Times When Cash is King
Even under normal circumstances, packing stacks of cash under the mattress isn't exactly the most secure way to protect one's assets. On the other hand, however, it makes sense to have some cash available for emergencies in case of things like power outages. Yet, even with the unprecedented circumstances our world is currently facing, there are some important things to remember to stay calm.

While this is a very serious outbreak, it is not a natural disaster, and our responses should fit the circumstances. During natural disasters like earthquakes, fires, tornadoes, and hurricanes, crucial elements of the financial system go down instantaneously, such as massive failures in the electricity grid or the inability to deliver goods and services to specific areas due to flooding. In these situations, having cash on hand is of the utmost importance, as systems for accepting and paying with credit cards and other forms of payment may be disabled for extended periods.

Luckily, the current situation has not changed how most businesses accept payments, so switching to cash pay is unnecessary. It's also potentially dangerous.

The Risks of Withdrawing Too Much Cash
It's always good to have some cash around. However, there is a significant difference between some cash and too much cash. Knowing that difference is crucial. Each person must decide how much cash is necessary to have for emergencies and how much is dangerous to keep around. Keeping too much cash stored in your home, business, or elsewhere brings many risks along with it, such as:



Theft and Robbery - We all know that one of the greatest threats to the safety of keeping cash around is the threat of theft or robbery. Whether it happens because someone found out the money was there or they just happened upon the cash during an unrelated burglary, keeping large amounts of cash around makes theft and robbery a much more dangerous threat. This issue can even put the lives of loved ones and family members at risk, making it especially dangerous.


Lack of Insurance - Safely storing savings in a credit union or other financial institution provides a layer of protection that cash cannot bring to the table. With insurance on the money, there is no need to worry about anything at all! Homeowners or renters insurance may, in some cases, cover up to a certain amount of cash if it is lost, stolen, or damaged in a way that makes it unusable. The safety of knowing the money is all stored in one place, protected by state of the art cybersecurity measures, and insured in case of loss makes all the difference in the world.


Physical Damage - Since cash is a physical item, it can be damaged like any other physical item. When talking about large sums of cash, this is especially risky. Often people who store large reserves of cash inside their homes, businesses, storage sheds, or other properties report regret after disasters such as fire or flood completely wipe away whatever amount they had hidden. There is no getting back bills of cash that burned to ash in a fire. Keeping money secure in an account means that no amount of physical damage, whether to your home or to the bank itself, can ever touch your money. Your money is yours, no matter what happens, and that's the way it should be.


Alternative Options
Many credit unions, banks, and other financial institutions are finding new and creative ways to safely continue doing business during this time of unknowns. Most banks and credit unions are committed to providing the best possible service to their customers throughout the pandemic. They have taken many precautions in their continued business practices, such as switching to the drive-thru or appointment-only banking at their branches. These types of changes to the way business is done will allow companies to continue to operate without interruption, making it safe to keep your money protected and insured in its account.

As for the consumer, precautions such as making sure your debit card is fully functional and up-to-date should help ease some of the anxiety of this troubling time. A debit card ensures access to your account and your money, any time on any day, even if the branches of the credit union are closed at the time you need access. Debit cards also allow you to shop using the card itself by directly accessing the money in your checking account, rather than using a credit card and paying for it later.

This time is not easy for anyone. But, given the right plan of action, there is no reason to panic over your money or your accounts. If you decide to pull out some cash, make sure it's a reasonable amount, so you don't regret it later.