How to keep money safe at home

Whatever your reason for keeping cash in your home, it’s important that it remains safe. This guide covers practical tips and insights on the best ways to secure your money at home.

Many people keep cash at home. However, if you choose to keep a considerable amount at home, even for a couple days, it’s important to choose a protected place that keeps theft, fire or flood damage in mind. Here we offer tips on how to best protect your money at home.

Where to store money at home

While it’s generally advisable to keep large sums in a bank or building society, some situations call for keeping cash at home. For example, those who are less able or find it difficult to travel may opt to keep money physically close.

In such cases, it’s important to note the risks involved and identify sensible storage options. Risks include theft, fire and flood damage or the money losing value over time since you’re not earning any interest on it.

For significant amounts of money (£100 or more), secure options include locked drawers, a lockable bureau or a secure filing cabinet. If you also have other valuable items such as jewellery, watches or official documentation that needs to be kept secure, investing in a good-quality safe is a wise choice.

A safe’s cash rating indicates its level of security and whether it can protect your valuables from fire and water damage. The higher a safe’s cash rating, the better quality of protection the safe will offer, which means an insurance company will be willing to cover higher amounts of cash kept inside. Ratings are determined by the thickness of the safe walls, how many locks are included, as well as the quality of those locks.  

For smaller amounts, a safe may not be necessary. However, it’s still important to find a sensible and secure storage location. Fireproof lock boxes should also be considered for small amounts of cash and keys to cars.

According to home security expert Jonathan Pass, some of the best places to keep small amounts of cash in the home include:

●      The attic – usually a good place to keep money safe as it is difficult for burglars to access and unlikely to flood.

●      Inside books and DVD cases – although it may sound a cliché, storing small amounts of money inside books or DVD cases within a larger collection can be inconspicuous and secure.

How much money can you keep at home legally?

At the time of writing there was no legal limit on how much money you can keep in your home. However, the impracticality of keeping large amounts of money safe and secure may outweigh the perceived benefits.

Does home insurance cover cash?

Most home insurance policies cover cash as part of your contents cover, although there are coverage limits. In the event of theft, fire or water damage, you may need to provide evidence of the stored amount, the reason for storing it and its location within your home. Your insurance provider will assess the claim based on policy limits and any potential negligence.

In most cases, money you keep at home in a locked place is safe and covered by your insurance.

For more advice on protecting the things you care about, make sure you check out the rest of Age Co's Useful Articles.