-Bert Hines, First National Bank

also means a higher rate of interest earned on a savings account.

“People want to earn as much interest as they can, and pay as little as they can,” Hines said, “but those rates are tied together.” At most banks, savings interest is compounded daily, and posted to the account quarterly.

In her 40 years of experience in banking, Smith told that, while she has seen higher rates than the current ones, she has not seen the current volatility, the speed at which rates have changed. “I’ve never seen this,” she said.

As previously stated, however, Federal Reserve rates are not the only factor affecting people’s ability to save. The economy does as well, especially the ever-growing cost of living, limiting the amount of available money to save. “The cost of everything is so high,” Hines said, “so it makes it harder for folks to save, because goods have interest… But that goes back to the philosophy of savings, where you have to be diligent in putting money back for these types of events.” He summarized this savings philosophy in a single phrase: “Don’t save what is left after spending, but spend what’s left after saving.”

Smith also stressed the importance of savings accounts; “It is recommended to have three to six months of savings in an account for emergencies. In this higher rate environment, it is the opportune time to put money in a savings account, even if you start small. ” She continued, “There really is no amount too small. You can open up a savings account with as little as $100, and you can open up an account for your children for far less than that, and it will grow.”

While discussing the Federal Reserve, both Hines and Smith emphasized how little control or predictability there is with their rate decisions. Rumors and speculation as to what decisions they will make are ultimately just that, unsubstantiated rumors. “They meet regularly to discuss rates, and what they do, we don’t know,” Hines said, “We really don’t know what they’re gonna do. We have an idea, but my idea could be different from the person down the street’s idea, or the person in another town’s idea.”

For those looking to open up a savings account, Smith had some final bits of wisdom, emphasizing that every penny helps. “There’s no amount too small. I mean you can open up a savings account with as little as $100. Your children can open an account for far less than that. That will grow… it will grow, and with the interest rates being much higher than they’ve been in the last few years, that money is gonna grow.”

“Regardless of the amount of money,” Hines added, “It’s about creating the habit. It’s about doing it, because if you don’t start doing it, it’s very easy to say, ‘I’ll do that next time.’”

As for those considering taking out a loan, they encouraged building a relationship with your local bank. In this economic situation, taking on debt is a serious matter. “Know your banker. Talk to your local community bank, and speak to somebody that you know and trust,” Smith said. “Because the truth is, when you take out a loan with these rates, you’ve got to be capable of paying that back.”

“It’s not about the transaction, it’s about the relationship,” Hines added, “and in any relationship, you have to have conversations. ‘Is it a good time, not a good time?’”… That’s the advantage with having a local community banker, that you can come in and sit down and talk with them.”

There are multiple community banks around town, both for newcomers looking to set up a new bank account, those looking to move their money, and those thinking forward with loans and savings.