As of: April 8, 2024, 7:00 a.m
By: Marco Blanco Ucles
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Many people like to keep some cash in their own four walls. But is this punishable – and if so, at what amount?
Keeping some cash – the much-quoted emergency fund – at home is certainly not a bad idea. However, many people store larger amounts of money in their own four walls - for example in a safe. However, there are other places where it's smart to hide your money. According to a survey by the
Deutsche
Bundesbank
, the most common reason people give is that there is hardly any interest on savings at banks. Another point: Cash is always permitted as a means of payment, while technical problems can occur with debit or credit cards.
Storing lots of cash under your pillow at home – is that even legal? © Westend61/IMAGO
The most important information first: There is no law that makes it a criminal offense to have too much cash at home. So you don't have to worry about being prosecuted for this - on the contrary: keeping some cash at home is even recommended. The
Federal Office for Civil Protection and Disaster Relief
recommends keeping a sum at home that will last you for around a week. The reason for this is that in the event of a power outage, the ATMs would also not work.
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Low interest rates from banks and no fears of criminal prosecution. Why shouldn't you just hoard your entire savings in your own four walls? It's simple: In the event of theft or fire, most household contents insurance policies only cover a sum between 1,500 and 2,000 euros, warns
Auxmoney
. So the rest of your savings would simply be gone.
You often read about rumors that the legal limit for cash at home is 10,000 euros - as already explained, this is wrong. The amount still plays an important role when it comes to cash. When you deposit money into your bank account. There is an upper limit of 10,000 euros. If you want to deposit more, you have to prove where the money comes from. Otherwise the public prosecutor will get involved. This is how money laundering should be combated.