Having a few pounds around the house can be useful for small unexpected payments, like a takeaway or the window cleaner, but how much have you got tucked away? If your money is doing nothing, could it be doing more for you?
Biscuit tins, bedside drawers and envelopes in cupboards are where people often keep their cash at home. In fact, there was a story at the end of last year of people clearing the house of a deceased relative and disposing of boxes at a Somerset recycling centre. Staff there spotted that £15,000 had been hidden away and the money was returned to the surprised relatives.
Whilst it's handy to have some money readily available, if you've got too much sitting at home, it could be doing more for you than it is right now.
The same goes for money in a current account. It's great to have cash available for unforeseen circumstances, but if you've got more than you need in there, you may want to look at different types of savings accounts, such as notice accounts, fixed rate ISAs and fixed term savings accounts.
If you're going to put your spare money - or money that's sitting into a current account - into a savings account, you'll be reassured by knowing that cash deposited into UK banks or building societies that are authorised by the Prudential Regulation Authority is protected by the Financial Services Compensation Scheme (FSCS). This means that with the FSCS savings protection limit of £85,000 (or £170,000 for joint accounts) per authorised firm, your savings will be protected.
Having your money in a savings account will not only keep it safe, but you'll also be able to see your savings grow over time.
That's more than it would be doing at home in a box. And with your money in a bank, there's no risk of it being thrown away at a recycling centre.