The Benefits of Community Banking With SouthStar Bank

When choosing where to bank, consumers have more options than ever, ranging from large national chains to digital-only institutions. But for those who want personalized service, local decision-making, and a financial partner invested in their success, community banking is the clear choice! At SouthStar Bank, we have proudly served Texas communities for more than a century, blending modern financial tools with the warmth of traditional, hometown service.

What Is Community Banking?

Community banking means putting people first. Unlike big banks focused on national markets, community banks in Texas like SouthStar Bank are locally owned, locally managed, and committed to reinvesting in the neighborhoods we serve. This approach not only benefits individual customers but also strengthens local businesses and the overall economy of the communities they serve.

Personalized Service and Trusted Relationships

At SouthStar Bank, customers aren’t just account numbers; they’re our neighbors. Our bankers take the time to understand your goals, whether that’s buying your first home, saving for retirement, or growing a small business. By offering customized financial solutions, we ensure you have the tools and support you need to succeed. This relationship-driven approach is one of the key advantages of using a community bank over big national banks.

Local Decision-Making for Faster Results

One of the most important benefits of using a local Texas bank is that decisions are made right here in the community. At SouthStar Bank, loan approvals and account services aren’t tied up in distant corporate offices. Instead, you’ll work directly with people who know the local market and can move quickly to help you. For small businesses, this flexibility is crucial. As an SBA Preferred Lender, SouthStar Bank provides streamlined access to funding, enabling Texas small businesses to thrive.

Supporting Texas Communities

When you choose SouthStar Bank, your money stays close to home. We proudly reinvest in the places we serve, funding local businesses, creating jobs, and supporting community events. Unlike large national institutions, community banks measure success not just by numbers but by the positive impact we make on our neighbors. By banking locally, you help build stronger communities across Texas.

Modern Technology with a Personal Touch

Community banking doesn’t mean outdated banking. SouthStar Bank combines modern financial tools with hometown service. With mobile check deposit, online banking, and secure digital access, you’ll enjoy the same conveniences as a big bank with the added benefit of having a trusted local banker just a call or visit away.

Why Bank with SouthStar Bank?

Choosing SouthStar Bank means choosing:

A Texas community bank with over 100 years of service
Personalized financial guidance tailored to your needs
Faster, local decision-making
SBA Preferred Lender advantages for small businesses
A strong commitment to supporting Texas communities

At the end of the day, banking isn’t just about managing money; it’s about relationships, trust, and community. Experience the personalized, local service you deserve by contacting your local branch today!

Welcome Rosie Weaver

Rosie Weaver, Assistant Vice President & Branch Manager | SouthStar Bank Steiner Ranch

Rosie Weaver has joined the SouthStar Bank Steiner Ranch branch as an Assistant Vice President and Branch Manager. Rosie brings over three decades of experience in the banking industry to the Steiner Ranch team and customers. She excels at building strong customer relationships and helping them achieve their financial goals. Rosie is excited to bring her passion for community banking and personalized service to the SouthStar Bank family. Above all, Rosie values the community banking environment – where every customer can feel seen, heard, and appreciated. Her mission is to deliver exceptional service that keeps customers coming back.

Outside the office, Rosie enjoys spending time with her children, whom she describes as the light of her life! She is also very active in her church, serving as a Greeter at Celebration Church on Sundays and enjoying fun outings and fellowship with her Celebration Sisters Small Group. When she finds time to herself, her favorite thing to do is curl up on the couch with her dog and watch Law & Order SVU.

Welcome to the team, Rosie!

Self-Directed IRA (SDIRA) Rules You Need to Know

A Self-Directed IRA (SDIRA) can provide you with unique benefits to maximize your retirement. At SouthStar Bank, you can utilize your SDIRA to invest in options beyond stocks and bonds, including real estate, private equity, tax liens, and private loans. While there are numerous benefits to using an SDIRA, the IRS enforces strict regulations to protect your retirement savings and maintain your account’s tax advantages.

In this guide, we’ll cover the most important Self-Directed IRA rules you need to know to avoid penalties and maximize your retirement benefits.

What Is a Self-Directed IRA?

A Self-Directed IRA is an individual retirement account that allows investors to diversify their portfolios with alternative assets. Unlike traditional IRAs, which limit investments to stocks, bonds, and mutual funds, SDIRAs offer a broader range of investment options, including real estate, precious metals, private loans, and other alternatives.

Top Self-Directed IRA Rules You Must Follow

1. Account Holders Must use an IRS-approved Custodian or Trustee

Every Self-Directed IRA must be held by a qualified IRA custodian or trustee. SouthStar Bank offers custodial services to customers for their SDIRAs that have Checkbook Control-style accounts¹. This structure allows you to invest in alternative assets beyond conventional options and provides easier access to your funds compared to traditional IRAs.

2. Account Holders Must Avoid Prohibited Transactions and Disqualified Persons

The IRS prohibits certain transactions, known as prohibited transactions, involving disqualified individuals. Disqualified individuals include the IRA owner, spouse, ancestors, descendants, and controlled entities. Examples of prohibited transactions are:

Buying property from yourself or a family member
Using IRA-owned property for personal use
Lending money to yourself or related parties

Violating these rules can trigger taxes and penalties, disqualifying your IRA’s tax benefits.

3. No Self-Dealing

Self-dealing occurs when you personally benefit from your SDIRA investments outside the account. For example, living in or using real estate owned by your IRA is strictly forbidden. All income and expenses must flow through the IRA to preserve its tax-advantaged status.

4. Know What You Can and Cannot Invest In

While SDIRAs allow many alternative investments, certain assets are banned by the IRS, including:

Collectibles like art, antiques, and most coins (except specific precious metals)
Life insurance policies

Always verify investment eligibility with your custodian before proceeding.

5. Required Minimum Distributions (RMDs) Apply

If you have a traditional SDIRA, you must start taking required minimum distributions (RMDs) by age 73 (as of 2023). It’s important to note that Roth SDIRAs do not require RMDs during the owner’s lifetime.

6. Be Aware of UBTI and UDFI Tax Rules

Investments generating Unrelated Business Taxable Income (UBTI) or Unrelated Debt-Financed Income (UDFI) can incur additional taxes. For example, using leverage (non-recourse loans) to buy real estate or investing in an active business may trigger these taxes, which reduce your overall returns.

In Conclusion

Understanding the rules of a Self-Directed IRA is crucial to legally maximizing your retirement account’s growth and avoiding costly penalties. From working with an experienced custodian to steering clear of prohibited transactions, knowledge is your best defense.

Ready to diversify your retirement portfolio with alternative assets? Contact your SouthStar Bank IRA experts at ira@southstarbank.com or 512.384.3948, and they’ll be happy to answer any questions!

¹SouthStar Bank S.S.B. is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not insured, have no guarantee, and may lose value. SouthStar Bank S.S.B. customers have FDIC bank deposit insurance for non-invested cash deposited into their Custodian Checkbook IRA account up to the standard insurance amount of $250,000 per depositor, per insured bank, for each account ownership category. The Bank follows the FDIC Insurance guidelines for custodians as outlined HERE.

5 Benefits of Saving Early for Your Child’s Future with a Youth Savings Account

youth savings accounts, benefits of a youth savings account, benefits of saving early

When it comes to securing your child’s financial future, opening a youth savings account early can make a significant difference. Whether you want to help your child build wealth, teach money management, or set them up for long-term financial independence, saving money for your child from an early age offers numerous advantages. Read on to explore the key benefits of contributing early to your child’s savings and why opening a dedicated children’s savings account is a smart financial move for any parent.

1. Harness the Power of Compound Interest in a Savings Account

One of the most significant advantages of starting a child savings account early is the power of compound interest. Compound interest allows your savings to grow significantly over time as you earn interest on both your initial deposit and the accumulated interest. Even small, consistent deposits in a youth savings account can add up significantly by the time your child is headed off to college or heading into adulthood.

2. Set Your Child Up for Long-Term Financial Independence

Opening a youth savings account can help your child build a strong financial foundation. The money saved can serve as a launching pad for important life goals, such as buying a first car, moving out, or starting a business. By establishing a healthy savings balance early, your child gains greater financial freedom and independence in the future.

3. Reduce Financial Stress by Saving Consistently

Saving early through a child savings account helps spread out contributions over time, making it easier to build a substantial nest egg for your child’s future without pressure to make large deposits. Automating deposits into the savings account ensures consistent growth and encourages disciplined saving habits without financial strain.

4. Teach Your Child About Money Management Through a Youth Savings Account

Opening a youth savings account can be an excellent tool to teach your child financial responsibility. Involving your child in monitoring their savings account balance or setting savings goals encourages good money habits from an early age. Kids who learn about saving and budgeting through their own accounts tend to develop lifelong financial skills and respect for money.

5. Encourage a Positive Relationship with Money Early On

Early exposure to managing their own savings account can help your child develop a positive attitude toward money, saving, and investing. This early experience fosters confidence and prepares them for more complex financial decisions later in life. Financial knowledge is crucial for long-term success and viability. Establishing strong principles early can be essential to your child’s development.

How to Get Started with a Youth Savings Account

Get started today at your local SouthStar Bank branch with our Shooting Star Savings account featuring no minimum balance requirement and no monthly service charges! While setting up the account, ask the team about automating monthly contributions to make saving effortless and encourage your child to take part in the process. Even small amounts grow over time, so the key to reaping the full benefits of a youth savings account is consistent saving.

7 Smart Tips for Saving for a Down Payment on Your First Home

Saving for a down payment is often the biggest hurdle for first-time homebuyers. Whether you’re planning to save the standard 20% down payment or planning to use a first-time homebuyer program, a clear strategy and consistent habits are essential. Below are seven smart, actionable tips to help you save—plus how SouthStar Bank can support you on your journey to homeownership.

1. Set a Realistic Down Payment Goal

Before you begin saving, it is essential to determine how much you’ll need. While a 20% down payment is standard for conventional loans, many first-time homebuyer programs require as little as 3% to 5%. SouthStar Bank’s H.O.P.E Home Loan¹ program goes beyond traditional first-time homebuyer programs to offer even more support to help you get into your first home.

If you are interested in learning what kind of down payment you may need, SouthStar Bank’s local lending experts are available to discuss your options and determine your down payment goal.

2. Open a Separate Down Payment Savings Account

Creating a dedicated savings account to keep your down payment funds separate from everyday spending can be a great help in accomplishing your final goal. Using an account for regular transactions can make saving more challenging to track and control. A dedicated account, on the other hand, allows you to monitor your progress closely and manage your spending more effectively.

3. Automate Your Savings

Setting up automatic transfers into your down payment account ensures consistency and removes the temptation to skip months. Even modest contributions—such as $100 per week—can add up quickly. Some employers also allow you to split direct deposits to multiple accounts. Setting up this feature can be a good tool for accomplishing your down payment savings goals.

4. Cut Back on Expenses

Lowering your daily expenses, whether it be skipping your morning latte or rethinking big trips, can offer a boost to your savings. Work to reduce discretionary spending by limiting takeout, pausing unused subscriptions, or shopping more intentionally. Funnel those extra funds directly into your down payment fund every month.

5. Increase Your Income with a Side Hustle

Consider freelance work, online selling, or part-time gigs. Any extra income can make a big difference when directed straight into your savings account. Currently, there are many credible side-hustles you can do online. Starting an online storefront or pursuing a profitable creative venture can be a great way to make some extra money without interfering with your current work schedule.

6. Use Windfalls to Boost Your Savings

Large windfalls of funds can significantly accelerate your down payment savings. Put tax refunds, work bonuses, or monetary gifts toward your down payment. These unexpected funds can make a significant dent in your savings goal if handled wisely.

7. Take Advantage of First-Time Homebuyer Assistance Programs

Purchasing your first home can feel like a major financial and mental endeavor. Thankfully, many first-time homebuyers qualify for grants, forgivable loans, or down payment assistance programs at the local, state, or federal level.

SouthStar Bank offers several mortgage options to customers looking to purchase their first homes, including the Star Advantage Program and the H.O.P.E. Home Loan Program, which have been designed to meet the unique homebuying needs of a first-time buyer!

Let SouthStar Bank Help You Get Home Faster

Saving for a down payment doesn’t have to feel overwhelming. With clear goals, steady habits, and a knowledgeable partner by your side, your dream of homeownership is within reach.

Ready to take the first step? Connect with your local SouthStar Bank experts to explore your financing options, review savings products, and make your dreams of homeownership a reality!

¹Minimum credit score of 620 required to qualify for H.O.P.E Home Loans. SouthStar Bank NMLS# 410624. All loans are subject to approval. Other fees and restrictions may apply.

Source: Investopedia

Welcome Clint Meyer

Clint Meyer, Senior Vice President of Lending | SouthStar Bank Leander

Clint Meyer has joined the SouthStar Bank Leander branch as a Senior Vice President of Lending. Clint received his undergraduate degree from Texas Tech University and pursued further education at St. Edward’s University, where he earned his Master of Business Administration degree. A specialist in commercial and CRE lending, Clint spent more than two decades in the Central Texas commercial and industrial construction industry.

In his role with SouthStar Bank, Clint looks forward to building lasting personal and community relationships as well as helping businesses within the local economy. Clint takes great pride in being a part of projects that physically shape communities. He finds it rewarding to analyze complex deals, structure financing based on each client’s unique needs, and serve as a trusted resource and partner for every deal, from concept to completion.

Outside of the office, Clint enjoys spending time with his family, working on his family ranch in South Texas, and fly fishing in the Rocky Mountains. Clint also spends time giving back to his community through Meals on Wheels.

Welcome to the team, Clint! NMLS #2740734