Should I Take Cash Out of the Banks?
Other People Are Reading
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Banks Keep Money Insured and Safe
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Your cash is much safer in the bank than in your possession if it is in a bank covered by the Federal Deposit Insurance Corporation (FDIC). According to the FDIC, money deposited in a checking, savings, Individual Retirement Account (IRA) or any other traditional bank account is insured for up to $250,000. Keeping money in the bank also minimizes the risk of having it stolen.
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Take Cash Out for Emergencies
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The Red Cross recommends that consumers take enough cash out of their bank to use in an emergency during which they may not have access to their home, bank or an ATM. According to the Red Cross, consumers should set aside enough money in cash, quarters and traveler's checks to last them for three days.
Bottom Line
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Although the government recommends that individuals keep their money deposited in FDIC-insured banks, it is a good idea to have a small amount of cash on hand for emergencies.
References
- Photo Credit a man using the cash/bank machine image by L. Shat from Fotolia.com
