Negative interest rates on savings accounts, a war in Ukraine and an ongoing pandemic. These are uncertain times. For a little more security, there are some that store a lot of money under the mattress or in an old sock. But is it really that wise?
“It gives some people a safe feeling to have a buffer of cash on hand,” says money coach Lisa Verdegaal. If there is ever a mistake in the bank, you can always pay for the groceries.
But keep really large sums – such as a few thousand euros – at home? No, the money coach does not recommend it. “Money is safest in the bank.” For example, cash can be lost, they can be stolen, lost in a fire or simply forgotten. “I know a story where a man threw away his old shoebox. “It contained thousands of euros in bills, but unfortunately he remembered it too late.”
When there is money in the bank, you know exactly how much you have and where to find them. You will notice another benefit when making your tax return. A large part has already been filled. This is because the bank has already passed on the necessary information to the tax authorities. “This means that you do not have to calculate most of your tax return yourself,” says the money coach.
The tax return becomes a lot more complicated if you have a lot of cash at home. That it is not in a bank account does not mean that the tax authorities tolerate it. At least up to 560 euros you are safe as a single person. For example, if you have 500 euros in your house, you do not have to give this up. “For people with a tax partner, this limit is 1120 euros. Tax would like to know all the money over it,” says the money coach. This reporting obligation also applies to gift cards and other securities, such as stocks and bonds.
There are insurances that reimburse a maximum of 1500 euros. The other insurances do not pay out or are below this amount
The insurance does not cover everything in case of theft or fire
Amanda Bulthuis from Geld.nl also does not think it is wise to keep large sums of money in cash at home. “It is only minimally covered by the contents insurance. If you lose it by fire or theft, you have really lost it. ” An insurance company assumes that you do not have that much money at home.
But in some cases, a small portion of the money is refunded. Michel Ypma, insurance specialist at Independer, explains that the compensation varies from insurance policy. “There are insurances that reimburse a maximum of 1500 euros. The other insurances do not pay out or are below this amount. It’s different from politics to. “
And there’s another chin. For example, it is not smart to keep the money in the garage. “This is perceived by many insurance companies as an unsafe place.” If the money disappears here, they will not be refunded. In addition, you need to take into account that securities, such as stocks, also fall under cash. The same goes for passports and identity cards. “The 1500 euros that the insurance company reimburses is a sum of all your cash,” explains Ypma. So assume: your wallet is stolen with your ID card in. In that case, this loss is also covered by the insurance allowance.
What is the best thing to do with cash?
So if something happens to your cash, you will lose most of it. ,, If you do not want it in the bank, you can also rent a safe. Then the money is safe, but it will cost you 300 euros a year, “says Verdegaal. And those who do not want to pay negative interest rate, it is wise to distribute the money in different accounts. The interest rate starts ‘only’ from 100,000 euros.
There are also other options for spending your money, says Bulthuis: “For example, make your house more sustainable. This not only increases the value of your home. It also saves a lot of money if you look at the sky-high energy costs.” You can also put the money in a savings deposit, invest or help your children with their first home. ,, But make sure you always have a buffer that is in a bank account. You will have easy access to your money if your washing machine suddenly breaks down and you obviously want to pay your bills. “
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