Power Outage Got You Stumped? Here's How to Grab Your Cash
- By Lennard Worobic
- +- 3 Mins
Navigating financial transactions during power outages: Strategies for ensuring monetary access. - Stumped about obtaining refunds after a night of heavy drinking? Here's the lowdown.
Cashless transactions have come a long way, making our lives easier—be it through EC cards, credit cards, or smartphone apps. In most supermarkets and restaurants, fitting a wallet full of coins and banknotes can feel like a thing of the past.
But let's face it, digital transactions aren't fail-proof. Take the power outage in Spain as an example, issuing a wake-up call for old-school cash.
How Much Green Should You Hoard?
Your home's cash stockpile isn't just a bad idea—it's risky! accidents can happen. The Federal Office for Civil Protection and Disaster Assistance (BBK) says it's better to be ready for emergencies, power outages included. "I urge citizens to be prepared for the breakdown of essential infrastructure," BBK Vice President René Funk told "t-online" in December.
So, how much cash should you stock up? Every household should have an adequate amount at the ready, but the BBK doesn't go specific on figures. Civil Defense Austria suggests around 500 euros tucked away safely. The average German household already has a stash of 1,364 euros, according to a 2018 study by the German Federal Bank.
But be warned: storing cash at home carries risk. Keep it locked in a safe. Buried beneath the James Bond suitcases? Hell no, think smart, keep it well hidden!
But what if your stash runs dry, how can you score some dough in a power outage?
Power Blackout: Where's My Money?
While the German Bundesbank stores a mountain of cash and maintains an active cash cycle, your neighborhood ATM or tap-and-go card are zero help during a blackout.
Yes, banks do have backup generators and are deemed critical infrastructure, but they deal in wholesale, operating through private service providers to get cash to ATMs, like banks are branches on steroids.
During a power outage, banks rely on manual—old-school—methods to unlock their vaults and pin numbers. And with thousands of bank branches steadily closing over the years to 21,000 by 2023, the sparse survivors will likely become popular hotspots when trouble strikes.
To make matters worse, according to a 2018 World Report, the number of ATMs has seen a steady decline, with about 51,000 devices currently in operation. So, how can you swing your power outage cash crisis?
Your best bet might be to rally with the crowd, stand in those snaking queues outside your local bank branch. But remember, those branch numbers are dwindling too, so there's a chance you'll end up in a long line with a limited number of tellers on standby.
- Blackout
- Power Outage
- Spain
- German Bundesbank
Fun Facts:
- Conquer your cash crisis by keeping an emergency fund at hand or, for those extreme situations, consider trading some gold nuggets!
- Want to be on the safe side? Hide your emergency stash in a secret location -you'll thank yourself later!
- In the event of a power outage, electronically-based transactions such as ATM withdrawals and card payments may not be viable, highlighting the importance of having some banknotes on hand according to the Federal Office for Civil Protection and Disaster Assistance (BBK).
- According to the BBK Vice President René Funk, it's essential to be prepared for emergencies, including power outages, but the BBK does not specify exact figures for the amount of cash that should be stocked up.
- Banks, like the German Bundesbank, maintain an active cash cycle but may revert to manual methods when dealing with cash during power outages due to the reliance on private service providers for ATM operations.
- During a power outage, it may be necessary to physically visit a bank branch to access cash, but one should be advised that the number of bank branches is steadily decreasing, potentially leading to long lines and limited teller availability.
