When thinking about war , panic ensues because people want to know how they will be able to take care of their family if everything is collapsing around them. The main concern becomes money. What happens to a person's money in the bank during a war?

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    If a country goes to war, it isn't uncommon for an economic crisis to occur. Does the government have the power to take money from people or freeze their accounts?

    Source: Getty Images

    German children play with money due to its low worth and hyperinflation

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    Inflation and war have been connected throughout history.

    Throughout history, a word that's common in the economy isinflation” and during a war, it's “hyperinflation.” VoxEu released a study that claims that during and after wars, inflation usually increases exponentially with median inflation peaking around 8 percent. In World War I, inflation skyrocketed in Europe. Starting in 1914, inflation rose to 50 percent YoY in Germany and 24 percent in the United Kingdom.

    Germany experienced what's called “hyperinflation.” Many people didn't know what to do with their money and if it was worth anything. During the war, Germany racked up debt worth $150 million and printed so much money that six times the pre-war amount was in circulation. When the U.S. joined the war in 1916, inflation rose that same year by 17 percent.

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    The same trend occurred during World War II. Europe rapidly increased military expansion at the risk of high inflation in 1939 that didn't decline until 1949 and 1950. What's the bank's role in all this?

    Source: Getty Images

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    What happens to money in the bank during a war and can the government seize it?

    During a war, the main economic concern is avoiding inflation and keeping banks stable. However, the more aggressive a war becomes, the more inflation becomes highly likely. Throughout history, it wasn't uncommon for people to trade their cash for things like gold and other precious metals. A government can seize money from people in certain situations.

    For example, Canadian Prime Minister Justin Trudeau recently froze the accounts of people who received crowdfunding deposits for protesting against vaccine mandates. In history, wars that reach extreme points see the infiltrating country impose their own currency over the country they are invading, while in other cases the stock market suffers. Currently, banks are hit in a more technological way during periods of war and conflict.

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    According to recent reports, Ukrainian banks and government websites were hit by a cyberattack . The attack flooded the network and prevented other people from accessing it. Although there are speculations that Russia is responsible for the attack, the speculations haven't been confirmed. White House officials said, “We consider these further incidents to be consistent with the type of activity Russia would carry out in a bid to destabilize Ukraine.”

    Currently, in Ukraine , people are lining up to withdraw money for themselves and their families. The Donetsk central bank placed a withdrawal limit max of 10,000 roubles or $129 a day, although credit card purchases are currently stable.

    Should I take my money out of the bank during war?
    “Your money is safe inside a bank. Bank deposits are insured by the FDIC and are protected up to at least $250,000. The best place for your emergency fund is a money market account or savings account. If you want to keep some cash at home, that's fine, but I don't recommend cashing out your savings.” more
    How much money can you transfer from bank to bank?
    Some banks allow money transfers up to $10,000 per month, and a few even as high as $25,000 a month. However, other banks have much stricter ACH transaction amount limits, which can be as low as $2,000 a month, so it's important to determine for what purpose you'll be using ACH transfers. more
    Can you transfer Money from Zip Money to bank account?
    Can I transfer funds from Zip Money or Zip Pay to other accounts? You can't transfer funds to your bank account, credit card or personal loan accounts. You can use Zip Money or Zip Pay to pay some bills via BPAY, including utility and phone bills, when you're able to provide the biller's BPAY details. more
    How much money can you withdraw from the bank before the bank reports to the IRS?
    $10,000 Under the terms of the Bank Secrecy Act, financial institutions are currently required to report any deposits or withdrawals of $10,000 or more. They also provide their customers and the IRS with Form 1099-INTs relating to any accounts that earn interest of more than $10 annually. more
    Can you open a new bank account if you owe another bank money?
    There's no hard and fast rule that says you can't open a bank account if you owe a bank money. But since many banks check credit reports and bank consumer behavior reports in order to avoid risky customers, doing so can often be difficult unless you open an account geared toward people in that situation. more
    Can I open a bank account if I owe money at another bank?
    There's no hard and fast rule that says you can't open a bank account if you owe a bank money. But since many banks check credit reports and bank consumer behavior reports in order to avoid risky customers, doing so can often be difficult unless you open an account geared toward people in that situation. more
    Can a bank take your money if you owe another bank?
    Under federal law and regulation, financial institutions cannot do a setoff of money in your account to cover missed consumer credit card payments that you owe the institution (unless you previously authorized it to pay your credit card through automatic withdrawals from your account). more
    How do I withdraw money from my bank to my mobile money?
    To connect your bank account to mobile money, contact your bank's customer care or visit the bank and opt for such service. Mobile banking services brings convenience to you. It saves time and energy as you can withdraw and send money at any time via mobile money services. more
    Can a bank take your money from another bank?
    Is this legal? The truth is, banks have the right to take out money from one account to cover an unpaid balance or default from another account. This is only legal when a person possesses two or more different accounts with the same bank. more
    Does it cost money to transfer money from Robinhood to bank account?
    Transfer fees: We don't charge a fee for transferring money between a bank and your brokerage account. more
    Can I withdraw money from my bank account with no money in it?
    It is possible to withdraw funds beyond the account balance, but they are subject to repercussions, bank terms, and fees. Funds withdrawn beyond available funds are deemed to be overdrafts that can incur penalties. more

    Source: marketrealist.com

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