The interview

Initially when given the assignment to interview someone, I planned

to take a trip to meet somebody in my field.

Before I was able to follow through with that idea, I found just what

I needed where I least expected it.

While discussing my insurance with a State Farm agent, it was brought

to my attention that in addition to insurance, they also provided

services for those with financial needs. Who would have thought? I

began inquiring, but realizing that her time was valuable, I wanted to

be considerate and I requested to arrange a time to discuss just these

things in more detail. She acceded and scheduled an appointment for me

the very next day.

When I arrived, I was warmly greeted and offered something to drink.

Once situated, I knew that I needed to use the next hour very wisely

as I had so many questions.

J: Tell me a little about yourself and what started you in the banking field?

SF: I started here as an insurance agent, but almost immediately I

became bank certified. After seeing how much the additional products

and services could benefit my customers, I jumped right in.

J: So exactly what kinds of products are you referring to?

SF: Beginning with multiple different credit cards, we also service

checking and savings accounts. Those are some of the more common

products anyways. I am also able to conduct loans for vehicles either

off the lot or a private party sale, refinances, and even personally

secured loans using a vehicle as collateral.

J: What kind of rates do you have and what does it take to get approved?

SF: Starting with the credit cards, anywhere between 11.24-20.24%. Our

Interest Checking accounts earn different amounts weighing in on the

amount in the account at any one given time. The possibility of earned

interest is up to 74%. With the savings account, again it depends on

your average balance, but the range is 12-81%. For an auto loan,

depending on the type of vehicle, year, amount financed, and term in

which the loan would be paid off. Starting at 3.49% and up, there are

various other facts that could determine your rate. Whats even better

though, is that we don't charge any application or origination fees.

J: Interesting. What else?

SF: Well, if you are into investing, we offer things such as CD's and IRA's.

J: What exactly is a CD?

SF: A CD is another form of investment vehicle. Money in different

increments is placed with the company where it earns interest for a

specified term. You choose the term that you are most comfortable

with. This can be as short as 3 months and as long as 60. Again,

depending on how long you leave the money with the company is how much

interest you will earn. It goes as high as 2.35%. I must say though,

if your looking for a larger return, planning a retirement for

example, I would recommend an IRA.

J: What is an IRA?

SF: An Individual Retirement Account. There are two different types-

traditional and Roth. Depending on if you prefer to pay your taxes on

the money when you place it in the account, or when you go to draw

from it is how you decide which one is right for you.

J: Why not just put money into a savings account?

SF: State Farm has partnered with some very well known and very

successful investment firms such as Blackrock who invest your money in

different stocks and bonds. This gives you a better return which is

typically much higher than what a savings account could offer.

J: But isn't investing in stocks dangerous? Couldn't you lose money?

SF: It's possible. The market rises and falls quite frequently,

however we take the trust you have given us very seriously. We are a

very conservative company, never making a move that is too risky no

matter what the gain might be. If your not comfortable with investing

this way, believe it or not, a whole life insurance policy might be in

your best interest.

J: Life insurance? What good would that do me if I'm dead?

SF: Good question. A whole life insurance policy not only provides a

death benefit, but it also incurs interest. There is a guaranteed

interest rate, but sometimes you can earn up to 6% interest which is

much more than that of a traditional savings account. You can borrow

against the cash value or interest of the policy as you choose. There

is also the possibility of receiving a dividend.

J: Can you explain to me what a dividend is?

SF: Of course! The rate you pay on your policy is calculated based on

the amount the company needs to conduct business servicing the policy

as well as paying out its claims. Sometimes the amount needed is over

estimated, or there are less claims, thus the money is given back to

the policy holder. This money can either be accepted as cash, or

applied to the cash value of your policy.

J: Thank you for your time and information. I really learned a lot!

Concluding the interview I felt like I had an abundance of

information. Useful information at that. I had no idea there were so

many options when it comes to investments and banking. I guess there's

an option out there for just about anybody depending on how much they

are willing to risk. A simple appointment with your banker and the

right questions is more beneficial than I ever thought possible.