SHOULD I WITHDRAW EXTRA CASH?
4 reasons that may be a bad idea
Some people say you should withdraw cash to protect yourself during the coronavirus outbreak. We wonder, why?
Your money is safest at your CU. Here are four reasons withdrawing extra cash may actually be your worst possible move right now:
- Cash is vulnerable. Credit union accounts are federally insured to $250,000, making them a gazillion times safer than keeping your money under the mattress or in your pocket. If your cash is stolen from your house, car, or wallet, you’re out of luck, whereas losses from a stolen debit or credit card often are reimbursed. Since it’s inception, no one has ever lost a dime in savings at PUD Federal Credit Union, or any other federally insured credit union.
- Cash is not required. With so many secure ways to access your accounts, there’s almost no reason you’ll need extra cash. The safest choice is to let your credit union keep your money safe in the vault, then pay with your convenient debit or credit card, or write a check, at the store.
- Cash is tempting. With restaurants, conventions, sports and entertainment centers, and other public places forced to close during the coronavirus outbreak, you may actually need less cash at this time. Unless, of course, you’ve got it stuffed in your wallet, tempting you to spend money you would not have spent if it were secure in the bank, earning dividends.
- Cash is, well, kind of dirty. As regards your personal health, the Centers for Disease Control and Prevention recommends always washing hands thoroughly after handling cash, because you never know where it’s been. It’s a good idea to keep a few dollars on hand for parking meters, yard sales, and so on. But carrying around your personal savings will not protect you from viruses or financial hardship.
Scam artists often prey on unsuspecting victims during emergencies.
The Federal Trade Commission to be wary of medical breakthrough claims related to coronavirus, or requests for donations. The U.S. Securities and Exchange Commission warns about supposed investment opportunities related to the outbreak. And the World Health Organization warns that criminals are phishing for personal data by posing as WHO representatives.