With all of the bank failures and stock market instability, you may be tempted to withdraw your money and hide it at home. Theoretically, it does sound like a brilliant idea. You hide your money in your house somewhere, you know it’s going to be there when you need it. There is no reason to worry because of a hiccup with the stock market. The problem is that keeping money in your home may well be the worst thing you can do. Here are some reasons why saving money in banks is good.
You can quickly and easily get the money. For example, using direct deposit of your paychecks allows you to access your money quicker, as funds that are deposited electronically are available earlier than when you deposit a check.
With Automated Teller Machines (ATMs), you can access your money quickly too. Many ATMs are usually open 24 hours a day, seven days a week. You can also use the ATM or debit card from your bank to make transactions, instead of cash.
In the case of a robbery, you have all kinds of security and protection at the bank. There’s no point of being the hero at the bank, protecting all the money. And in the event of having a few thousand dollars stashed away in the cookie jar, and probably there is a robbery (or fire), you might be tempted to do something dumb!
Short Term Savings
You will easily make money for holidays, down payments or costly products that you foresee buying soon. You can save up easily via your bank in a savings account, and then withdraw the cash directly when the time comes. It is the way to go for short-term savings.
One significant advantage of saving your money at the bank or a credit union is that your savings are insured federally by the FDIC or the NCUA. You can check for more information on Norskeanmeldelser or go to Bunq directly.
You May Forget Where You’d Put It
The awful thing about hiding spots is their being a perfect hiding spot. If it is where you least expect it, you’ll probably lose it, and never find it! Indeed, you might even forget that you first hid it in your house, meaning you’ll never know how to go looking for it.
Someone Could Replace Your (Hiding Spot) Mattress as A Surprise Gift
Happy Anniversary! I just switched your old mattress, where I didn’t know you were keeping thousands of dollars with a brand new one! Isn’t that cool? It happened to a woman in Israel before you think that sounds too absurd.
Your Dog Could Have Eaten It!
If you thought the story about the mattress was outrageous, how about one where a dog ate $800 cash from a woman’s purse? Yeah, eight hundred pennies “Unfortunately” the money is not being digested, and she was able to recover most of it. So don’t hide your cash in your house!
You Are Not Gaining Any Interest, and Your Savings Will Be Eaten Up By Inflation
The number one reason you shouldn’t hide money in your house is that you’re not making any interest on it.