When my Mum was in her early 20s, she would put her cash and coins in a bamboo box to save them. That was her way of saving money before she had a bank account. She does have a bank account now, but she still keeps a safe at home. You just get to see that people store their money in all sorts of ways, and not everyone wants to have all their money in the bank.
If you want to know how to store your money without a bank, you’ve got a few options really, from keeping your cash in a secure home safe to a prepaid card or a digital wallet. The one you go for will obviously be down to how much money you’re storing, how easily you need to be able to access it, and how you want to go about protecting it from theft and damage.
Keep Your Cash in a Home Safe
A home safe is a good option if you’re looking to keep your cash in the vicinity but out of sight.
Choose a safe that’s difficult to remove and one that can be fixed to the wall or floor. Keep it in a private location and don’t tell too many people where you’ve got your money.
A safe can also be used to store important documents and small valuables. If at all possible, it’s worth getting one with fire and water protection, particularly if you live in an area prone to flooding.
A safe is only as secure as its installation and location. A small portable safe is easily taken by a thief.
Use a Lockable Cash Box
If all you’re after is a small amount of cash, then a lockable cash box will be sufficient.
You can use separate envelopes inside the box for different purposes, such as:
- Emergency expenses
- Household bills
- Planned purchases
- Short-term savings
A cash box is generally cheaper than a home safe but provides less security. Keep it in a secure location and don’t store large amounts of cash in it.
Be Careful About Hiding Cash Around the House
Hiding cash at home is a common habit, and on Reddit you’ll find people stashing it in a false bottom in a drawer, inside a towel or a mug, or in some other spot nobody would think to look. It works until the day you need the money and can’t remember where it went, so the hiding place matters less than whether you can still find it and whether the cash will be in good shape when you do.
Be very careful with any location that is subject to moisture, heat, or pests. Putting your cash in an air vent, for instance, could expose it to dust and temperature fluctuations. Putting it in furniture or other household items makes it hard to access when you actually need it.
Same with burying the cash. Some people will say just put it in a sealed container like a PVC pipe, but it’s still vulnerable to the elements (moisture, damage, etc.) and can still be found. You could also end up completely forgetting where you buried it.
I’ve been there myself. When I was a teenager, I tucked some cash between my phone and its case and forgot about it completely, and I only discovered it much later by accident. Another time, I put some cash into a few books I didn’t use, and I didn’t find it until years later, when I went through them before donating them.
These stories illustrate that a hiding place which seems perfectly good today may well cause you problems down the line. Someone might find the money, you might simply forget where you put it, or you might quite innocently lose it in a clean.
If you’re keeping your cash at home, then you want a safe, dry, and accessible location. You’ll need to keep a private record of where it’s being held so that you don’t lose track of it.
Consider a Prepaid Card
A prepaid card is one that you can load up with money and then use to make purchases. You can get a prepaid card even if you don’t have a bank account. Each card operates in a slightly different way so it’s important to read the terms and conditions from the company before you go and buy one.
Prepaid cards are helpful if you want to save money for something specific, like food or a holiday, and prefer not to carry cash with you.
For instance, you could put $150 on a prepaid card and use it for groceries or bus rides, etc. That way you won’t be spending that money by accident.
Before you get a prepaid card, check whether there are any fees, any limits, and whether there are any rules about getting your money back if you lose the card.
Keep Some Money in a Digital Wallet
If you’re looking to avoid the traditional bank account, then a digital wallet may be worth looking at.
Depending on the provider and your country, you may be able to store funds, receive payments and make purchases via the app.
Before you go and use one, check whether you actually need a bank account to register, what the fees are, and how you’d recover your account if you lost your phone.
A digital wallet is handy, but it’s not in itself a bank account. Check the provider’s terms and the level of protection that applies to your balance before you put any significant amount in one.
Look Into a Credit Union or Cooperative
If you don’t want to go down the conventional bank route, you can look around for a credit union or a co-op in your area.
Credit unions and co-ops are places where people come together to save money and get other money services. They can have savings accounts that you can use.
Ask what you need to get in, and make sure the place is safe and compliant with the rules before you put any money in it.
Consider a Safe-Deposit Box for Valuables
A safe deposit box can be useful for important documents, jewelry and other valuables that you don’t need to access all the time.
It’s not always a suitable place for emergency cash, though. Access is dependent on the institution’s opening hours, the fees involved, and the rules of the box. Some boxes will have restrictions as to what you can put in them.
Check the terms very carefully before you go for one. If you’re in a position where you need the cash right away in an emergency, then cash held securely at home may well be the most accessible option.
Keep a Small Emergency Cash Reserve
Cash can be handy when you can’t get to an ATM, your phone dies, or when you simply can’t use any of the electronic payment methods.
You can keep a small amount at home for unforeseen expenses (transportation, food, medication etc.).
Choose an amount based on your normal expenditure and what you can realistically set aside. Keep it separate from your regular spending money so that you’re less likely to just dip into it for something you don’t need.
You don’t need to have all your savings in cash to be prepared for emergencies.
How to Save Money Without Touching It
Saving money is not simply about where you put it. You also need a simple plan so that you don’t spend it by accident.
Here are some easy tips:
- Set a savings target. Work out how much you want to save and what the money is for.
- Separate your savings from your spending money. Use different envelopes or containers for each.
- Save as soon as you get paid. Allocate a set amount before spending on any optional purchases.
- Track your progress. Record how much you’ve saved and keep the total updated.
- Make access less convenient. Keep your savings in a safe place rather than in your wallet.
If you’re after some help in sorting your income and your expenses, then have a read of this guide on how to organize your finances.
How to Store Money Online Without a Bank Account
If you’re looking at an online money storage service, then look for one that allows you to hold a balance without having to link a traditional bank account.
Depending on where you live, it may be a digital wallet or a prepaid account. Some services will allow you to top up via cash-in points; others will require a card or bank transfer.
Before you sign up, check the provider’s fees, their withdrawal options, account limits, and security. Find out what happens to your balance if your account gets suspended or the service itself shuts down.
Don’t keep all your savings in one online service. You can have your access cut off through a technical fault, an account review or a change to the provider’s terms.
What are the risks of keeping your money outside the bank?
Having your money outside the bank gives you control over where it is held, but of course there are risks involved.
On smaller screens, swipe left or right to see the full table.
Cash kept at home doesn’t earn any interest and is subject to inflation (i.e., it can lose value as prices go up). It’s also not easy to get back if it’s stolen or lost.
Consider these risks before you go down the route of hoarding large amounts of cash in one place.
How to Keep Track of Money Stored Outside a Bank
You don’t need a complicated system to manage your savings.
A notebook or indeed a simple spreadsheet will do to record how much you have and where it’s held.
Include these details:
- The amount you saved
- The date you added or removed money
- The purpose of the savings
- Where the money is kept
For instance, if you’re putting $20 into your emergency cash reserve each week, then record each deposit. That way it’s easy to check your progress, and you’ll spot if any of the money’s gone missing.
Keep your record private. You don’t want to end up with no idea where your savings are without having made it ridiculously easy for someone else to find.
Is it safe to just keep all your money at home?
Keeping all your savings at home is a recipe for disaster in terms of exposure to theft, fire, flood and all the other perils that can befall a property. A modest emergency cash pot is of course useful, but you need to think about the risks before you go down the route of keeping large amounts of cash at home.
Choose a Storage Method That Works for You
You can store your money without a bank in a number of ways, from keeping your cash in a safe at home to using a digital wallet. Each option has its own costs, risks, and access requirements.
My Mum’s approach was to put cash and coins into bamboo. She still has a safe today even though she has a bank account. You might find that one method is the one that works best for you, or that a mixture of methods is the way to go.
Whatever you decide to do, keep your money safe, keep track of your savings, and don’t put more cash in one place than you can afford to lose.
