While keeping cash in a safety deposit box might not be the best plan, hiding cash in a safe or another location inside a home might worsen. Money not correctly secured may end up stolen or suffer other fates. For example, putting funds into a bank account could be a better plan, although some might wonder how safe bank accounts are.
Putting Money into a Bank Account
Depositing funds into a bank account protects the money since the deposit provides FDIC insurance for up to $250,000 of all account balances. The insurance covers any losses due if the bank defaults, and multiple accounts may include checking, savings, money market, and certificate of deposit options.
Treasury and other bonds could serve as investment vehicles for the funds. Be mindful that the federal government never defaulted on any Treasury bonds or notes. Purchasing corporate bonds, however, might come with risks.
Choosing Accounts
Savings and checking accounts are often preferable to those who deposit and withdraw cash continually. For example, a money market account might limit the number of withdrawals while providing a higher interest rate than checking or savings accounts. Certificates of deposit pay a guaranteed interest over a set timeframe, but any withdrawals before the maturity date come with a penalty.
Bonds pay interest until their maturity date. Some wonder about the number of bank accounts you can have. According to the experts at SoFi, “There is no limit on how many bank accounts you can have. How many bank accounts you should have can depend on your organization preferences.”
In-Person Withdrawals
A bank would doubtfully only take someone’s word for who they say they are. If the person tries to withdraw funds from an account, expect a person to provide the correct account number and present identification. The bank would doubtfully give money to someone who cannot prove their identity.
Debit Card Safety
Banks provide debit cards so customers can conveniently make payments or withdraw funds at other locations. Call the bank immediately if you lose a debit card to freeze or cancel the card. Otherwise, it could fall into the wrong hands, and unauthorized transactions may occur. Protect the PIN because someone could take cash out of the account after learning it.
Proper Management of Accounts
Of course, many transactions are app or internet-based in today’s age. Anyone worried about the safety of their money should take steps to protect their accounts. Sometimes, the most fundamental steps keep things secure. First, protect all passwords and change them if they appear compromised.
Read about Phishing Scams
Phishing schemes take many forms, and they intend to trick someone into providing financial information. For example, those who know about typical scams may recognize them and not fall into traps.
Invest in Identity Theft Protection Plans
Identity theft services could monitor accounts to determine if anything strange occurs. For example, an identity theft plan may come with insurance if someone steals any funds.
Depositors could choose among several safe banks, savings, and investment accounts. Customers should take additional steps to protect their funds. You never have to worry about safety while banking with SoFI Invest (SoFi Bank).
