Banking Security – How Your Money is Protected
When you put your money in the bank, you want to know that it will be there when you need it. Fortunately, banks take a number of precautions to ensure that your money is safe and that you are safe from identity theft and other possible problems. What are some of the ways that banks keep you and your money safe?
Up to $250,000 Is Insured
Up to $250,000 of money kept in an FDIC-insured financial institution is guaranteed to be there no matter what happens. This limit is $250,000 per institution, which means that you may need more than one bank account if you are hoping to keep your money safe above that limit. For those who have significant wealth, it may be a better idea to keep that money tied up in tangible assets or other investments in addition to having accounts in banks or credit unions.
Online Banking Comes With Passwords and Security Questions
There are many measures intended to provide fraud protection for those who do their banking online. For instance, you may be required to answer a security question to gain access to your account as well as enter a password. If you are trying to change your password, you may need to answer a security question or allow the bank to send you a code via your phone or email. Depending on your security settings, it may not be possible to change anything about your account without making a phone call to the bank or another customer service number.
You Generally Need Multiple Forms of ID to Open an Account
When you open an account at a bank, you generally need to show multiple forms of identification including your drivers license and birth certificate. You may also need to show your social security card to prove who you are. If someone tried to open an account in your name, that person would need both access to that information as well as original copies of your social security card or birth certificate. Assuming that this information is kept on your person or in a safe place, this is not likely to happen.
You Can Challenge Suspicious Transactions
If you notice a suspicious transaction on your bank statement, it is your right to challenge it and get it reversed. While it may take several days for the money to be returned to your account, you are generally not liable for purchases made on a debit card unless there is significant evidence showing that you authorized them.
Cancel Your Card Whenever You Want
If you believe that your debit card was stolen or lost, you can have it cancelled immediately. This may also be a good way to put an end to any recurring charges that you believe were made in error or that you didn’t authorize. Once your card is cancelled, it can no longer be used, and the new card that you get will have a new number, which means older cards won’t work for anyone who may have them.
For those who have money in a bank, it is important that it is secure at all times. Otherwise, you could lose the money that you worked hard for and will need to pay bills, provide for your family or ensure that you have the cash necessary for a comfortable retirement.