Tag: personal-finance

What happens if the bank where you keep your small biz checking is seized by the FDIC?

July 29, 2026

For the past decade, I’ve had a small biz checking account with an out-of-state, primarily on-line bank that specialized in banking services for entrepreneurs, gig workers and super small businesses. Yesterday’s mail contained an envelope with the logos of my bank + another bank on the outside. There’d been some major changes back in the spring, so I thought maybe this was the official notice that my bank had merged with another one.

My former financial institution merged with another one – but not by choice. The FDIC shut it down and sold the assets to another bank. The letter was quick to provide assurance that my money was safe. I could still access funds, use my debit card, make remote deposits, etc. The receiving bank would be in touch regarding account updates after the transition period. Curious, I visited the new bank’s website to view business accounts and services offered. Well-capitalized, yes, but not geared toward remote small business customers like me.

So, after Day 2 of Quilt Camp, I headed to my credit union to open a basic business (no monthly fee) checking account. I actually took the checkbook from my other account with me. At the advice of the credit union representative, I wrote a physical check for the exact remaining balance in the existing biz checking account and added $100 cash to make my opening deposit. Why? There’s an automatic 10 business day hold on any checks deposited within the first 30 days of a new account opening. The cash provides a bit of cushion until the electronic transfer from quilt camp fees posts- no holds there. Yes, it’s a bit annoying, but I can deal with it.

Now we wait. According to the letter and FDIC notice received in the mail, I have to officially close the account with the receiving bank once the balance reaches zero. Apparently they don’t just assume I want it closed.

Sadie waiting for our campers to arrive on Day 2.

Tax time as an early retiree

March 7, 2026

I finalized our federal and state tax returns today. I like to let them marinate for a few days and then review everything once more before filing. This year marked the most streamlined tax return prep I’ve had since retirement. Why? I stepped away from all 1099 gig work at the end of 2024 once my teacher pension began. No more multiple 1099s with expenses to track! The bonus? More time to spend on activities I enjoy.

We’re approaching our fourth year in retirement. The preceding three years of taxable income has been all over the map. Our 2024 and 2025 numbers are nearly identical, so I think we have a realistic baseline to estimate tax liabilities moving forward.

Keep in mind that local, state and federal governments tax income differently, according to type and amount of income. (Not many cities levy an income tax, but St. Louis does!) 2026 will mark the final year we’ll pay Georgia state income taxes on all income, plus full property taxes. Next year, limited income exemptions begin ($35,000) for income taxes and we’ll receive an exemption for the school tax portion of our property taxes. Eventually, up to $130,000 of income (married filing jointly) will be exempted from Georgia income tax. Georgia doesn’t tax Social Security income either.

Just for grins, I went back and compared this year’s numbers against those from our last full year of employment. Yes, our current income is less than it was when we were both working, but it’s the tax treatment of the types of income that makes the biggest difference. Just saying, we paid an obscene amount of taxes when we were employed full-time!

Financing your new sewing machine?

August 28, 2025

Sewing machine companies often run 0% financing promotions if you buy a new machine that’s above a certain price point (say $3000 & up). Purchases are made via a special credit card usually offered through Synchrony Bank.

Let’s look at Janome’s current Labor Day promotion.

To summarize:
0% interest for 36 months if you spend above $3,000.00 in a single transaction.
OR
5.99% interest for 72 months if you spend above $6,000.00 in a single transaction.

This offer is for charges made on the Sewing & More Credit Card issued by Synchrony Bank.

Before signing on the dotted line, be sure to read what consumer advocate Clark Howard refers to as the mice type.
The default interest rate on this credit card is 34.99% and the penalty interest rate is 39.99%. This is a HUGE difference from a 0% or 5.99% interest rate for a fixed period of time.

Let’s see what the numbers look like if I were to buy a Janome 9480 with ASR + tax + acrylic table insert to make the total transaction $6,000.00.

Loan TermLoan AmountInterest RateMonthly PaymentTotal Paid
36 months$6,000.00Zero/None$166.67$6,000.00
36 months $6,000.0034.99%/39.99%TBD$9,769.76 to $10,390.53
72 months$6,000.005.99%$99.41$7,157.45
72 months $6,000.0034.99%/39.99%TBD $14,416.72 to $15,896.96

The “gotcha” here is that if you fail to make timely payments or pay the full balance off at the end of the special interest term, the credit card company could apply the default interest rate retroactively back to the initial purchase date and/or invoke the penalty interest rate according to the card agreement rules. This means your purchase with higher interest rates applied could potentially cost you anywhere from 50% to 122% more than your original transaction amount. Ask yourself, “Can I make payments according to the schedule to avoid the high interest rates?”.

My personal take:
I’ve been saving up for a new sewing machine. When I’m ready to buy, the current plan is to time the purchase so that it posts to my travel rewards credit card right after the monthly statement drops. I pay my credit card in full every month, so the payment due date for this new charge would be almost two months away. I’ll earn rewards that I can later apply toward my credit card balance.

If my 8900 were to give up the ghost and I need a new machine before having the entire amount saved up, I would be totally fine with the 36 month special offer because: (1) the monthly payments fit my budget and (2) I have no concerns about paying the balance off by the deadline. If (1) and (2) weren’t true, I’d keep saving or consider alternative machines with large throat spaces that are within the amount I have saved.

Photo by Nataliya Vaitkevich on Pexels.com