Keeping money at home is a habit. But we expose ourselves to prosecution for tax evasion if we exceed a certain amount.
Reasons for keeping money at home
Currently, we use less and less cash for our transactions. But the use of real money is not going away in the near future. Also, itsome people still keep it at home, under the mattress or in a chest. There are different reasons for this.
First, it’s a good way to protect your savings from potential banking fluctuations. Moreover, the money becomes more accessible when needed, unlike those in passbooks. Finally, it allows you to avoid paying certain state taxes. One thing is certain, the risks do not deter some people from keeping money at home.
Quite equivocal figures
In 2012, the total sum of cash kept in households in France amounted to 132.5 billion euros. But that’s nothing compared to the figures for 2020, which stand at 225 billion euros. In any case, people seem to be so convinced by this practice that they take many risks.
Indeed, according to Ouest France, nearly 34% of households keep cash at home. Yet they make this money very accessible to burglars. Moreover, approximately 490,000 households were the target of these burglaries in 2020. Keeping money at home is therefore very little recommended.
Keeping money at home: the maximum amount you can keep
Even if this practice has been around for centuries, the tax system does not allow as much freedom as before in relation to the amount. In effect, if you keep a large enough sum, it can be considered as tax evasion. Also, it is better to submit to the legislation in force, no matter how little confidence you have in banks.
Thus, you can keep money at home up to a ceiling of 10,000 euros according to the law. The choice is then yours, regarding the safety of your money. As a reminder, the money placed in a passbook is protected up to 100,000 euros in the event of bankruptcy or scams.