MAIN | VIDEO | LINKS | BASIC FAQ | CHECKLIST | WHAT WILL WORK COUNTRY STATUS | AGENCY STATUS | Y2K & YOU | PROFITING FROM Y2K | LOVING Y2K

Y2k bank tips: Take out extra cash, enough for a long weekend. Keep your receipts and bank statements ready. Ask your bank what it has done to prepare. VIDEO Jonathan Aiken checks into the Y2K-readiness of ATMs across the country. Real 28K 80K Windows Media 28K 80K  ALSO: Business as Usual Expected for Nation's ATMs on January 1st MESSAGE BOARD: Year 2000 bug

August 25, 1999
Web posted at: 2:00 p.m. EDT (1800 GMT)

In this story: Industry calls withdrawals 'unwarranted' Preparations circulating more cash RELATED STORIES, SITES

WASHINGTON (CNN) -- America's banks tried to reassure customers Wednesday that their automatic teller machines won't fail at the end of the year.

Industry representatives announced Wednesday that their computer systems should hold together when the clock strikes midnight on December 31. Two years of tests, they said, have ensured that the devices should continue to spit out cash on demand for millions of users across the United States.

"Consumers should have complete confidence that their services are going to work normally ... once the New Year flips," said Dennis Lynch, chairman of the Network Executives Council, an industry association.

The group made the announcement in hopes of quelling fears stemming from the so-called "millennium bug" -- also called the Y2K bug -- a problem that could cause some computers to read the year 2000 as 1900.

Making ATMs Y2K compliant has been a top priority for banks, the networks that link them and federal regulators who have overseen efforts to be ready for the new century.

"We've done end-to-end testing with some of the largest banks in the country," said Philip Valvardi, president of MAC Money Access Service, a funds network with 40,000 ATMs in the United States. "And all along the way, we have communicated with both our customers -- the banks -- and also consumers, to let them know we will be ready, and again it will be business as usual on the first of the year."

The Federal Reserve Board is printing extra cash this year in anticipation that consumers will want more money in their pockets as the year 2000 approaches

But the industry warned that problems could still occur if the companies that service, operate and record transactions from the teller machines are not prepared for the turnover. So network representatives recommended taking out enough cash for an extended weekend -- but not much more.

"We really recommend individuals keep their money in their financial institutions," Cindy Ballard, a spokeswoman for the Pulse ATM network, told CNN. "That is the safest place for your money -- not your mattress, not on your person."

Stan Paur, the Pulse network's president, said withdrawing all or most funds from banks would be "unnecessary and unwarranted."

Because consumers concerned about Y2K problems could want extra money in their pockets, the Federal Reserve Board will increase the amount of money it is printing this year by $50 billion.

Some banks have put out signs reassuring customers that their ATMs will dispense money after the New Year

Wednesday's comments follow efforts by the American Bankers Association to enlist religious leaders to head off a possible panic. A sample sermon the group distributed to ministers seeks to convince their followers that the issue is a technical glitch, "not an alien invasion of New Jersey."

But the bankers group, in line with U.S. government policy, suggests that consumers prepare for the 2000 transition in the same way they would for a weekend snowstorm.

That means keeping handy some extra food and water, candles and flashlights with fresh batteries.

And since no one can give a 100 percent guarantee against Y2K failure, the best advice for ATM users is ask your bank about its preparations. And, just to be safe, keep good financial records on your own.

Reuters contributed to this report.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.