It’s wise to keep some spare cash for a rainy day and you may be hiding more money around the house than you think.
For every Australian, there are 10 $100 notes in circulation. But when it comes to the seemingly more common $20 note, just seven exist for each citizen.
Former Reserve Bank of Australia official Peter Mair revealed the $100 notes may seem rarer because they’re the ones pensioners are hiding away, especially if they want to qualify for means-tested pensions. When the new $100 note was released in 1996, retirees were also withdrawing large quantities of the new notes, said Mair.
For younger folk, stashing money at home might be a way of keeping the bank from robbing your savings. For others, it could be as simple as the trusty moneybox being their way to budget for Christmas.
You can still get financially ahead without prying up the floorboards and digging through your garden, but there will always be those who insist their money is better kept closer.
Best hiding places
You are still going to want to keep your money safe, even if it’s in the walls of your home. That could mean a fire-resistant safe for cash, important papers and documents. If opting for a safe, go for a large model or something bolted to the floor to stop opportunistic thieves carrying off with your savings.
However, there have been instances where hiding money “inside the walls of their home” is taken a little too literally. One case in the US saw workmen fixing a broken water pipe discover almost $1 million stashed behind the façade of a wall.
Related: How to hide money from your partner
Helping you hide your savings
Believe it or not, some companies actually supply the demand of those wanting money-stashing solutions within their own home. Some ready-to-buy solutions include fake air vents, false drains and mock electrical wall sockets. Some companies cater to people who want to hide their savings in plain sight. Fake soft drink cans, shaving cream, food jars, hollowed-out books, landscaping rocks and scented candles are all on offer.
Banking still the best bet?
Experts agree that some emergency money on hand around the house can be a good idea in case of a disaster or power outage. However, those with large stashes could be missing out on great capital gains from investment accounts or high interest savings accounts.
For instance the ING Savings Maximser account is free to open and free to own, and they'll pay you up to 4.35% p.a. into your account on a monthly basis.
There will always be those suspicious of new technology and happier keeping their savings at arm’s length. However, their funds could be dwindling in the long term because as inflation rises the hidden cash is ultimately worth less with each passing year.
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