Don't Stash Your Cash at Home
Chances are, you or someone you know is probably a little leery of the financial system. In fact, they may even be using their home as their own personal bank vault. While most consumers are using financial institutions for their savings, some people do not trust the financial system with their hard-earned cash.
According to a 2017 Consumer Financial Literacy Survey, 29% of consumers are stashing cash outside of financial institutions, and of those people, 53% are hiding it in a secret location. These locations may include: under the mattress, in a safe, or even buried in the yard! To some, this may seem safer, but in reality, it is not.
Hiding money in your home may sound tempting to some, but it actually poses a larger risk to consumers than it does depositing it to a financial institution.
Why you should not stash large amounts of cash at home:
- It could be stolen or destroyed – In the event of a robbery or natural disaster (fire, etc.), homeowners insurance provides limited protection (usually a dollar amount limit for cash) depending on your policy.
- You could forget where you hid it – Or worse, someone could be unaware of its existence. In 2009, a woman surprised her mother with a new mattress and threw out the old one. The old mattress held a hidden $1 million dollars of her mother’s life savings inside of it. Ouch.
- You are missing out on interest accrual -- Zero funds in the bank means 0% interest earned. Consider taking advantage of our Money Market Checking (minimum balance of $10,000), CAMPUS Savings Accounts (no minimum balance), Certificates and IRAs, or a Kids Savings Account (for savers 16 years old and younger). To learn more about the ways to save with CAMPUS, check out our Personal Banking products.
- You are losing purchasing power due to inflation – By not placing your funds in an interest-bearing account, you are losing money. Thus, reducing your purchasing power when prices increase.
- You could be investing – Sure, when you invest, you are accepting some risks; however, the return you could potentially gain can make it all worth it.
And the best part is, The NCUA insures up to $250,000! No member of a federally insured credit union has ever lost a penny from accounts insured by the NCUA. This insurance covers regular shares, share drafts, money market accounts, and share certificates.
So, the next time you’re considering whether or not the freezer would be a good location to hide your dough, think twice! Don’t allow yourself or a loved one to lose their life savings or miss out on tremendous benefits that a financial institution can offer.
Empty your mattress!
By Campus USA at 18 Apr 2017, 14:41 PM