CLEVELAND (WJW) — The banking industry, like many others, is responding to the coronavirus pandemic and starting to put new measures in place.
Nik Wearsch, a financial advisor with Carver Financial Services in Mentor, said he always encourages clients to be prepared for the unexpected but not to panic.
“If you’ve got your immediate provisions set aside, food, a little cash, and then within your account you have money to carry you through a few months of needs, then there’s no need to make an immediate change,” Wearsch said.
He noted the federal government made changes after the 2008 financial crisis to support banks.
“I don’t think people should be worried about the bank not having enough money because the government’s already putting a lot of that emergency procedures in place,” Wearsch said.
He said most banks are federally insured. At FDIC-insured banks, all deposit accounts are covered up to $250,000 per depositor, per insured bank.
Many banks are also working with customers affected by the virus. For instance, Huntington Bank said it is suspending late fees and foreclosures and deferring payments. Banks are also encouraging customers to use drive-through service, ATMs and online banking.
“The banking system is going to be just fine. The money is going to continue to flow. The banking system isn’t going to collapse,” Wearsch said.
Banks are also reminding customers to be on the lookout for scams by phone, email or text. Banks will not typically ask for your full social security or account numbers, passwords and other sensitive information.