In a world that is increasingly digital, keeping a money safe box has never been more important. Most people avoid putting all their savings in banks because they need some cash for emergencies such as medical treatment and other urgent matters. However, this responsibility calls for safe storage of your money so that loss, theft or damage does not occur.
Reasons for Storing Cash
Some reasons why people store cash are:
Emergency Funds: Having cash for unexpected expenses like accidents or emergency repairs.
Avoiding Bank Fees: Some individuals prefer to have some extra cash to cover bank fees associated with accounts and transactions.
Privacy Concerns: Protecting one’s finances requires storing cash that can prevent anyone from intruding into a person’s life savings.
Having Enough Money Set Aside for an Emergency Situation
It is recommended that you keep enough money available in case of emergency. Depending on the particular circumstances, it may be necessary to allocate several hundred dollars that will be useful immediately. For example, experts often propose having $500-1000 in physical currency, which can come handy if you face a situation where electronic payment methods do not work.
Can you keep cash in a safe deposit box?
One way that is among the safest to keep your money in cash form is by putting it in a safe deposit box. This has many advantages:
Safety: Financial institutions and banks boast formidable security measures for safe deposit boxes like cameras and alarms that safeguard them.
Security: Safe deposit box access is restricted to those who have permission, ensuring both privacy and confidentiality for stored items.
Storing money in a safe deposit box guarantees a sense of assurance that it is secured by the bank’s security structure. It embraces continuous monitoring, advanced alarm systems as well as confined entrance for authorised persons only. Such level of protection may not be found in residential areas hence making safe deposit boxes the best option for custody purposes.
Does Everything Inside a Safe Deposit Box Have Insurance?
Though safe deposit boxes offer high levels of safety, contents are not automatically covered by insurance from the bank itself. You should check with your financial institution
It is advisable to contact your financial institution on their policies and consider extra coverage against valuables. Most banks have rules that limit their liability for safe deposit box property, so add-on insurance can be an added safety.
Holding Cash at Home
Advantages and Disadvantages
Storing cash at home has convenience and immediate access but it carries huge risks:
Advantages:
- Cash readily accessible any time there is a need.
- No reliance on stipulated banking hours or possible bank shutdowns.
- Total control over money without outside interference.
Disadvantages:
- Homes are easier to break into than bank vaults; therefore, more prone to theft.
- Typically home insurance policies do not cover large amounts of cash so you are left without cover if something happens.
Mitigating Risks When Storing Cash at Home
If you choose to store cash at home, there are several measures you can take to mitigate risks:
- Use a Home Safe: Investing in a high-quality, fireproof, and waterproof safe can provide added security. Ensure the safe is well-hidden and securely anchored to prevent theft.
- Diversify Storage Locations: Rather than keeping all your cash in one place, consider diversifying its storage in multiple secure locations within your home. This can reduce the risk of losing all your cash in a single event.
- Limit the Amount: Only keep a small amount of cash at home for immediate needs, and store the rest in a more secure location, such as a safe deposit box.
Safe Deposit Boxes versus Home Storage
In making a decision between a safe deposit box and home storage, the following factors should be considered:
Safety: As compared to home storage that is vulnerable to burglary and destruction, safe deposit boxes have a high level of security through bank-grade protection.
Availability: While cash at home can be accessed instantly in response to an emergency or on convenient times during business hours, this is not the case with a safety deposit box where the user will be forced to visit the vault.
Charges: On one hand, safe deposit boxes usually attract annual rental fees while on another hand, it’s only the initial cost of purchasing a safe that you would incur in your home.
Final Thoughts Regarding Keeping Cash
When choosing where to store your money, think about how secure and protected you want it to be. Safe deposit boxes are highly secured and secretive as opposed to keeping cash at home which though convenient can pose great danger. To find out which method works best for your cash storages needs balance accessibility against safety. Evaluate each method’s merits and demerits before selecting which one suits the individual most depending on their personal circumstances and preferences for the sake of securing savings. At Fortis Vaults, we can store your cash and more for things like gold bullions and jewellery. Contact our team to secure a safe deposit box today.
