You have opted to save money in the house which maybe one reason or the other which made you to decide to do so.

Nothing is bad if you decided to save money at home, like those of us whose method is the piggy bank, but many a time it comes with huge disadvantage. There are a vast number of people who opted not to save money in the bank especially in the developing countries, with majority of them not being educated.

I’ve also seen some educated people too who came up with one excuse or the other being the reason that they don’t want to save money in the bank. And you my reader, also want to do the same too but first i want you to know the advantage and disadvantage of saving money at home before you can do that.

Advantages of saving money at home

1. Readily Avaliable

The very first reason people save money at home, money always avaliable to the person at any given time. Even though through atm card money is made avaliable at any time, some people argued that it is not always the case. Saving money at home will make it readily available for their needs or unforseen circumstance.

2. Bank Fraud/Insecurity

Another major reason people opt to save money at home. We have bank fraud or insecurity in the banking industry and i’ve witnessed it (bank fraud) once. Imagine you having 6 million in an account which may be dormant for 5 years and later checking on the account to realize that 4 million have been deducted from the account. I’ve seen this happened with the bank customer suing the bank for fraud and manipulation. Please note that this is not common but in few cases especially if the account is dormant for years, bank workers (fraudulent bankers) tends to tamper with the money in the account.

3. Avoiding Difficult Bank Process

If you save money at home you don’t have anything to do with the bank which includes their difficult or complicated account opening process. If you don’t have all the requirement need to open an account, you cannot open an account in the bank. Whereas some people sees that as a waste of their precious time especially the uneducated ones.

Disadvantages of Saving money at home

1. Money not 100% secured

If you have decided not to save money in the bank but rather at home, be rest assured that you will loose lots of money one one day. First question you should ask yourself is that how secured is your home, do you you have kids or relatives who steals anything at reach. If you are clear of these questions then you can go ahead and keep money at home.

2. No Interest Rate

If you opt to save money at home instead of a bank, then you there will be no interest rate as to someone saving money in the bank. Let’s say you have up to one million in your house and another person have one million in the bank, every month the person saving money in the bank have a huge benefit from interest and you that saved yours at home will get nothing, if inflation comes the money becomes worthless.

3. Money Not Insured

In case your money got burnt or destroyed, there will be no insurance covering it. Though in terms of fire incident, many that do save in their home have fireproof that do protect their cash during fire incident.

Robbers may break your home and carter away your money, that is just as good as gone with all your savings.

4. Difficulty on Money Transfer

You saved your money at home and when the need to transfer money to someone arises, making transfer will not be easy for you like someone who have a bank account. First is that you will have to go to the bank to make the transfer but if you have money in the bank, you will can do it through online or offline money transfer.

5. You are not Entitled to Online Payment

Banking is made easy thanks to the modern technology which you can make payment or transfer money from home. Then how can you do that, is by creating a bank account with a bank in your country and have a cash in it. Right now you can make payment through your bank, payment like clothing, food, TV cable, housing etc right in your comfort zone without heading to the bank.

In the case that you don’t have money in your bank account but rather in your home you can’t enjoy these benefits of the modern banking. You can’t even make online payment to another country or in your region too.