Is It Safe to Store Money In the Bank or In The House?
- July 25, 2017
- 2 min read
- 5241 reads
Have you ever wondered why a bank is a safe place to store money? How about whether you should store your cash in the bank or at home? Financer.com found out the answers to these questions!
Many financial advisors have promoted the idea of saving in banks. At the same time, you may feel your money is not safe there. Should you save at home?
Your bed isn’t great for storing your savings. Keeping huge amounts of money is a bad idea because;
- Your savings will not earn interest. Thus over time, your money loses value
- Risk of fire or theft wiping out your savings
- Encourages unnecessary spending
Most insurance policies will not cover for money stored in the house. A bank is usually the safest place to store your savings. The main reason is that your bank savings are always protected.
How to Find a Safe Home for Your Cash
You will need to set up a bank account. This can cater for your everyday needs. You can also set up a separate savings account. This can be stored to earn more interest if you don’t urgently need it.
Most banks and building societies are free to open an account. You can find all the help you need there. Saving at home puts you at great risk of losing money.
There are plenty of savings accounts to store your spare cash. You will get better interest rate if you store your money for a long time.
Benefits of Saving Money
We all need an extra coin for a rainy day. You should not wait for such occasions to save money. Expert suggest that a financial reserve of three to six months. 44% of Americans don’t have savings to cover surprise expenses.
Certain events such as bad power outage can render institutions temporarily unavailable. In such cases you cannot withdraw your money or use your credit card. So it is always practical to practical to have some physical cash.
Safe Places to Store Your Cash
You might hesitate to save at home. It might be sometimes be hard to find a suitable location at home to hide cash. The old tricks might not work now. Under the mattresses is one of the first places burglars look.
There are however some reliable places to save your cash;
- Through real assets such as watches or jewelry
- Invest in a business
- In a treasury or federal reserve