Welcome to Your No.1 Community Bank's Blog

August 16, 2018

Earn Higher Returns on Your Savings with Premium Money Market Accounts

Premium Money Market Accounts

Premium money market accounts are deposit accounts offered by banks and other financial institutions to customers with significant minimum balances who want the highest interest rate available from a savings account. For prospering customers who want to avoid potentially risky stock or bond investments, yet still seek returns on savings and federal deposit insurance that cash holdings cannot match, a premium money market account may be a good choice.

Premium money market accounts are a type of money market account. The main difference in that they generate higher interest rates than ordinary money market accounts, interest rates that are generally markedly higher than traditional savings accounts.

Because interest is paid every cycle, these accounts feature the full power of compounding – an excellent way for customers to put their money work for them over the long-term.  

Higher minimum balances are required for premium money market accounts. There are also limits on the number of transactions during each billing cycle, including withdrawals.  

These accounts are best for customers who want available liquidity on their savings, yet do not need to make regular withdrawals and can leave the principal and interest largely undisturbed.

[Premium and ordinary money market accounts (both forms of bank savings accounts) should not be confused with money market funds, which are investments in short-term debt securities.]

Virginia National Bank (VNB) offers premium money market accounts that can meet our customers’ needs. We invite you to contact our experts today to learn more about VNB's account options.

The primary advantage is a higher interest rate, but there are other benefits too:

Secure Returns: The interest rate is not only high, but clearly defined and paid every cycle. This makes premium money market accounts more reliable than many stock market investments.

Safety: Like all bank savings products, premium money market accounts are insured by the U.S. Federal Deposit Insurance Corporation (FDIC). Within FDIC limits, your money is safe.

Ready Access: These accounts can be accessed several times each statement cycle without limits on withdrawals, providing liquidity as ready cash to cover unexpected expenses.

Easy Check-Writing: A certain number of checks can be written from these accounts in each statement cycle, so there is no need to transfer money from savings to checking.

Returns on savings are guaranteed and can grow as the interest compounds.

For customers who have accumulated substantial savings, premium money market accounts can potentially provide more effective ways of saving to meet longer-term goals. These include:

Life’s Big Purchases: Maybe it’s for new cars, dream vacations, school expenses or weddings, but the higher interest rates of premium money market accounts can potentially help you reach major life goals more quickly. These accounts can also be combined within other accounts to save for the real big-ticket items, such as primary or vacation homes and college tuition costs.

Rainy Day Funds: That premium money market funds have withdrawal restrictions can keep customers from depleting their accounts to satisfy life’s immediate desires. This can keep these funds securely tucked away for emergencies, when customers need that money most.

Premium money market accounts from VNB offer attractive interest rates, secure returns, safety and flexibility. We hope you will contact our experts to open one of these accounts today.

VNB PREMIUM MONEY MARKET ACCOUNT: DETAILS

•    Minimum opening deposit of $1,000
•    6 withdrawals allowed per statement cycle period
•    $15 per withdrawal after 6 withdrawals
•    $100,000 minimum balance to avoid monthly maintenance fee of $12
•    Interest paid monthly
•    Tiered premium interest rates: (Rates effective February 1, 2018, subject to change)
      Under $100,000 – same interest rates as Money Market Account
      $100,000 to $499,999.99 .75% APY*
      $500,000 to $999,999.99 1.00% APY*
      $1,000,000 to $4,999,999.99 1.11% APY*
      $5,000,000 and over 1.26% APY*
*    Annual Percentage Yield (APY)
•    Monthly statements
•    No transaction fee for the use of Virginia National Bank ATMs

July 23, 2018

A business loan or a line of credit – what’s the best way to fund your company’s growth?

Why VNB?

Over the past few years, VNB has provided more than $1 billion in financing to local businesses. As a community bank, we want to be a trusted partner in helping our neighbors stimulate revenues and hiring, meet their cash flow needs and grow the local economy. We want you to believe VNB has stakes in your success and the prosperity of your community – because we do.

What separates a local bank like VNB from other business lenders? We make our decisions based on relationships and real people, not just an application form e-mailed into the ether. Our mission is to provide great personal service, access to local decision makers, fast response and continuity.

We take pride in offering higher levels of service and attention than large national banks. Our communications and processes are often richer, more informed and one-on-one. We strive to meet your banking needs with the greatest possible satisfaction. We want to grow with you.

VNB can provide many financing options, each tailored to meet individual business needs. We invite you to contact our experts today to learn more about VNB’s business funding options.

The Two Main Options – Loans and Lines of Credit

Two of the best sources of additional capital for small businesses are loans and lines of credit. Each has features and benefits that rising enterprises at all stages of growth may find appealing. Knowing the differences can help address short-term needs and empower long-term strategies.

Business Loans

The advantage of a business loan is the ability to invest immediately in assets that can fuel future growth. Business loans are generally taken on a one-time basis to purchase specific major assets that will continue to provide value to a business over the long term: capital equipment, vehicles, computer hardware and software, real estate, leasehold improvements and other big-ticket uses.

The term of a business loan is fixed (ordinarily 2 to 6 years but as long as 20 years), providing a specified amortization period. Banks prefer loans to be collateralized, but many offer unsecured options. Obtaining loans can become easier as a business matures, since most banks want to see – and will reward – a solid record of success.

Whether all the money borrowed is put to work immediately or not, monthly payments are fixed and equal, which is good for budgeting. Payments begin quickly, within a month, and are usually higher than lines of credit. A loan’s appeal can be interest-rate dependent since interest rates are often higher and normally fixed. Closing costs are higher, usually in the 2-7 percent range.

Business Line of Credit

A business line of credit can most easily be understood as a cross between a loan and a credit card. Like a loan, it provides you access to actual cash in your bank account, that you can use to pay for business expenses. Where it differs from a loan – and more closely resembles a credit card – is that a) you do not receive all the money at once (unless you need to), b) you can make minimum payments that are based on how much of it you have currently utilized, and c) at any time you can pay it down entirely, at which time you would pay no interest and not have any more payments to make.

Business lines of credit are basically an agreement with your bank on the maximum amount of credit they will extend to you without requiring additional collateral or new assessments of creditworthiness. A line of credit can be secured or unsecured. To qualify for an unsecured line of credit, a business must demonstrate healthy cash flow.

Like credit cards, lines of credit are typically revolving. They carry specific credit limits and can be used multiple times, for multiple purposes, as business needs dictate. They are best used to create flexibility for short-term operational financing needs, such as larger payrolls, unexpected or seasonal expenses, marketing initiatives, expansion costs or temporary cash flow challenges.

A line of credit can serve as an operational insurance policy, enabling growing businesses to draw from a cushion of cash when financing challenges arise. The debt is paid back as bills or receivables are paid and money flows back into the business. Payments are required only as money is borrowed, so a zero balance means no payments. It is important to keep payments as low as possible in relation to the balance, so available cash flow can remain strong.

In terms of process, closing costs for lines of credit are minimal, but they may carry fees for processing and credit checks as well as for each borrowing transaction. Interest rates can be lower, but frequently variable: many are adjusted periodically to meet the prime lending rate or another major benchmark. The interest rate offered may improve with solid credit management, but missing payments on a line of credit can result in significant increases in the interest rate.

Using lines of credit for long-term investments can unwisely tie up funds that could be needed in emergencies, limiting the flexibility to respond in more difficult times.

Whichever option proves most attractive, we hope you will contact VNB today. As a local bank with deep roots in the community, we stand ready to help our neighbors grow their businesses. Learn more about your loan and credit options here.

June 21, 2018

Advisory Board for VNB

Posted in Community News

Virginia National Bank assembled an exceptional network of Charlottesville’s future business leaders to create a new Advisory Board in 2017. The members of this team supported the Board of Directors and the bank’s interests while gaining valuable training and strategic relationships.

After a great success last year, a new group of members have been recruited to join the Advisory Board for 2018. We are looking forward to learning from different perspectives to strengthen VNB's future strategies.

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