We live in a time where digital fraud is at an all-time high. With banking outages becoming more frequent, many people are reconsidering keeping their cash at home.
In fact, the Bank of England has recently seen an increase in banknotes circulating despite fewer cash transactions, as households build safety nets amid economic uncertainty and recent cyberattacks on businesses.
Keeping a small amount of cash at home, like a few hundred pounds, can be useful for emergencies however for safety purposes, it’s generally advised to keep larger sums in a bank for security.
Most of us have no idea how much is actually safe to store at home, but finance expert Fred Harrington, CEO of Proxy Coupons, a platform specialising in online deals and digital privacy solutions, has just the answer.
So what is the magic number? Harrington recommends keeping enough cash to cover 3-5 days of essential expenses. For most families, this translates to roughly £200-£400, depending on household size and local costs.
“Think about what you’d actually need if the power went out for a week or if banking systems went down,” says Harrington. “You need petrol money, groceries, maybe cash for a pharmacy or urgent repairs. You’re not funding a holiday.”
The amount should be enough to cover basics like food, fuel, transportation, and any medications that can’t wait. It’s enough to handle genuine emergencies without creating a tempting target for thieves or raising red flags with authorities.
A reason for this amount has a lot to do with insurance policies. Most standard home contents insurance policies only cover £200-£500 in cash losses, so that expensive safe filled with £10,000? You might only be reimbursed a few hundred back if it’s stolen.
“People usually assume their home insurance covers everything equally, but cash gets treated like loose change,” explained Harrington.
When keeping cash in your home, be sure to hide it well. He warned against using the most obvious hiding spots that burglars check first. “Skip the mattress, freezer, and jewellery box.” Try less obvious spots that blend into your normal household items: A sealed plastic bag taped inside an old appliance manual,” for example.
“Burglars spend maybe 10 minutes in your house,” notes Harrington. “They hit the obvious spots and move on. The goal is to make your cash boring and invisible.”
Beyond theft, excessive cash storage creates multiple headaches. Fire and flood don’t discriminate – they’ll destroy cash just as easily as anything else in your home. Unlike bank deposits, there’s no FSCS protection for cash under your floorboards.
Larger amounts can also trigger questions from law enforcement or HMRC, so keep this in mind when you’re withdrawing the amount.
“The government doesn’t care if you prefer cash, but they do care if you can’t explain where it came from,” warns Harrington. “Keep receipts and records for any significant amounts you store at home.”
