In the midst of advancing payment technologies, automatic online bill pay, mobile money transfers and credit card payments, we sometimes forget that technology can be fickle and insecure. Especially in times of crisis, cash is sought after as a steadfast and life-giving necessity.
For many reasons, security included, cash remains king as the most reliable payment method. In the tragic aftermath of Hurricane Sandy, many people are turning to cash more than ever. Banks and credit unions, which are required by regulatory agencies to have expansive disaster relief plans and secure backup networks, say the immediate challenge during unexpected emergencies and power outages is making sure customers have access to the bank’s services — and cash. Make sure you are cash ready for any emergency with one key rule!
#1 Rule for Financial Stability during a Natural Disaster:
*** Withdraw Cash Early ***
This cannot be stressed enough! Withdrawing enough cash to sustain you or your family before and after the storm could literally save your life. In the wake of disaster, cash can carry you through the storm. That’s why the American Red Cross lists “small bills and change” among the 14 basic supplies in any emergency preparedness kit. Following this 1 simple rule, “Withdraw Cash Early” will help you avoid these major setbacks:
- Transaction limits and outages: Many retail stores and banks, despite best efforts, cannot accurately project the surge in cash demand during an emergency. The Washington Post noted, of M&T Bank’s 2,000 ATM network, about 200 lost power and one machine in New York’s Hudson Valley ran out of cash. It wasn’t just ATMs and banks that were feeling the pinch. The Harris Teeter in Adams Morgan, which generally allows customers to take out up to $200 using their debit cards, limited cash-back transactions to $50.
- Bank branch closures: As we saw with Hurricane Sandy, many merchant locations and banks stocked their ATMs and then closed the store front. Some financial institutions remained closed for several days during and after the storm. Even with backup systems in place, some storms will be strong enough to hinder banks for days. At Maryland based Sandy Spring Bank, the staff prepares for large storms by bringing in trailers with backup generators and arranging for extra diesel fuel to keep backup systems running. However, earlier this year as thunderstorms swept through the region, the bank still had nearly 20 bank branches lose power for up to four days.
Would you be Red Cross ready? Take this quiz to see if you would be prepared for an emergency: http://arcbrcr.org/#SITE?id=300206