Hoarding cash? Banks, officials say keep it in your account

As the COVID-19 pandemic continues, panicked consumers are withdrawing thousands of dollars from ATMs. The amounts are so large that one Manhattan bank branch ran out of $100 bills and needed a delivery the next day to replenish supply.

An official from the Federal Deposit Insurance Corp., said the craze to stockpile cash at home due to the pandemic isn't smart – it's risky.

«Forget the mattress. Forget hoarding cash. Your money is the safest at the bank,» Jelena McWilliams, chairman of the Federal Deposit Insurance Corp told NPR's Morning Edition. «Just as it is not necessarily rational to hoard toilet paper, it is also not rational to hoard cash.»

Prior to the pandemic, more Americans were increasingly relying on digital payments for goods, services and even person-to-person payments. Now, according to financial experts, consumers are better off with money in the bank so they can pay mortgage and credit card bills online. Cash in the bank also eliminates concern the money could be lost or stolen.

McWilliams want the public to remember that the nation's banks are in strong financial shape, and should a bank ever fail, deposits of $250,000 are insured by FICA.

Source: ATM Marketplace