#4 Cash
When most people think of a bank safe, they envision the iconic image from a movie. The safe’s massive metal door swings open to reveal a room filled with stacks of cash. That image may be alluring for Hollywood, but it is not applicable to ordinary, everyday life. Although safe deposit boxes may be safe, they shouldn’t be compared to the bank vaults that are frequently seen in movies.
But is it a good idea to store money in a safe deposit box? We can give you a few arguments against doing that.Â
The first and most obvious reason to avoid keeping cash in a safe deposit box is that you won’t have access to it if there is an emergency and you need the money right away and the bank is closed.
Secondly, as a result of inflation, idle cash gradually loses purchasing power. Put the cash in a certificate of deposit or an account that pays interest instead.
Also, cash storage in safe deposit boxes is specifically prohibited by several banks. Read the contract’s fine print.
