When the card readers are down: bank outages, dead ATMs and how much cash to keep at home
Card readers and ATMs need power and signal. Ready.gov says keep a small amount of cash in small bills at home. How much, where, and why the bank is safer than a mattress.
By Tom Calder · Updated November 2, 2026 · Sourced to Ready.gov, the American Red Cross and the FDIC
- Ready.gov's financial preparedness page says: "Keep a small amount of cash at home in a safe place. It is important to have small bills on hand because ATMs and credit cards may not work during a disaster when you need to purchase necessary supplies, fuel or food."
- Ready.gov's power outage page lists what an outage can do: "Close retail businesses, grocery stores, gas stations, ATMs, banks and other services." A card reader without power or signal is a plastic box.
- Both Ready.gov's emergency kit list ("cash or traveler's checks") and the Red Cross's survival kit list ("extra cash") put cash in the kit, alongside water, food and a flashlight.
- Small, not large. Enough for a few days of gas, groceries and a motel if you had to leave, in bills a cashier can change when the register is down.
- Do not raid your savings. Money in an FDIC-insured bank is insured up to at least $250,000 per depositor, per bank, per ownership category. Cash under the mattress is insured by nobody.
Why this is worth a thought
Most of us pay with a card or a phone and never think about it. That system has three dependencies: electricity at the store, a working connection to the card network, and the bank's own computers staying up. A storm takes out the first two across a whole region at once. A software fault at a bank or a payment processor takes out the third for everyone at the same time, with no weather warning.
Ready.gov lists the effects of an outage plainly. A power outage may "disrupt communications, water and transportation" and "close retail businesses, grocery stores, gas stations, ATMs, banks and other services." The stores that do open after a storm often run on a generator and a cash box, and the gas station with fuel may be taking cash only.
What the official guidance says
Ready.gov's financial preparedness page: "Keep a small amount of cash at home in a safe place. It is important to have small bills on hand because ATMs and credit cards may not work during a disaster when you need to purchase necessary supplies, fuel or food."
Ready.gov's basic emergency kit list includes "cash or traveler's checks" next to prescription medications, infant formula and pet food. The Red Cross's survival kit list includes "extra cash" alongside copies of personal documents and family contact information. Our emergency kit checklist and go bag checklist both carry that line, and the kit builder includes it.
How much, and why "a little"
Nobody official names a dollar figure, and we will not invent one. The sensible test is a few days of the things you would buy if the cards stopped: a tank of gas, groceries, pharmacy items, and a night or two in a motel if you had to evacuate. For many households that is a few hundred dollars; for a larger family with a long drive to relatives it is more.
Small bills matter as much as the total. Ready.gov says "small bills," and the reason is practical: a store running a cash drawer in an outage cannot break a hundred, and you do not want to hand one over for a bag of ice. Twenties, tens, fives and ones. Add a roll of quarters if your area still has coin laundries or parking meters.
Where to keep it
Ready.gov says "in a safe place." The two places that work are a small fireproof document safe, where it sits with insurance papers and copies of ID, and a sealed envelope in your go bag, so it leaves with you. Split it if you like: most at home, a smaller amount in the bag. Tell one other adult in the household where it is.
Keep it separate from the money you spend, or it will quietly turn into pizza money. Check it once or twice a year, when you check the kit's batteries and food dates.
The bigger risk is pulling money out of the bank
A payment outage is not a bank failure, and the answer to a dead card reader is a few hundred dollars in an envelope, not emptying an account. The FDIC says: "Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category." That insurance "is backed by the full faith and credit of the United States government," and "historically, the FDIC pays insurance within a few days after a bank closing, usually the next business day."
Cash at home has none of that. If it burns, floods or is stolen, it is gone, and a homeowners policy will typically cover only a small amount of cash. Keep the emergency float small and keep the rest where it is insured.
Two related habits round this out. Keep the phone charged, because a bank's app and a text alert are how you learn a card problem is the bank's and not yours; see our power outage checklist. And treat any message asking you to "verify" your card during an outage as a scam until proven otherwise; our cyberattack guide covers that.
This is a dull, narrow point and should stay that way. Card readers and ATMs fail in ordinary outages and ordinary IT glitches, so keep a few days of cash in small bills somewhere safe. It is not a reason to pull savings out of an FDIC-insured bank, where it is protected up to at least $250,000 and earns interest, and it is not a reason to buy a large safe. An envelope in a small fireproof box is the whole purchase.
Common questions
Why keep cash if I never use it?
Because card readers and ATMs need power and a connection. Ready.gov says ATMs and credit cards may not work during a disaster when you need to buy supplies, fuel or food, and lists ATMs and banks among the services a power outage can close.
How much cash should I keep at home for emergencies?
Ready.gov says a small amount in small bills. A practical measure is a few days of gas, groceries and a motel night if you had to leave. No agency names a dollar figure.
What bills should I keep?
Small ones. Ready.gov says small bills, because a store running a cash drawer in an outage may not be able to make change for large notes.
Is cash at home insured?
No. FDIC insurance covers deposits at an FDIC-insured bank, up to at least $250,000 per depositor, per bank, per ownership category. Cash at home is not insured by anyone, and a homeowners policy typically covers only a small amount.
Should I take money out of the bank before a storm or a cyberattack?
Take out the small float you need for a few days and leave the rest. A payment outage is not a bank failure, and insured deposits are protected by the FDIC.
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