Banks advising people to keep cash at home as “geopolitical threats” worsen

Dutch banks are going to advise consumers to keep cash at home because of the increase in geopolitical tension in the world, said a spokesperson of the Netherlands Association of Banks (NVB). It will be the first time that the banks give this advice.

The bank association is going to discuss this after the Christmas break with the Maatschappelijk Overleg Betalingsverkeer (MOB). Social organizations, such as elderly organizations and the Consumers' Association, but also the Dutch Payments Association, and interest groups, such as Koninklijke Horeca Nederland and MKB-Nederland, work together in this.

“We are giving integral advice about how you can have your financial affairs in order if there are problems with payment structures. This can be about cash money, the denominations needed, and how much that should be. But also about keeping an extra bank account or credit card,” said the NVB spokesperson to ANP.

Minister of Defense Ruben Brekelmans said on WNL op Zondag that the Netherlands should prepare for all possible war scenarios due to the threat from Russia. He also advised people to have cash at home.

The NVB does know whether people have already withdrawn money from their savings. “We have no view of this. But if everyone withdraws some money from their savings account, you will not immediately see it come back in huge numbers," said the spokesperson.

He emphasized that banks are very well prepared for all kinds of threats like cyber attacks, which means that customers' savings are always safe. "Cyber ​​resilience has been a top priority for banks for years. Banks inform each other about incidents, analyze them jointly, and share effective countermeasures," the spokesperson underlines.

The advice of the Maatschappelijk Overleg Betalingsverkeer is expected to be published in the first quarter. A specific date has not been announced for this as of yet.

The Dutch Association of Insurers reacted skeptically to the advice to keep cash on hand. It can be difficult to prove the amount of cash that was actually in the home at the time of the burglary, which can make it more complicated to submit a damage claim, a spokesperson for the insurance association said.

Compensation for stolen cash usually varies between 250 and 500 euros, depending on the insurer, she said. “If you have large sums of money in your home, this can lead to distress in the event of a burglary.”

The association also warns that the risk of a break-in increases when burglars know that there is a significant amount of cash at the location.

“Cash in the house is covered by your home contents insurance in principle, but there are limitations,” said a spokesperson for the insurance association. She said people should review the terms of their insurance policy to familiarize themselves with coverage for stolen cash.