Should the current economic crisis make you better off having your money as cash or in the bank?

Answer 1

That depends on whether or not you feel your money is safe in the bank. Remember, all money in bank deposits is insured up to $250,000. That means that even if your bank fails, you do not lose any money (unless you have over $250,000). No one has ever lost money that was insured by this program. Most would advise to keep money in the bank and let it earn interest rather than keep it in cash. The reason is simple: If you hide it in your house, what if your house burns down? If you carry it around, what if you get mugged or lose your wallet? If you bury it in the backyard, what if you forget where you buried it? Basically, it is less risky to keep it in a bank even if that bank has a risk of failure rather than trying to safeguard it yourself.