Many Brits prefer keeping money at home than in banks

It has been reported that so many Brits are now losing faith in the British banking system that many of them have given up on putting their hard earned cash into banks and prefer, instead, to keep their money in their own homes, in places such as money boxes and safes, in drawers, and even under the mattress.

Since the onset of the global financial crisis the credibility of the banking system has taken a real knock, and many people now find themselves unable to trust banks. The lack of consumer confidence in the banking system is reflected in the number of people keeping money at home, and according to figures a huge number of Brits are collectively keeping around £7 billion around the home, not including the money that they carry in their purses or wallets.

Of the people that took part in the survey around 10 percent said that they preferred having control and possession of their own money rather than giving it over to a bank. However, many have simply decided not to bother putting their cash in banks because of the minimal returns that they receive on their savings, which has plummeted as a result of the rock bottom base rate, which stands at 0.5 percent.

However, one industry expert said: ‘Even though rates are currently low, those wishing to save money should always do so with a bank, building society or credit union which is covered by the FSA, the UK financial regulator. It is vital that savers know their money is protected up to the new limit of £85,000. By contrast, those deciding to keep money at home, whether as savings or for convenience, may not be covered by household insurance in instances such as burglary. Under new rules, if financial institution were to fail most customers will get their money in a few weeks, so there really is no need to stash it at home.’

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BIBA: Students should take out contents insurance

Students are advised that they should get their valuables covered while living away from home.

The British Insurance Brokers’ Association (BIBA) said that many students are not covered by their parents’ household insurance.

It warned that this leaves their valuables at risk, and while most students do not prioritise getting insurance, it is a sensible thing to do.

Graeme Trudgill, technical services manager for BIBA, said that a quarter of all parents do not have home contents cover at all, meaning that many students could find themselves spending a lot on replacing lost items.

He added: “A lot of students these days have laptops, iPods, digital cameras, DVDs, mobiles, stereos… and that can add up to a lot of money.”

Recent Home Office figures show that people under the age of 24 are more likely to be burgled and that as many as one in three students becomes a victim of crime.

Furthermore, the London Student Housing Guide found that the average cost of a burglary to a student is £900.

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