New research conducted by GoCompare Home Insurance, the financial services
comparison website, has revealed that 80% of people claimed to store
emergency cash at home, totalling around £7.7bn.
Whilst GoCompare found that a majority of respondents said that they keep less than £100 at home, one in ten stashed between £200 and £500 and 4% kept over £500 in case of an emergency. As a result of this, the average amount of cash held in the home is currently £187, a total of some £7.7bn nationwide.
The research found that recent financial IT failures, such as that from TSB and Visa, have prompted more people to keep cash at home, as 30% of people claimed to be worried about bank security. Almost 20% of respondents said that they wanted to rely less on bank and credit cards and so have reverted to using cash more frequently.
Furthermore, the question illustrated that 4% of Brits really do stash their cash under their mattress, with other popular hiding spots including; a home safe (36%), a drawer or cupboard (31%), a tin (18%), under floorboards (6%), in a book or CD case (4%), in the loft and either in the garage or garden shed, both at 2%.
Recent online banking failures have clearly left many consumers worried about their reliance on technology and card payments. So perhaps it should come as no surprise that more people are now choosing to use cash more frequently and store sums at home to tide them over any future problems. But if you decide to keep a reasonable amount of cash at home, check your home insurance to make sure you have the cover you need. Additionally, think that this money may also lose value over time due to inflation. Don’t store your money in places where it can easily be lost or damaged. Keep it in a safe place, ideally in a secure, fire and water proof container such as a home safe – and preferably not under the mattress or the bath!
Please note that this information is for guidance only and does not constitute personal advice. Brunsdon is not responsible for the content of external web sites.