Should I withdraw my bank account in case of Great Depression?

United States
September 25, 2008 7:01pm CST
Just as a precaution, I'm wondering, if the 2nd depression does happen and the banks start taking from people's accounts... do u think I should withdraw all my money and wrap each single bill in separate ziploc and hide it somewhere for the time being? Or should I just stay cool for now? When should I withdraw it if so?
1 person likes this
4 responses
@stealthy (8181)
• United States
26 Sep 08
If you have less than $100,000 in the account, just leave it there since it is insured up to that amount by the FDIC. If you have more than that amount in one account than you should spread it out over more than one bank. However, there are certainly better things to do with your money than letting it just sit in a bank account. Even in these times there are still some good investments in the stock market.
• United States
26 Sep 08
Stealthy, True. I actually don't know anything about stock market investments though. Any good suggestions/advice?
@stealthy (8181)
• United States
26 Sep 08
Investing is never a sure thing and depends very much on one's own situation, risk tolerance, stage of life, etc. I almost never give specific advice since I would feel so bad if it didn't work out like I thought it would. One should always do their own research and decide what kind of investments they are suited for and then what is best for them. Since I have been unemployed for a long time but had some money because I saved at least 20% of mine income when I was employed, I tend to look for investments with good dividends since I need that to live off of.
@underdogtoo (9579)
• Philippines
26 Sep 08
Withdrawing money is a good idea but I don't like the idea of going to a bank and fall in a long line. Besides, what would I do with the money? I would probably just spend it till it disappears. Cheers!!
@cream97 (29085)
• United States
26 Sep 08
If you feel that this may happen, go ahead. But, if it fails then you will have so much money to sort out..
• Canada
17 Dec 08
Don't know if you're still checking this, but I thought I'd give my two cents. If you do withdraw your money, I would do something with it. Don't just keep it at home in ziploc bags. Currency only has worth because we all agree to accept it in exchange for other products. It's worth is therefore highly dependent on the supply and demand for money. This is why countries can't just print as much money as it wants, because the money decreases in value the more there is in circulation, so prices just rise as a result. Some countries (argentina is one that comes to mind) experienced periods of hyperinflation, where the price of goods was more than doubling each year. In cases like this having your money at home is a great way to quickly make it worthless. I think that rather than keeping your money at home you're better off spending it, and keeping those assets at home. Find things that are useful to your family first, and things that others would find useful second. You might end up having to barter if things ever get bad enough. Of course no one knows if they'll get that bad, but then again by the time people know for certain that the situation is really that bad there will be runs on the bank to try and withdraw money, and, well, here is a secret: Banks generally only have enough physical cash on hand to pay out 10% of the people who have deposits with them. So keeping that all in mind, I would say buy yourself things you need now, if your'e going to invest in a new roof etc. do it now. Don't go into debt or anything, and leave yourself a bit of a cushion, but really leave the minimum amount in the bank (enough so that your paycheque goes in, you can pay bills out, etc.) and take the rest out and do buy some long term assets with it.