January 2025

What Are Your Plans for 2025?

What does the new year have in store for you?

Will you be building up your savings or making a major purchase, like a car or a home? Paying down debt or repairing your credit history? Getting started in the workforce or planning for retirement? Saving for college, going to college, or simply continuing to do what you’ve been doing because it works?

Whatever your goals, plans and dreams, however big or small they are, REGIONAL is ready to work with you to make them come true. We’ve been helping people turn ideas into reality since 1961, and 2025 will be no different. REGIONAL is always looking for ways to make your banking experience even better, while retaining those core principles that make us who we are. We work for people, not for profit.

It's going to be an exciting year, and we look forward to serving you. Happy new year!

Members Raise Funds for Toys for Tots

This past November and December, your donations totaled $3,376.97 to help bring the joy of Christmas and send a message of hope to less fortunate children through the gift of a new toy. You demolished our original goal of $1,850. Thank you!

Monthly Financial Tips

How to Calculate Compound Interest

When you talk about savings accounts and loans, you hear about “compound interest” But what is it, and how is it calculated?

In the simplest of terms, it’s a way to calculate interest where the earnings on an investment or loan are added to the principal amount. This means that interest is calculated on both the initial principal and the interest that has accumulated from prior periods. In even simpler terms, you earn interest not only in your original investment, but also on the interest that has previously been added.

How is compound interest calculated? There is a formula, but you will likely need a calculator:

A = The amount of money after interest (principal + interest)

P = The principal amount

r = The annual interest rate (in decimal form, so 5% becomes 0.05)

n = The number of times the interest in compounded per year

t = The time the money is invested or borrowed for, in years

Let’s say you invest $1,000 at an interest rate of 5% annually, compounded annually for 3 years:

The order of operations for this equation goes like this:

1. Divide the rate (0.05) by the number of times the rate is compounded per year (1): 0.05
2.  Add 1 to the result: 1.05
3. Multiply the time, in years, the money is invested (3) by the number of times the rate is compounded per year (1): 3
4. Raise 1.05 to the power of 3 (or multiply 1.05 x 1.05 x 1.05): 1.157625
5. Multiply this result by 1000: $1,157.63

After 3 years, the total amount will be $1,157.63, which includes both the original principal and the interest earned.

There is an even easier way to calculate compound interest: visit https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator, fill in the amounts and let the site calculate it for you!