Victoria Cleland, a chief cashier at the Bank of England said this week that UK households turned to cash during the pandemic and for budgeting in the subsequent cost of living crisis.
That’s why she keeps about £200 in banknotes for emergencies – some stuffed in her underwear drawer and the rest in a book.
“Recent examples demonstrating our systems are vulnerable include cyber attacks on M&S, the Co-op, and Harrods.
Certain people know where the cash is, she said, but she isn’t worried about losing it in unfortunate events like burglaries, house fires, or even misplacing it.
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“You could always check your insurance policy for its cash limits and provide some proof that you had the cash, albeit being actually difficult to prove.”
It comes as the Bank of England revealed the rising number of British banknotes in circulation, suggesting households are in fact hoarding cash as they’re worried about the future.
It helps to explain why the number of notes in circulation has jumped by 23 per cent since before the pandemic at a time when the volume of cash transactions has “gone down significantly,” she said in a fireside chat at the Cash in the UK conference.
‘My father and grandfather always kept thousands hidden away for emergencies’
The 29-year-old said her father and her grandfather would have between £5,000 and £10,000 hidden away at any one time.
Emily, who works in PR, said: “They didn’t want to be over reliant on one source. They thought it was better to have money spread around, including some in physical form in case you can’t get to the bank or access your money.”
He lives alone but he did tell his close family in case anything ever happened to him, she said.
She added: “He kept it a secret as I believe he wanted to treat it as an emergency fund that he didn’t need to worry anyone else with but would know it was there should an emergency happen, or he needed it to make a bigger purchase.
Emily said she plans to take the approach of her grandfather and father – having her money spread across bank accounts, investment pots, and some in cash for maximum security and peace of mind.
They both used numerous savings accounts, bought premium bonds, ISAs and other types of investments throughout their lifetimes.
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