Why You Should Stash Cash at Home

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When the unexpected happens, it's always good to be prepared with some extra cash.

Many people no longer feel it's necessary to keep any significant amount of cash at home or in their wallet because it's just as easy to use credit cards at most establishments. If cash is needed, there are ATMs around virtually every corner.

Even though it can be quite easy to access money in these ways most of the time, there are still compelling reasons to store some extra cash under your mattress.

Here's a list of some events that would make you glad you had a bit of money at home. 

Bank Closures

The collapse of California Indymac Bank on Friday left many people unable to get into branches or perform online or phone banking transactions over the weekend, although ATM withdrawals were working.

The problem with banks shutting down and being taken over by the Federal Deposit Insurance Corporation isn't likely to stop there. This was already the fifth bank to fail this year and as of the end of March, the FDIC has been closely watching an additional 90 banking institutions on its "problem list." 

The FDIC guarantees traditional bank accounts up to $100,000 per person and IRAs up to $250,000.

If a bank fails, your money is insured if your account stays under these limits. Even when banks close, you should eventually have all the money in your bank account returned to you, but there may be a few days when you won't be able to access the money that is in the bank.