0117 929 2104
It's impossible to predict the chances of financial systems being hacked or frozen, but experts believe keeping a portion of cash reserved at home is a wise idea. Whether it's a small pot readily available for dipping into for emergencies or a substantial deposit stowed away in a money safe, any cash must be kept away safely and discreetly. Previous research from the Financial Services Compensation Scheme found that billions of pounds are kept in UK homes, with households holding an average of around £200 in cash
This brings us on to a much-asked question: How much cash should you keep at home?
In this blog, we'll look into the practicalities and legalities of storing cash at home, with a couple of tips thrown in along the way.
How Much Cash Should You Keep at Home?
The amount of money recommended to keep safe at home is anywhere between £100-£300. This rough guide comes from financial advice around keeping a small amount of cash buffer accessible for short-term emergencies. For further financial security, experts recommend saving enough money to cover the essentials over a three to six-month period.
It's important to consider numerous factors before building up cash savings, as a large sum of money exposes you to more risk. If you've decided to keep a limited amount of cash on hand, be sure to store it responsibly in an insurance-approved home safe.
On a practical level, keeping large sums of money at home needs a lot of careful consideration. For a start, you have to find places to hide it securely. If you want to store thousands of pounds, it's not easy to keep track of. One huge pile of banknotes can disappear in an instant if you're unlucky enough to lose your house in a fire or flood. Therefore, sensible fireproof safe storage would be wise.
Are There Any Legal Requirements Around Storing Cash at Home?
There's no legal limit on how much money you can keep at home. Some limits exist with bringing money into the country, and in the form of cash gifts, but there's no regulation on how much you can keep at home. If someone wanted to store £1 million at home, there are no laws against it - the practicality of such an action makes this an unwise decision to take.
If law enforcement catches wind of thousands of pounds in used notes being stored within a domestic property, this can open you up to questioning and further investigations.
Storing Cash at Home and Your Insurance
Contrary to what many people think, you're already insured against the possibility of a banking collapse. Currently, the government automatically covers up to £120,000 per eligible person, per bank, building society or credit union if a bank collapses (source).
If you decide to store money at home, most home insurance policies only cover cash losses between £300-£1,000 (this varies between providers). Anything above this figure is discounted and won't be covered under most insurance policies.
If you store cash in an insurance-approved safe that meets European standards EN 1143-1 (Eurograde) or EN 14450 (Security Levels S1/S2). These certifications essentially mean that the safes are officially recognised as meeting security standards, giving insurers a benchmark for assessing cover limits.
Where is The Best Place to Store & Hide Cash?
The best place to store cash at home is within an AiS-approved safe with an insurance rating relevant to the amount of cash you plan to keep. Most UK Insurance companies accept these safes as both a genuine and secure method of holding valuables within the home (so long as policy conditions are otherwise met).
Aside from events like house fires and floods, theft remains a top concern for UK homeowners, which is where the question of where a safe or a sum of money should be hidden. Here's where we recommend keeping your money safe:
Under the floorboards
Depending on the flooring and layout of your home, concealing your cash in an underfloor safe in an undetectable area of the property is a common technique. Locate a large area where you can squeeze a safe underground - getting in touch with a carpenter to further conceal the spot is also wise.
Behind a painting or a mirror
Not just seen in the movies - hiding your cash within a wall safe keeps your belongings completely out of sight. While it's a common hiding spot and shouldn’t be relied on alone, a high-security safe coupled with the concealment within your wall cavity offers far stronger protection.
Inside a cabinet
Cabinets are a popular hiding place for home safes, especially in homes with multiple cupboards and cabinets. Store your safe inside a cabinet and get a professional to anchor the safe onto it; this will prevent intruders from simply removing it.
Practical Reasons to Keep Cash at Home
Keeping a small lump of cash at home can be a practical way of preparing for potential situations where bank and card payments aren’t available. Whether it's for extra peace of mind that your children can access money in an emergency, or to give yourself a buffer when life throws unexpected situations at you, saved cash gives you flexibility when you need it most.
While the modern world is all about phone payments and digital transfers, there are still times when having physical cash makes a difference, whether that’s during a power outage, a banking issue or an unexpected expense. Knowing you have a stash of cash within the house somewhere comes with the benefit of having financial backup - money that can be relied upon outside of bills and everyday expenses.
What Are the Risks of Keeping Money at Home?
Keeping cash at home is a great backup plan for when things go wrong, emergencies arise, or technology/power fails. However, risks need to be thoroughly considered, including theft, loss or damage and insurance complications. For every year you store considerable amounts of money at home it loses value. Money in circulation isn't protected against inflation, whereas in a bank the value remains the same; and sometimes it even rises. Only by keeping your money in a secure financial institution can you protect what you own.
For more guidance on how to store money and which safes are best for this purpose, take a look at a few of our other blogs:
Protect Your Stash with a Cash Safe
If you're looking for a premium-grade safe to store money at home, you're in the right place. As the leading supplier of the toughest and most reliable safes in the UK, we stock some of the most reputable branded security solutions for homes and businesses. Browse the collection or get in touch for further advice.
