It is in times of economic disturbance that you need to rely on helpful banking institutions and your savings the most. When the world is already fighting a pandemic, there is no room for worrying about whether your money is safe in the bank account or not.
What if you need to clear a paycheck? Maybe there is an important credit card payment coming up? Or worst, if any of your dear ones contact the virus, you will be needing cash to deal with medical expenses that come up.
Amidst such confusion, customers need an assurance that the savings they had stashed away in their accounts are safe and protected under all circumstances. It is the duty of the banks to confirm that they don’t need to consider withdrawing their money and that the institutions are protecting their deposits at all times.
There may be serious consequences if a bank fails to do that.
Economic Disturbance During the Pandemic and The Bank Run
The increasing burden on the economy has left many of us wondering if the banks could be as supportive as they had once promised.
In fact, a large number of customers now wish to take out their savings from the accounts under the impression that the bank may run out of money and they would eventually be left empty-handed. This situation is known as a bank run and could be quite lethal for the financial stability within a country.
Banks run means that users were not satisfied with the protection that the company offered and decided to withdraw all their cash. Consequently, taking out money from the bank account would leave its cash reserve completely exhausted.
Did You Know? Bank runs were one of the most serious problems faced during the Great Depression. Many customers lost their savings as the banking system completely collapsed.
It was after a couple of such mishaps took place that the Federal Deposit Insurance Corporation was set up to ensure that no customer loses their savings in the future. This encouraged users to rebuild their trust with banks with FDIC-insured institutes. Currently, almost all the leading companies in the US offer this insurance so you can consider that your savings are in safe hands.
Does That Mean You Don’t Need to Worry About the Safety of Your Money?
Whether you wish to withdraw your savings or not is completely up to you.
The truth is that, even with cases on a steep rise, FDIC has not received any complaints about bank failures or bank runs. This proves that bank accounts are still the safest place to save your cash. Who wants to take the risk of stacking large sums of money at home and losing it to burglars, unfortunately? Moreover, the savings in your account can help you earn handsome interest!
Whereas the cash in your account is FDIC-insured up to $250,000. This means you will be getting this amount back in case a bank failure is to occur.
Nonetheless, the final decision rests in your hands. If you need cash with you in this difficult time, then there is nothing stopping you from withdrawing some from your account. However, if you keep the rest safe in your bank then why take the risk of pulling it out?
Many banks have restricted their physical branches in order to control the spread of the virus but, luckily, you can utilize all their money management tools online and also make use of a widespread ATM network to withdraw cash whenever needed.
Lastly, if you still have concerns about the health of the banking system that is holding your money, check if their drive-throughs are available and get in touch with the customer support team through them. Typically, all such services and others, for example, bill payment, sending money, receiving funds, opening or closing accounts online, are operational just like they were in the good old days.
The future that the Covid-19 pandemic holds for us is still pretty unclear but there is no doubt that all the banks in the country are working, to the best of their abilities, to ensure you don’t face any financial issues in these challenging times. Your money is protected and all the money management features are running without any issues!