How Much Money Can You Legally Keep At Home?

How much money can you keep at home legally? This has been a commonly asked question. This article provides you with the answer you’ve been looking for.

Legally, you can keep as much money as you would want at home. It is more of your preference, as there is no prosecution for having excess money in your house.

However, you have to declare the source of your money in the income tax returns. This is to ensure that you acquired the cash legally.

If you choose to keep your cash at home, it is key that you know how to safeguard your money. Keeping cash at home can be very dangerous, especially losing it to thieves or natural calamities like fire and floods.

In other situations, keeping cash at home can be beneficial. Below are the pros and cons of keeping cash at home to guide you on your decision.

Advantages of Keeping Cash at Home

There are several reasons you’d want to have your cash close to you.

You can have access to any amount at any time.

With banks, they have a limit to the maximum you can withdraw in a day. The maximum withdrawal from an ATM varies with each bank, while from a bank; you can withdraw your entire bank savings.

It is a tedious and long process. With cash in your house, you can have any amount with ease anytime in case of anything.

Bank closure

In several instances, the government has closed banks because of bankruptcy. Obviously, banks have your money insured but only a certain amount.

The standard insured amount for every bank client in the United States is USD 250,000. If you’d want to protect your money, you can disperse your money into different accounts according to the bank’s insurance.

Moreover, banks may close due to natural disasters such as war, tornados, and earthquakes. A bad economy can also lead to banks shutting down.

Such situations can deny you access to your money when you are in need of it. You can never tell when such situations will occur; having money close can save you a lot of stress.

Saves you on bank costs

Putting money in a bank comes with costs such as maintenance and withdrawal costs.

Such costs take up some of your money, something which you can avoid if you have your money kept in at home.

Saves time and energy

Having your money in a bank will mean each time you need money, you need to go to the bank or ATM, unlike for home kept cash which you have quick access to.

At the bank or ATM, you may find a long queue; hence if it were urgent money, it would be a bit inconvenient.

Your Money is still safe during an electronic meltdown

Banks operate using electronic data. In case of an electronic meltdown that leads to the destruction of electric files, your money remains safe in the house.

Disadvantages of keeping money in your house

You lose out on Interest

Though minimal, having your money in an account will yield interest.

In this challenging economy, you can’t disregard any amount of money. If you choose to keep your money at home, you lose this chance.

No insurance

If you lose your money, there is no way to recover from the loss. This is different if you had your money in a bank where you can recover a certain insured amount.

You stand the risk of attracting thieves

If word leaks that you keep your money in the house, you become an easy target for thieves. It is better to keep it secret in hidden secure places.

You can’t use your ATM or Checking Accounts

For large purchases, it is customary to pay using an ATM or checking accounts.

If you keep all your money in the house, you will have to walk carrying around large amounts of money, which is very risky. Also, some sellers do not accept cash.

It also makes it impossible to make online purchases as you need to connect to a bank account. To avoid such situations, you can choose to have money both in the bank and the house.

Where to keep your money in the house

  • A heavy-duty safe fixed on the wall or floor so that it is not only unnoticeable but also difficult to open.
  • A diversion safe so that one cannot suspect it to be safe.
  • Hide it in an unnoticeable hole dug somewhere in your house or backyard and any other place you may find best.

You can use a waterproof, fire-resistant safe placed on a floor or wall that is not portable for large amounts of money. You can also hide the safe in the attic as thieves cannot easily access it.

Tips to keep your money safe at home

  • Keep it a secret. Your money is safer when fewer people know about it. You can let your trusted spouse or an adult child know about it in case of anything.
  • Keep it in places where no one least expects it. Common places like mattresses and behind picture frames make it easier for thieves to locate your money.
  • Hide your money in different locations. In case something happens and you lose money hidden in one place, you still have a backup. Also, no one will notice if you have several places you get your money.


To wrap up, you can keep as much cash as possible in your house. It is advisable to keep money both in your bank and at home.

So it’s a win-win as you get to enjoy the benefits from both ends. However, refrain from keeping large amounts of money in the house, especially for security purposes. Just a few dollars will do for emergency purposes.