Big Withdrawals Have Some Bank Branches Running Low on Cash
March 18, 2020
Regulators have come forward to warn Americans that they are putting their money at risk by withdrawing from the bank. The move comes after some branches have reported running low on cash following worried customers pulling out their money to hoard at home.
Industry officials have not released exact numbers, but describe dozen of incidents across the country where branches have seen tens and even hundreds of thousand dollar withdrawals.
The regulators want to remind people that it is riskier to store cash in the home, where it can be stolen or lost in a disaster like a fire or a flood. Deposit accounts at federally insured banks are guaranteed for up to $250,000, and are a much safer option. The Federal Deposit Insurance Corp. issued a press release reminding Americans that since 1933, no depositor has ever lost a penny of FDIC covered funds.