Introduction
In today’s digital world, managing your money wisely and securely is crucial. One good way to do this is by having accounts at more than one bank or credit union. This can help reduce the risk of losing access to your money if a bank has problems. For example, the recent cyberattack on Patelco Credit Union showed how important it is to have backup options.
The Patelco Credit Union Cyberattack: A Warning
In July 2024, Patelco Credit Union faced a major cyberattack that disrupted their services. Many customers couldn’t access their accounts for a while. This incident shows how risky it can be to keep all your money in one place. If your only banking institution has issues, you might not be able to get to your funds when you need them most.
Why Reducing Risk is Important
Having accounts at more than one bank can help protect you from these risks:
- Bank Failures: Although it’s rare, banks can go out of business. If this happens, you might not be able to access your money for a long time.
- Account Lockouts: Banks might lock your account due to suspected fraud or mistakes, leaving you without access to your money.
- Technical Issues: Banks can have technical problems that temporarily stop you from using online services or ATMs.
- Cyberattacks: As seen with Patelco, cyberattacks can stop you from managing your money, so it’s smart to have a backup plan.
How to Protect Your Money
To make sure you always have access to your money, consider these steps:
- Use Multiple Institutions: Have accounts at at least two different banks or credit unions.
- Local Branch Access: Choose at least one bank or credit union with a local branch you can visit in case of emergencies or for cash transactions.
- Emergency Funds: Keep some money in an account you can easily access during emergencies.
- Regular Monitoring: Check your accounts regularly to ensure everything is working correctly.
Benefits of Credit Unions and Banks
- Credit Unions: Usually have lower fees, better customer service, and higher interest rates on savings. They are owned by members and focus on serving them.
- Banks: Often have more branches and ATMs, better online services, and a wider range of products.
Conclusion
Having accounts at more than one bank or credit union is a smart way to protect your money. The recent Patelco cyberattack shows how risky it can be to rely on just one bank or credit union. By spreading your money across at least two financial institutions, you can reduce the risk of losing access to your funds. Choose a mix of credit unions and banks and make sure at least one has a local branch for extra security and convenience.