New Federal Reporting Requirement

Beneficial Ownership Information

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.

For more information

Please reference our BOI Fact Sheet or visit www.fincen.gov/boi.

Tips To Avoid Holiday Scams

Couple laying on the floor looking at a laptop with Christmas decorations in the background

‘Tis the season to be wary of deals that are too good to be true, emails that want to know too much about you, and fake charities that want your money too. While the holidays are a great time for giving, crooks target them for taking – whether it’s your personal information or your money.

Tips for avoiding common holiday scams

In this article we will cover:

  • Online deals
  • Email scams
  • Charity scams

Beware of online deals that seem too good to be true.

If little-known sites are showing prices far below normal or if they claim to have popular products that major retails can’t keep in stock, think twice before ordering – you could lose your money. This kind of scam tries to take advantage of your desire for a great deal.

Be cautious. You’ll be safer paying more at a business you trust and has a good reputation.

Don’t get stung by email scams.

These come wrapped in many ways.

Some impersonate your financial institution and ask for personal or account information. And others pretend to be shipping companies, telling you they need personal information or money before a gift can be delivered. Others try to get you to download ‘free’ holiday software or to click for a special greeting.

Most are fake and are trying to steal personal information, account numbers, or infect your computer with malware. Never click on links or download files from these unsolicited emails. If you suspect one might be real, it’s always best to search for the business’ official web address or call their official phone number to see if it is legitimate.

Don’t give blindly.

Don’t fall for charity scams during this time of goodwill. Instead of responding to charity emails or someone calling and claiming to represent a charity, find a way to donate directly to the charity of your choice. And always check to make sure a charity is legitimate before giving.

Be alert.

While you should regularly check your debit and credit card online accounts or statements for irregularities, it’s especially important to inspect them for unexpected purchases during the holidays. Report any problems immediately.

And also keep in mind that it’s safer to pay with credit or debit cards instead of cash because cards provide you with consumer protections against fraud and other problems.

So be careful. And don’t let a scam spoil a great holiday.

Cyber Security Tips To Keep You Safe

Woman scrolling her phone reading about cyber security tips.

In today’s digital age, cyber security has become an essential aspect of our daily lives. With the increasing number of cyber attacks and data breaches, it has become crucial to take necessary steps to protect your personal and sensitive information from falling into the wrong hands. In other words, you are the first step to protecting your personal information!

In this article we will cover:

  • What is Cyber Security
  • Tips for keeping your bank account secure
  • Some General Cyber Security tips

What is Cyber Security?

Cyber security involves a range of practices and measures that are designed to safeguard our digital devices, networks, and data from unauthorized access, theft, and damage. From using strong passwords and two-factor authentication to regularly updating our software and being wary of suspicious emails or links, there are various ways to enhance our cyber security.

By taking the necessary precautions, you can prevent cyber criminals from stealing your personal information, financial details, and other valuable data. Cyber security is not just about protecting yourself, but also about safeguarding your businesses and communities from cyber threats.

Protecting Your Bank Accounts From Cyber Threats

Cyber security is of the utmost importance, especially when it comes to protecting your bank accounts. With the rise of online banking and mobile apps, it’s more important than ever to take steps to secure your financial information.

Here are some tips to help keep your bank account information protected:

  1. Banks and government agencies will never send an unsolicited email asking for your personal information.
  2. Never provide personal information in response to an unexpected email, phone call, or text message.
  3. Do not share your account information, including passwords, PINs, etc. with anyone.
  4. Make sure to log out of Online Banking before leaving your computer unattended.
  5. Avoid logging into Online Banking when the Wi-Fi is public and open to everyone.
  6. Set-up alerts on your accounts to monitor activity.
  7. Use Bill Pay to reduce the number of checks you mail.
  8. Sign up for electronic bank statements to reduce the amount of account information in your mailbox.
  9. Ensure the contact information on your bank account is up-to-date, including your cell phone number and email address, so that we can easily reach you if potential fraud were to occur on your account.
  10. Regularly review your statement(s) or online banking account for unauthorized transactions and contact us immediately if you discover fraudulent activity.
  11. If your account information is needed for direct deposit, only provide it to verified businesses or individuals.
  12. It is important to monitor your credit report for unusual activity. To obtain a free annual credit report, visit: https://www.annualcreditreport.com/index.action

By following these simple tips, you can help to protect your bank accounts and keep your financial information safe from cyber threats.

General Cyber Security Tips

It is not just your bank accounts that you have to keep protected online. It is becoming increasingly more important to keep yourself and your personal information safe online in general. Here are some general cyber security tips to help protect yourself:

  1. Password protect your devices to secure against unauthorized access.
  2. Ensure that your devices, including operating systems, browsers, and software, stay up to date.
  3. Install a trusted antivirus solution on computers and mobile devices.
  4. Use caution when opening emails, downloading attachments, or clicking on links. Malicious software, capable of stealing information or damaging your devices, may be in attachments or links.
  5. Be cautious when answering questions in social media surveys as these may be designed to gather enough information to guess your passwords or to steal your identity.
  6. If you receive a suspicious email, social media message, or text message from someone you know, call them and ask if they sent the message before interacting with it. Their email, social media account, or device may have been compromised, and the message you received may be from a fraudster hoping to steal your personal information.

In conclusion, cyber security is important to keep ourselves and our information safe in the digital world. By being vigilant and proactive, you can ensure that your online presence remains secure and protected.

FDIC Insurance Explained

Couple meeting with a banker explaining FDIC Insurance.

FDIC Insurance Explained

In this article we’ll cover:

  1. What is FDIC Insurance?
  2. Other financial products. Are they covered?
  3. How does FDIC Insurance protect bank customers?

What is FDIC Insurance?

You’ve probably seen the signs that say: “Each depositor insured to at least $250,000.” Have you ever thought about what that sign really means?

The Federal Deposit Insurance Corporation (FDIC) was formed to protect the money deposited into accounts at banks covered by FDIC insurance. That means your money is protected up to $250,000 per depositor, per insured bank, for each account category.

FDIC coverage separates insured accounts into different categories, such as single accounts, joint accounts, certain retirement accounts and others. These categories cover checking and savings accounts, money market deposit accounts and certificates of deposit. As an FDIC Member, the coverage is automatic – so you don’t need to apply.

“Cornerstone Bank has a long history of offering financial services in the Dakotas. During that time there have been numerous financial crises including most recently the Great Recession in 2008 and economic uncertainty during the Covid-19 pandemic,” said Gary Petersen, Chairman. “Cornerstone Bank has shown resiliency because of strong leadership and adhering to conservative banking principles. As an FDIC insured bank, we fully subscribe to the regulatory framework that has kept the banking industry, particularly community banks, safe and sound for decades.”

What about other financial products?

Even if they are invested through the bank, other financial products like stocks, bonds, mutual funds and securities are not covered .

Talk with one of our bankers to explore ways to set up your accounts for maximum FDIC coverage. We’re here to help keep your money secure and protected.

How does FDIC Insurance protect bank customers?

  • The FDIC insures up to $250,000 in eight separate account categories per depositor per bank.
  • In the 88-year history of the FDIC, no one has ever lost a penny of an insured deposit.
  • The banking industry completely funds the FDIC, not taxpayer dollars.
  • The banking industry knows that a strong FDIC and deposit insurance fund are essential to the banking system. Banks stand ready to do whatever it takes to ensure the health of the fund and strength of the FDIC.

To learn more check out this video from the FDIC. Have more questions or want to calculate your FDIC coverage? Click here. 

Should I Use A Debit Card or A Credit Card?

Debit cards vs. Credit Cards. Young woman online shopping

Should I use a Debit Card or a Credit Card?

Most of us carry at least two pieces of plastic to pay for things – a debit card and a credit card. But what’s the difference between the two?

In this article we talk about:

  1. What is the difference between a credit and debit card
  2. Which one is better?
    1. Debit cards
    2. Credit cards
  3. Which one you should use.

So what’s the difference?

To begin with, think of it this way: With a credit card, you’re borrowing someone else’s money to make a purchase, but you’ll have to pay it back. With a debit card you’re pulling money directly from your own bank account. It’s the difference between taking out a short-term loan or spending only what you have.

So which one is better?

Let’s just say, ‘it depends.’

Debit Cards

Using a debit card is like writing a check. You’re spending money from your account for goods or services. If you don’t have enough money in your account, the debit will be turned down. If you do, money is deducted from your account almost in real time. Debit cards can also be used at ATMs or to get cash back at places like grocery stores. These cards can be great to help keep you from spending more money than you actually have and they can be great for in-store purchases.

Learn more about your Cornerstone Bank debit card and it’s features by visiting the Debit Card Page.

Debit Card Tip: Carrying a debit card is safer than carrying cash. If you need cash you can always use your debit card at an ATM to make a withdrawal.

Credit Cards

Credit cards can be perfect for large purchases because you’re borrowing someone else’s money for a short period of time. They also come with some liability protections and benefits that most debit cards don’t have. These benefits might range from cash back, to points for airline miles or lodging. Benefits can also include extended warranties or rental car insurance. Because of these protections, using a credit card for rentals or online purchases can be safer than using a debit card.

While both card types offer ways to dispute a purchase, your credit card issuer is trying to get its money back from a merchant. With a debit card dispute the money that came from your account is gone and unavailable for use until the dispute is resolved.

That doesn’t mean credit cards don’t come with drawbacks. If you have trouble controlling your spending or paying your account bill on time, it can be costly. That’s because interest is charged on bills that aren’t paid in full by the end of each billing period. You could also face a late fee. The longer you take to pay off the bill, the more you’ll pay in interest charges.

It’s also quite possible that credit cards that offer rewards will charge you an annual fee, whereas debit cards often come free with an account at your financial institution.

Learn more about our Cornerstone Bank Credit Cards and find the right fit for you by visiting our Credit Cards Page. Or to apply click here. 

Credit Card Tip: When used responsibly, credit cards are a great tool to help you build your credit score.

So which one should you use?

While credit cards generally come with more protections, you’ll want to make sure you pay them off as fast a possible to avoid paying interest charges. Responsible use of a credit card can also help build your credit score.

Debit cards, on the other hand, can be great for in-store purchases and are good for people who want to limit spending to only what is in their account.

Either way, experts recommend that you always monitor your accounts online and to report any discrepancies immediately. You should report a lost or stolen card immediately.

No matter what card you use, be sure to take the time to read about your protections and rights as a cardholder.

To find the right product and learn more about the different types of cards visit with one of our bankers today! 

Paying Debts and Learning to Save

Couple paying off debt and learning to save.

Paying Debits and Learning to Save Money

‘Don’t worry, be happy’ is great advice, but it isn’t easy to follow when it comes to experiencing financial issues. Many of us worry about money – how much we owe, why we can’t save enough – and that doesn’t make us happy. High on the list of financial concerns for many people are bills that need to be paid – especially credit card debt, loans and health-care costs. By paying debts and learning how to save many people can find relief from financial stress.

In this article we will cover:

  1. Paying Debts
  2. Learning to Save Money

Paying Debts

The more money you owe the deeper the hole feels, and interest costs can add up quickly if you are only making minimum payments. To make it worse, missing payments can hurt your credit rating, making it more difficult to get a loan in the future.

Morgan says the key is to pay off those bills as soon as you can. She also suggests making more than the minimum payments whenever possible and paying off loans or credit card balances with the highest interest rates first.

By only making the minimum payment each month, you will end up paying more in interest charges over time. And the higher the interest rate is, the more it will inevitably cost you.

Evaluate your debt payoff strategy with this calculator.  (NOTE: This is only an estimate. Actual payoff amounts and timelines can vary.)

Learning to Save

The wise move here is to work on paying off your debts first, then start saving. Building an emergency fund is important because that money can be used instead of having to borrow money for unexpected expenses such as replacing a broken refrigerator or medical expenses. When it comes to your health, Morgan also recommends having health insurance to help offset the high costs of care.

Take the time to figure out how to balance your income and your expenses. As well as prioritizing your needs and wants. Many people find it’s easier to automate monthly fixed expenses and savings deposits. That’s because you can set up automatic payments at your financial institution to pay those expenses. After that if you have leftover money, you can automatically direct it into savings accounts. Be sure to also take advantage of employer matches for retirement funds; it’s essentially free money and can make a big difference over time.

Then, once you find the balance between paying debts and saving for the future, you’ll worry less and smile more.

Visit with one of our expert bankers today!

Common Financial Mistakes

man frustrated with his finances.

Are you making some common financial mistakes?

What you do with your money can get you into a financial mess, but it can also get you out.

Face it, we buy things – and that can mean trouble if we spend too much and don’t leave enough to save or pay bills each month.

In this article we will cover:

  1. How your spending can make a difference
  2. The secret to avoiding common financial mistakes

Your spending makes a difference.

Taking out a loan for a new SUV or a bigger house can mean bigger payments and higher interest costs each month.

Think about it: The difference between a top-model vehicle and the entry-price model can cost you hundreds of dollars more in payments each month. The same goes for the amount of interest you’ll pay over the life of the loan. That’s money you could be using to pay off credit card debt or add to your savings.

Even the seemingly ‘little things’ can add up. Expenses like a gym membership, a new smartphone, or dinner out on a regular basis can add up.

Expert Tip: Cutting your spending by only $50 a week will save you $2,600 year – enough to pay down loans or even sink into an emergency savings account to help you cover unexpected expenses down the road.

What’s The Secret to Avoiding Common Financial Mistakes?

The key to staying ahead of spending problems, follow a budget. Knowing how much you owe and what your income is will give you a good picture of your monthly finances.

Expert Tip: Assess your needs and cut back wherever possible.

The concept is simple, spend less than you make. Then with the extra money, you can come up with a plan to put the rest into savings or invest for the future.

It can feel overwhelming. Maybe you aren’t sure where to start. Getting help from a financial professional is a great place to start. They will be able to take a fresh look at things for you.

Beware and don’t let your savings or having a little extra money in your checking account at the end of the month tempt you.

Expert tip: Set up an automatic transfer from every paycheck to go into a savings or separate account. If it’s automatic you won’t see it! Start small with $5 and grow from there.

Ready to get started on the right path with your finances? Meet with a banker today!

Home Equity Line of Credit

A home equity line of credit (HELOC) has many benefits for you and all of your financial needs.

In this article we will cover:

  1. What is a HELOC
  2. How does a HELOC work?

What is a Home Equity Line of Credit (HELOC)?

A HELOC, is based off the value of your home and is a second mortgage that gives you access to cash to help you pay for things such as home improvement projects, unexpected expenses, or that dream vacation, just to name a few. You can draw from this line of credit and repay all or some of it monthly. It works similar to a credit card but is secured by a mortgage on your home.

Calculate your loan payment amount. (NOTE: this is only an estimate. Actual loan payment amount and rates can vary)

How does a Home Equity Line of Credit Work?

This type of loan allows you to borrow against your home’s equity, pay it back, and repeat. Most HELOCs have a variable interest rate. This means that as the baseline interest rates go up or down, the interest rate on your HELOC will go up or down. Your banker will set your starting interest rate by using an interest rate index. Then add a markup depending on your credit score and loan-to-value ratio. Generally the higher your credit score, the lower the markup. Before signing off on the HELOC, you should review all the documents and the margin with your banker to make sure you fully understand the terms.

Contact a banker today to get started!