Cash
Having a stash of cash in a safe deposit box might seem harmless but experts warn it isn’t really a good idea for several reasons. Firstly, in case of an emergency, you need to go to the bank to take out the money. If the bank is closed, tough luck.
Secondly, money sitting idly in a safe deposit box loses power over time because of inflation. Last but not least, certain banks do not allow the storage of cash in their safe deposit boxes. Pay attention to what the fine print of your agreement says in regard to the bank’s policy.
One other thing you should keep in mind is that the money you keep stashed away in your safe deposit box is not protected by the Federal Deposit Insurance Corporation. Therefore, in order for you to become the recipient of FDIC insurance, which can cover up to $250,000 per depositor per insured bank, you should deposit your cash into a checking account, savings account or CD.
