Should I Withdraw My Money From Banks?

Banking Keeps Your Money Safe

Keeping your money in a bank is safer than keeping large amounts of cash, which can be lost, stolen or damaged. Having a bank account helps you develop good credit. In addition, all legitimate banks should be FDIC-insured. As of of August 2010, FDIC insurance covers up to $250,000 in coverage for all accounts under the same name at the same bank. This means that if the bank goes under you can still recover all or most of your money.

Banks Take Money Out of Your Control

If you keep your money in a bank account, you risk having your account frozen or levied for reasons outside your control. You may also have to pay fees or penalties for using the account. Finally, if the bank is not properly insured you may lose your money if it goes under.

Bottom Line

If you're charged fines that exceed the benefits of having a bank account, have trouble with frozen accounts, or find your bank isn't FDIC insured, you should withdraw your money. (You can check if your bank is FDIC-insured using the FDIC Bank Find tool.) Just make sure you keep your cash in a very safe place.

References

• Tomorrow's Money: Advantages of Using a Bank
• Master Your Card: 6 Reasons Why Keeping Money In The Bank Isn't As Safe As It Used To Be
• FDIC: Your Insured Deposits

Resources

• FDIC: Bank Find