Don't Dash For Cash: Authorities Say There's No Need To Empty The ATM


Toilet tissue is not the only paper product. That Americans are hoarding. Some people are stockpiling paper money though there are risks to keeping too much cash on hand. Npr's Scott horsely reports in a frightening time cash can't seem like a much-needed security blanket in wealthy neighborhoods around the country. There are reports of people pulling tens of thousands of dollars in cash out of their bank accounts. Demand was so high one bank branch in midtown. Manhattan temporarily ran out of hundred dollar bills. The New York Times says the bank was quickly restocked but federal bank regulators are urging customers to calm down. Forget the mattress forget horn cash. Your money is the safest at the bank yellen. Amac Williams is the chairwoman of the Federal Deposit Insurance Corporation which Safeguards Bank accounts. She understands the anxiety corona virus provokes. But says there's no need for customers to empty the ATM just as it does not necessarily rational to hoard toilet paper it is also not rational to hoard cash. Some banks have closed branches or limited hours out of concern for their workers but ATM's are still operating with frequent cash deliveries from armored trucks. Treasury Secretary Steve. Mnuchin noted this week. Armored truck drivers and others who work in financial services are considered essential parts of the nation's critical infrastructure. Greg McBride bankrate Dot Com says because that infrastructure is still functioning. The race to grab cash is misguided. This is not a natural disaster like a hurricane or an earthquake where the electricity is out came. It systems are down. This is the opposite in many ways in that. If you're hold up at home having a pile of cash doesn't do a whole lot of good. Mcbride says homebound. Customers are better off leaving their money in the bank so they can pay their mortgage or credit card bills online and where they don't have to worry about loss or theft before the corona virus hit McBride notes. Americans were steadily moving away from cash relying more and more on credit or debit cards as well as digital payments even the person to person payments That's increasingly done. Through apps like then mo or Zell and not by region into your pocketbook out Some green stuff and handing it to your colleague. Of course there are millions of Americans who don't have bank accounts and may have to rely on cash. Some have suggested handling paper. Money may increase your chances of getting or passing on the corona virus. Although there's little scientific consensus on that in some cases people's rushed to pull money out of the bank has been stoked by scam. Artists McWilliams says the FDIC worn a California gold dealer last week to stop advertising its products with the false claim that consumer bank accounts could be seized in a time of crisis. That is absolutely false. It's patently false. And frankly it's criminal. In my opinion the nation's banks came into this crisis in strong financial shape even if a bank fails McBride says deposits are insured up to a quarter million dollars per person. Nobody has ever lost any money. That's been protected by federal deposit insurance and I think that's a point worth underscoring to consumers that are unsettled enough by the events that are going on from a health standpoint so if you need a security blanket in these uncertain times grab an extra roll of toilet paper if you can find one but leave your cash in the back Scott horsely. Npr News Washington.

Coming up next