Skip Nav
17 Gifts For Your Disorganized Friend Who Really Needs to Get Her Sh*t Together
Gift Guide
20 Affordable Gifts For Women in Their 20s
Holiday Living
40 Cheap and Easy Ugly Christmas Sweater DIYs

What Is a Run on the Bank?

Savvy ATM: Why a Run on the Bank Is So Bad

Bad banking news has many people fearing their life savings will suddenly vanish and has created a somewhat panic-ridden population. Questions are flying about pulling money from the bank in case it collapses, but that's the most counter-productive thing to do in this scenario. Keeping your money under your mattress is not the way to go!

According to Investopedia, a bank run is "a situation in which numerous bank customers try to withdraw their bank deposits simultaneously and the bank's reserves are not sufficient to cover the withdrawals." So, the fear that a bank will become insolvent and results in a bank run, is the exact reason a bank could become illiquid. When it comes to your money, panic-induced decisions are rarely good ones.


Recession-Proof Jobs
From Our Partners
Latest Afforable DIY & Organization
All the Latest From Ryan Reynolds