The coronavirus has weakened our financial markets and our economy as social distancing has slowed economic activity. With high unemployment and tweaked growth, we have been in a recession.
Are your bank and financial accounts safe during this time? Yes, it is to a great extent. However, it is essential to know if your funds are secure. That varies by product and how it is offered.
We will discuss your financial accounts at banks, credit unions, and at your brokerage firm. We have some recommendations here to better protect yourself.
The Fed has taken massive emergency measures not seen since the Great Recession, which we address here. Chair Jerome Powell deserves credit for aggressively providing liquidity to lenders and our financial system swiftly.
Today, banks are more robust than during the last recession. However, credit pressures are now rising, and cash is needed by many. That is especially true for small companies.
From Economic Stability To Economic And Financial Market Volatility
The Electronic Fund Transfer Act, also known as Regulation E, protects consumers when using electronic means to manage their finances. Electronic payments often take the place of traditional paper checks.
SIPC provides coverage for investment assets held in a brokerage, limited to the custody function. Coverage is up to $500,000 for all investment accounts at the same institution, including a maximum of $250,000 held in cash.
SIPC Provides More Limited Safekeeping For Investors