Yes, Your Checking and Savings Accounts are Safe from COVID-19
Reading time: 2 Minutes
March 24th, 2020
As the COVID-19 situation continues to grow more serious, and the stock market see-saws up and down, it’s natural to wonder about whether the money in your checking and savings accounts is safe. Should you withdraw cash “just in case?”
If you’re worried about your accounts, good news: Thanks to something called the FDIC—the Federal Deposit Insurance Corporation—any money you have stored with a bank is insured up to $250,000 per depositor.* That means it’s insured against loss by the U.S. Federal government.
The FDIC was set up in the 1930s as a response to the bank crises of the Great Depression. It’s designed to function as a safety net in the unlikely event that a bank fails. Since it began, the FDIC says, no depositor has lost a single cent of insured funds.
In response to the current situation with COVID-19, the FDIC recently issued a press release assuring consumers that the viral outbreak does not pose a threat to banks, and that all covered money in FDIC-insured institutions will remain safe as ever.
Click here for a more detailed description of how the FDIC works, and a full list of what exactly is and isn’t covered.
In addition to the protection offered by the FDIC, individual banks have prepared response plans in anticipation of a pandemic. In fact, banks are required by regulation to have strategies and frameworks in place that enable the them to continue operations in the event of a natural disaster or pandemic.
Depending on how the COVID-19 situation evolves, you might not always be able to walk into a branch, but you’ll still be able to access your funds in a variety of other ways, including ATMs, online and mobile banking, and over the phone. Click here to learn more about the range of remote banking options offered by Bank of Hawaii.
To get the latest updates on Bank of Hawaii’s response to COVID-19, visit boh.com/covid19.
*See the FDIC website for details on the per depositor limitation.
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