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Indiana banks: Is your money safe during COVID-19 crisis?

Banking association says not to worry
Tips to help your bank account during this pandemic
Posted at 7:34 PM, Mar 19, 2020
and last updated 2020-03-19 19:34:59-04

INDIANAPOLIS -- The COVID-19 pandemic crisis has created plenty of worries for Americans. What about our health, our jobs, our children's education, and our retirement accounts?

One thing you should not worry about, according to the Indiana Bankers Association, is the financial strength of your bank.

While the stock market crash may have left a big hole in your IRA or 401-K, banks are weathering the storm. "All 122 member banks of the Indiana Bankers Association are open for business and are able to fully serve the needs of their customers," according to association President and CEO Amber Van Til.

Like your favorite restaurant, you may not be able to walk into your bank, but drive-through operations are still in place and all banks continue to provide services through alternate delivery such as online banking, ATMs and phone banking.

"All depository banks are required by regulation to have pandemic response plans in place. These plans include strategy based on outbreak size, a framework for ensuring that operations continue, and periodic testing procedures to ensure workability," said Van Til.

Bank deposits are insured by The Federal Deposit Insurance Corporation (FDIC). According to the banking association, money has never been lost in an FDIC-insured account. Checking accounts, savings accounts, money market deposit accounts and certificates of deposit up to $250,000 per-depositor are covered by the FDIC.

"Banks in Indiana and nationwide are well-positioned to weather crises of all degrees, because their high levels of capital and liquidity act as buffers against economic challenges,: said Van Til. " From this position of strength, banks have the means to support the communities they serve."

According to the association, The Federal Reserve is infusing extra capital into the monetary system. This measure is a safety practice in response to the pandemic to increase liquidity, bolstering the financial strength already in place among U.S. banks.