News from Skowhegan Savings

Issue: #15

July 2010

Greetings!

Gardens are bursting with early summer produce, as the sunny hot days appear to have benefited our fruit and vegetable plants. Speaking of gardens, in Skowhegan we were happy to help support the creation of and join in the grand opening celebration for the Children's Community Garden at the local Farmer's Market downtown. It's meant to be a living, growing, educational tool to teach children about gardening, healthy eating and where food comes from. It is also planned that food from the garden will be used in cooking classes to be held in the Grist Mill that is under renovation to transform the old jail facility.

As July continues and we head into August, many of us will be taking road trips throughout New England and beyond. Maine has 11 National and State Scenic Byways throughout the state. One of these routes, the Old Canada Road, extends 78 miles along Route 201 from Solon to the Canadian border. Many points along this route have historical significance and trace Benedict Arnold's route to Québec. In order to share this information with residents and tourists alike, the organization that manages the Byway is establishing a mobile/smart phone application that will enable users to download information at points of interest along the Byway. Skowhegan Savings is happy to support this project that will boost our region's tourism opportunities.

If you are thinking about boosting your own bottom line, check out this month's features on direct deposit and knowing when the time is right to grow a business.

Happy Summer.

Sincerely,

Call Customer Service w/ questions on eTegrity or Electronic Documents
John Witherspoon
President & CEO

DIRECT DEPOSIT: MYTHS VS. FACTS

By Shirley Lewis, Skowhegan Branch Manager

Shirley Lewis, Skowhegan Branch Manager

Did you know that when offered by employers, direct deposit is chosen by over 75% of workers? It is a quick, easy and secure way to receive your paycheck - and state and federal benefits. Unfamiliar with direct deposit or not sure if you or your company should take advantage of this system? Below, a few common misconceptions about direct deposit are corrected.

MYTH: Receiving paychecks or benefit payments in the form of a paper check gives you more control over your money because you can deposit it at your bank and it's convenient for you.

FACT: With direct deposit your money goes into your account at the same time each month, eliminating the risk of stolen checks and forgeries and helping protect you from identity theft.

MYTH: Switching to direct deposit is time-consuming and I don't know how to do it.

FACT: Enrolling in direct deposit is usually fast and easy, whether you receive a paycheck or a government benefit. If you receive Social Security or Supplemental Security Income, you can sign up for direct deposit in less than 5 minutes by calling the Go Direct toll-free helpline at 800-333-1795, enrolling online at www.GoDirect.org, or signing up at your local branch of Skowhegan Savings.

MYTH: People who do not have a bank account should not consider direct deposit.

FACT: There are options available if you have not yet signed up for an account. Call the U.S. Treasury's Go Direct helpline at 800-333-1795 to learn more. Skowhegan Savings also offers several account options that may be right for you.

MYTH: If you use direct deposit, you will not know when your money is in your account.

FACT: You can be sure your money is in your account by the time your bank opens on payment day. Paper checks can get lost or stolen, but with direct deposit your money is in your account on time, every time. You can also always check your balance through online banking and confirm the deposit.

MYTH: Direct deposit does not really save time because the check still must be mailed to the bank.

FACT: With direct deposit your federal benefit payment is electronically transferred to your bank account. The payment process is completely paperless.

MYTH: Direct deposit is not a trustworthy way to receive federal benefit payments.

FACT: Direct deposit is completely reliable. You are 30 times more likely to have a problem with your federal benefit check than with your direct deposit payment.

MYTH: Direct deposit is not as safe as receiving a check because it is sent over the Internet.

FACT: Direct deposit works by transferring funds directly into your account through a highly secure electronic banking system - not the Internet. It is the same system used by the world's leading financial institutions.

MYTH: Direct deposit is expensive.

FACT: Most banks, including Skowhegan Savings, do not charge you to sign up for direct deposit. In fact, some even may waive your monthly checking account fee if you have direct deposit.

If you are an employer looking to save paper and money by switching to direct deposit, or if you are an employee who'd like your paychecks to be directly deposited to your account, our Customer Service team can help. Contact us at 1-800-303-9511 or stop by your local branch office to sign up.

Information compliments of: Money Matters; FDIC Money Smart-Financial Education Curriculum, Participant Guide

3 Signs Your Business is Ready for More

By Skowhegan Savings Commercial Lending Team

Commercial Lending Team Members: (left to right) Jack Ducharme, Debbie Knox
and Kurt Maynard.

You're a business owner and you think you can do more - make more products, service more customers, open new stores, expand your reach into new markets - how do you determine if the time is right? There are rarely any sure bets in business, but the following three things are excellent indicators your company may be ready for growth:

Do you have excess cash flow? If profits are good and you are exceeding what you need to cover expenses and regular re-investment in your enterprise, it's a good sign. Depending on the amount of excess cash flow you have, you may be able to self-finance the type of expansion you are thinking about, or you may need a loan. Even if you finance your growth, a loan officer will look closely at the existing cash flow you have to determine any loan financing.
Do you have a strong, loyal and diverse customer base? In any business, it is easier to retain existing customers than earn new ones or recapture old ones. You want to be certain that what you are selling can go the distance and rely on a steady stream of business while in a growth stage.
Do you need more capacity? Is there a demonstrated need for you to grow? Signs of this include if there are promising markets you can move into or you have a new product or process that will fill a growing consumer niche. Also, if regular operations have you clamoring for more space, equipment or employees to keep up with your existing orders, you may be ready to expand.

If the answer to all these questions is a resounding yes - there's a great chance your business is set for growth. If you are thinking about expanding, any of the commercial loan officers at the Bank can help you go through your existing and projected business statements and help determine if the time is right and what, if any, financing you might need to take the next steps.

Skowhegan Savings, founded in 1869, is an independent mutual savings bank dedicated to strengthening the Maine families, businesses and communities it serves. Named as one of Maine's Best Places to Work in 2009, Skowhegan Savings' team of friendly, committed employees takes pride in delivering personalized, competitive banking services with integrity and putting the needs of their customers first. An innovative and progressive approach to banking ensures their customers enjoy a banking experience that is quick, easy and convenient. Skowhegan Savings' nine Maine branches include two locations in Skowhegan, as well as locations in Belgrade, Bingham, Dexter, Fairfield, Madison, Norridgewock, and Pittsfield. For more information, visit www.skowsavings.com or contact Customer Service at 800.303.9511.

In This Issue

Direct Deposit: Myth vs. Facts

3 Signs Your Business is Ready for More

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