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Should I withdraw money from bank during war?

The fact is banks are typically the safest place to store your cash, even in a down market, so there's no need to withdraw it for security reasons.

blog.oxygen.us - Is My Money Safe in a Bank During a Down Economy? - Oxygenate

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Links to external websites are not managed by Oxygen or The Bancorp Bank With the economy all over the place since the start of Covid you may ask yourself whether your money is safe in your bank account. Economic uncertainty is scary for anyone, but especially so for Freelancers and Small Businesses who have been hit particularly hard during this current global crisis.

With all of this uneasiness right now you might feel the need to stock up on cash, which begs the question: Is it a good idea to take my money out of my bank during times of uncertainty?

Should I Withdraw Cash From the Bank Right Now?

The fact is banks are typically the safest place to store your cash, even in a down market, so there’s no need to withdraw it for security reasons. With the Great Recession not too far in the rear view mirror, you may say “but I remember institutions failing, what if that happens again?” While rare, it does happen (dozens of banks went bankrupt during the Great Recession). You may even recall scenes of people lined up outside their bank demanding their money. Because banks keep only a percentage of deposits on hand at any time and lend the rest out in the form of credit, a process known as fractional reserve banking, if everyone demands their full deposits at the same time the bank will likely not be able to cover it. This is known as a bank run. You may recall a famous bank run scene in the movie It’s a Wonderful Life. Bank runs become self-fulfilling prophecies because no one wants to be the person left when the bank’s cash reserves are depleted. Historically, bank runs were a problem during the Great Depression, and many people lost their savings due to bank failures. Not long after, the Federal Deposit Insurance Corp. (FDIC) was formed to make sure no bank customer loses insured money due to bank runs or other institutional insolvency.

FDIC Insurance

The good news is your money is protected as long as your bank is federally insured (FDIC). The FDIC is an independent agency created by Congress in 1933 in response to the many bank failures during the Great Depression. The idea was, and is, to instill public confidence in the banking system by insuring consumers’ deposits. Today, that means all FDIC insured deposit accounts are protected to at least $250,000 per depositor across all of the protected account types. Since the creation of the FDIC, not one cent of insured deposits has been lost. Not all banks are insured by default, however, so it is important to ask the question to your bank or look directly on the FDIC bank finder here.

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Is My Oxygen Account FDIC Insured?

Yes. All Oxygen deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to at least $250,000 per depositor through The Bancorp Bank; Member FDIC. What’s more, Oxygen is PCI DSS certified, the highest security standard in banking focusing on cardholder data. At Oxygen, the security of your money and personal data are paramount.

What Is, and Isn’t, Covered?

FDIC Covers

Checking accounts

Negotiable Order of Withdrawal (NOW) accounts

Savings accounts

Money market deposit accounts (MMDA)

Time deposits such as certificates of deposit (CDs)

Cashier's checks, money orders, and other official items issued by a bank

FDIC Does Not Cover

Stock investments

Bond investments

Mutual funds

Life insurance policies

Annuities

Municipal securities

Safe deposit boxes or their contents

U.S. Treasury bills, bonds or notes*

*These investments are backed by the full faith and credit of the U.S. government.

If Something Does Happen, How Long Until I Get My Money?

When a federally insured bank fails, the FDIC will sell deposits and loans from the failed institution to a solvent one. If a sale is successful, customers’ accounts are simply transferred. When no sale can be made, customers from the failed institution will receive checks from the FDIC for the insured balances of their deposits, usually within a few days of a bank’s closing. So the answer to whether you should withdraw cash right now is pretty simple: not unless you need it for immediate use. Storing cash at home is also not advised as it is most likely not ensured in the case of fire or burglary. You can always access your cash easily should you need it from our fee free network of over 55,000 Allpoint ATMs around the country, easily located from within the app. Now you can breathe a little easier knowing your money is safe with Oxygen.

blog.oxygen.us - Is My Money Safe in a Bank During a Down Economy? - Oxygenate

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