifts in your goals.
Review, Adjust, and Stay Flexible
Use periodic reviews and adjustments to fine-tune your financial plan. Be sure to admire your progress and achievements (remember that adult gold star) and identify areas for improvement. Being prepared for life’s changes and willing to adapt is crucial. Whether it’s a career shift, a medical expense, or a new family member, flexibility is your best friend. Your budget can remain effective and relevant, even when your circumstances change.
“I recall one couple who wanted to buy their first home but felt they couldn’t with their current finances,” Justin shares. “We worked on a budget that covered their current monthly expenses and also allocated a small amount of money each month to their savings account. When they realized that home ownership was a real possibility for them, they stuck to their budget, making changes when needed, and within a couple of years of budgeting and working on their credit scores, they were able to qualify to purchase a home. Small changes to your spending habits and setting goals can make a huge impact over time.”
And, when life does throw a curveball, Cornerstone Bank is just down the street and ready to help.
Take the Next Step Towards Financial Freedom
Ready to take control of your finances and start your budgeting journey? Contact us today to speak with one of our personal bankers, like Justin Wentz, who can guide you every step of the way. Whether you need help setting clear financial goals, building your budget, or reviewing your spending habits, we’re here to support you.
Justin Wentz VP Senior Personal Banker Direct:701-751-4643 NMLS: 997665
Now that we are entering into the holiday season, scammers are more active than ever. They use the excitement and commotion from the holidays to prey on a distracted audience. We have identified several of their tactics and want to help you learn how to identify and avoid them. Keep the joy in the holidays by staying vigilant against these common holiday scams.
Gift Card Scams: What do you get someone who doesn’t have an itemized Christmas list? A gift card, of course! Gift cards are a great choice, but are also a potential avenue to fraud.
Card draining: Scammers will go to retail stores and take card numbers and activation codes. Then reseal the card and packaging in hopes someone will purchase it and load it with funds. Scammers will patiently wait until a card is activated then immediately drain the card. This scam is especially frustrating because tracking down the culprit is extremely difficult. In order to avoid this scam, try buying gift cards that are near registers or close to employees as fraudsters are more likely to steal information form less monitored areas. If you are grabbing from a stack grab cards, go for the back of the rack in hopes that they haven’t been tampered with. Better yet, ask for a card from behind register to ensure secureness.
Online Contests: You may see contests across social media offering gift cards or other vouchers in exchange for simply completing a survey. Think twice before participating, as many times the survey is not legitimate and only exists as a means to capture your personal information to commit identify fraud. In order to avoid this scam, only interact with verified businesses. If the offer seems generous, it probably is too good to be true.
Package Scams: billions of packages were shipped during the last holiday season so it is not surprising that fraudsters have developed scams to go along with them.
Text Message: one of the most prevalent scams is involves receiving a text or email regarding information on a recent package/order and invites you to click on a link. There are many illegitimate reasons they will give. Here are a few we have seen:
Click to view tracking updates
Click to view your new estimated delivery date
Click to pay additional shipping fees
Click to cancel cancellation
Click to leave delivery instruction.
Fraudsters will often send urgent messages to get you to react. To avoid this scam, do not click on any links regarding orders/deliveries. Instead go to the vendors site you ordered the package from and check on the order status from there. To weed out fake notifications from the real ones, consider tracking them through an app like Route. This allows you to track all your orders from various carriers in one convenient location!
Missed Packages: Missed packages are the worst especially when you are wanting to get them under the tree before Christmas morning! Fraudsters know this so they have created a tactic where they will leave a note on your door claiming to have a package for you that couldn’t be delivered. This note usually contains a number to call to reschedule the delivery. Once you call you will be asked questions around verifying your identity in order to confirm the correct package, which ultimately could expose your personal information. If you receive a missed delivery note, do not call the number on the sheet. Go to the carriers website and find there customer service number and call that regarding the package to confirm its legitimacy.
We hope you’ll enjoy the holidays without the stress of dealing with fraud. But, if you’re a victim, here’s what to do:
Even if you simply encounter a scam, the FTC encourages you to report it to help others avoid becoming a victim. We hope this article helps you, and we wish you a jolly scam-free holiday!
Dakota Business Lending is an impact-driven organization with a desire to join small businesses on their entrepreneurial journey. With a commitment to the success and growth of businesses in North Dakota, Minnesota, and Montana, they provide financing solutions through collaborative partnerships to grow the economy and create and preserve quality jobs.
One of the most common misconceptions is that there are few resources available for entrepreneurs throughout North Dakota. With a vision to showcase the multitude of valuable resources that our state has to offer, the Vault contains a comprehensive library of small business programs that exist today.
When you visit the website you can find and apply for support from a variety of organizations that exist to help businesses in specific industries and stages or growth. Big or small, woman or minority owned, rural or urban, start-up or existing – you name it. Explore all that North Dakota has to offer for you and your business, right at your fingertips then once you have explored reach out to one of our trusted experts to help guide you to the best possible financial options!
Can You Spot a Phishing Scam?
Every day, thousands of people fall victim to fraudulent emails, texts and calls from scammers pretending to be their bank. And in this time of expanded use of online and mobile banking, the problem is only growing worse. In fact, the Federal Trade Commission’s report on fraud estimates that American consumers lost a staggering $10 billion to phishing scams and other fraud in 2023—an increase of 13.6% over 2022.
It’s time to put scammers in their place.
Online scams aren’t so scary when you know what to look for. And at Cornerstone, we’re committed to helping you spot them as an extra layer of protection for your account. We’ve joined with the American Bankers Association and banks across the country in a nationwide effort to fight phishing—one scam at a time.
We want every bank customer to become a pro at spotting a phishing scam—and stop bank impostors in their tracks. It starts with these four words: Banks Never Ask That. Because when you know something sounds suspicious, you’ll be less likely to be fooled.
These four phishing scams are full of red flags:
Text Message: If you receive a text message from someone claiming to be your bank asking you to sign in, or offer up your personal information, it’s a scam. Banks Never Ask That.
Email: Watch out for emails that ask you to click a suspicious link or provide personal information. The sender may claim to be someone from your bank, but it’s a scam. Banks Never Ask That.
Phone Call: Would your bank ever call you to verify your account number? No! Banks Never Ask That. If you’re ever in doubt that the caller is legitimate, just hang up and call the bank directly at a number you trust.
Payment Apps: Beware of text messages from someone claiming to be your bank saying your account has been hacked. The scammer may ask you to send money to a new account they’ve created for you, but that’s a scam! Banks Never Ask That.
You’ve probably seen some of these scams before. But that doesn’t stop a scammer from trying. For tips, videos and an interactive quiz to help you keep phishing criminals at bay, visit www.BanksNeverAskThat.com. And be sure to share the webpage with your friends and family.
It is important for everyone to understand the basics when it comes to credit scores. Credit scores play a crucial role in your ability to secure loans, rentals, and more! In this article, our goal is to provide you with a strong understanding of credit scores so that you can set yourself up for success!
Who has a credit score? Everyone who has at least one line of credit open under their name. If you open a credit card at Target for example, after a few months of activity you will receive a credit score.
What is a credit score? It is a number from 350-800. Ultimately, it is a rating calculated based on if you make your statement payments on time or if you do not. This number helps a bank determine how likely you are to pay back the borrowed money if they were to give you a loan.
What factors go into your score?
Paying bills on time.
Credit usage (10-30% is ideal – If your card has a $10,000 maximum don’t spend more than $3,000).
Amount of credit lines open.
Age of credit lines and credit history.
Where can you check your credit score?
Through your bank or credit union.
Through the credit bureau directly.
Through your credit card’s website.
Important things to note: Checking your credit score can impact it! There are two types of credit score pulls:
Soft Pull — usually when you personally check your credit score. Will not show up on a credit report.
Hard Pull— usually when you are opening a new line of credit. Will show up on a credit report and may affect your score.
When is your credit score used? When you want to borrow money from the bank for a personal loan, student loan, a mortgage on your house and more.
How do you read your credit score? The higher the score the better! Below are the common ranges.
So why is a credit score important? Your credit score is an indicator of your financial responsibility. It can tell anyone who is going to lend you money how likely you are to pay back that loan. It is important to understand the components of a credit score, that way you can set yourself up for success!
Ready to check out your score? Try our Credit Sense tool in Online Banking. With Credit Sense you can access your credit score, full credit report, credit monitoring, financial tips and education. Plus, you can do all of this without impacting your credit score!
If you recently received a new debit card, please use the following tips for activating your card and setting your PIN.
Use the Cornerstone Bank Personal App. Once logged into the app, click on the “Cards” icon at the bottom of the screen. Swipe through the card images at the top to find the card number you’d like to activate, and click “Activate Card”. To set your PIN, stay in the “My Cards” screen, scroll down to the very bottom and select “Set PIN” then follow the prompts.
Call the number on the card to activate. Be sure to call from the phone number on file with us. If you have any trouble, please reach out to your local Cornerstone Bank or call debit card support at (800) 992-3808 (on the sticker) or (800) 567-3451.
Activate your card and set your PIN as soon as the card arrives to ensure it’s ready to use when you need it.
Scammers are constantly trying new tactics to steal information, identities and money. With tax season upon us, it is important that we are all aware of the latest tax scam. We are seeing more instances of texts and emails regarding a “tax rebate” or some other tax refund or benefit.
Here is what you need to know about these scams so that way you can safely avoid them. If you receive an unexpected message stop, think and do not click any links. Despite how harmless it may seem, clicking on a link can expose your personal information and make your device vulnerable to malware.
Here is an example of what a suspicious text might look like:
When dealing with unexpected messages like the one above, here are the top things to remember:
The IRS will not call, email or text to contact you for the first time. They will always send you a letter first. If you are uncertain if it is the IRS messaging you, please call the IRS directly at 800-829-1040 to confirm.
You can find the status of any pending refund on the IRS official website at: www4.irs.gov/wmr/.
Do not click on any links and do not share any personal information.
Do not respond to the message. By responding, you can open yourself up to more scamming attempts. Scammers will often take responses and classify them as active numbers or email addresses and will then compile lists to sell to other cyber criminals.
Report these messages to the IRS. Forward a screenshot or the email as an attachment to phishing@irs.gov.
We all must have a healthy level of skepticism when dealing with information requests. These cyber criminals only need to be right once, we as consumers need to be right every time, so make sure you stop and think before you proceed. If you clicked a link in one of these messages and believe you may have shared personal information, please file a report at IdentityTheft.gov to get a customized recovery plan.
As of January 1, 2024, many companies in the U.S. are required to report Beneficial Ownership Information (BOI). This means information about the individuals who ultimately own or control the company must be reported to the Financial Crimes Enforcement Network (FinCEN).
Who needs to report
You may need to report if your company is one of the following: a corporation, a limited liability company (LLC), or was otherwise created in the U.S. by filing a document with a secretary of state or similar office under the law of a state or Indian tribe; or a foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing. You can view Chapter 1.2 of FinCEN’s Small Entity Compliance Guide for exemption checklists.
If your business is required to report, you will need to identify which deadline applies to you.
If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025, to report BOI.
If your company was created or registered on or after January 1, 2024, and before January 1, 2025, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
If your company was created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
How to report
To file your report, visit FinCEN’s website: www.fincen.gov/boi. Once your submission is complete you will receive a confirmation of receipt. Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
