Your Money is Safe in the Bank
During these unpredictable times, even the smallest provocation can trigger anxiety, and cloud your better judgment when it comes to important decisions. You definitely don’t want such feelings to influence you when considering whether or not your hard-earned money is still safe at your local bank. This article is intended to help put any anxiety you might be experiencing at ease, and to provide some clarity and comfort in knowing that your money will always be safe inside of an FDIC-insured bank (And yes, Sunflower Bank and First National 1870, a division of Sunflower Bank, are indeed a Member FDIC-backed financial institution). We will also provide some tips on how to keep your cash secure when using mobile banking platforms and digital payment apps.
Whatever form your bank’s operating conditions may look like during this time, your money is insured by the FDIC ( https://www.fdic.gov ). What is the FDIC, you ask? It is the Federal Deposit Insurance Corporation, and its backing means that any deposits with an FDIC-insured bank will continue to be protected up to at least $250,000.
Much like our organization, the FDIC has a long history of safety and security. It was founded in 1933, and began insurance services in 1934. Since that year, they state, “No depositor has lost a single penny of insured funds due to bank failure.” By now, you may be wondering what type of money is insured. The answer is simply deposit types of accounts, like checking, savings, CDs or Money Markets. However, the FDIC doesn’t insure investment types of accounts, such as a wealth management product, for example.
A major purpose of the FDIC is to help create stability and encourage confidence in our country’s financial system. In doing so, it helps to prevent mass “run on the bank” scenarios, such as what contributed to the Great Depression.
A recent popular trend, especially with the advancement of COVID, is an increase in the use of contactless payment, and for good reason! Subsequent to the pandemic, the use of digital apps such as Venmo, which allows you to transfer money and make contactless payments right from your mobile device, have seen a sharp rise in usage. With Venmo, there are virtually no fees attached -- just link the app to your debit card or bank account, and you’re set! While Venmo is a standalone app, there are also integrative apps such as Zelle®, which are commonly used within your bank’s mobile banking app. With either kind of app, you can send money directly from your bank account to anyone with an email address or cell phone number.
When using standalone apps such as Venmo, we recommend you always transfer the money you are paid back into your bank account as soon as possible. Money stored on Venmo is not insured by the FDIC, and while it is sitting in the app, it is not protected by many banking regulations as well. Keep a few dollars in there if you like, but we recommend you don’t let the amount get into the triple digits. Another thing to note: You can transfer money from your digital payment app into your online bank account for free, but if you want that money instantly, you will be charged a small processing fee.
At Sunflower Bank, we are always looking for ways to make it more convenient for our customers to bank with is. In fact, we will soon be launching a whole new personal online banking and mobile banking experience in order to serve our customers even better. This will include a new mobile banking app, with built-in Zelle® capabilities.
We hope we have made you feel more confident in the security of your money while also shedding a little bit of light on the convenience and safety of making digital payments. Times are definitely changing – we used to dig around in our car seats or couch cushions for spare change, and now we can find ourselves searching our phones for what could be a couple hundred of dollars built up in an app!
Until next time, stay safe, and be smart with where you store your money. And remember, the money in your freezer or hidden in a book isn’t insured at all. So if you have any questions regarding mobile banking, contact one of our banking professionals to see how we can help.