Anyone else still pay by cash?

Section62

https://forums.moneysavingexpert.com/discussion/comment/82025397#Comment_82025397

Any insurance company would rightly question why anyone would keep an insane amount of cash at home in the first place.

£20k isn't "insane". Granted, it is a lot more than many people have in total savings, but in real terms it isn't a vast amount. Compare, for example, the value some people might have at home in jewellery, or gold, or antiques, or coins, or artwork, or electronic gadgets.

(In case there are any burglars reading this, I don't personally have cash at home, I'd rather earn interest in a bank account or investments)

Let's not forget, it's a homeowners responsibility to declare the value of goods at their address at each insurance renewal.

I've never had an insurer tell me that was a responsibility I had.

I wonder how many home cash hoarders who are stuffing money away declare the amounts to their insurers on a regular basis? I would suggest none, because there then becomes a point when any insurer worth their salt would just refuse to insure significant amounts of money held at home on the basis that it's safer in a bank.

Insurers are more likely to have category limits on what they will cover, and it is probably more likely someone with a large cash holding at home (and wanting insurance cover for it) would need specialist insurance via a broker, rather than getting a bog standard policy via a comparison site.

Unless of course said home owner is prepared to install appropriate security and it is inspected by the insurer as suitable.

I've never heard of insurers carrying out 'security inspections'.

Caddyman

I think you'll find that when you renew your home insurance each year, you have to declare honestly what the contents of your home are. If you're not declaring significant amounts of cash, then you're not being honest. So with respect, the insurers are actually asking what it is that they are being asked to insure indirectly.

Of course insurers don't carry out inspections, it was a tongue in cheek comment.

You state that £20k in cash isn't an insane amount of money? I suggest for a lot of people with very little, it is. It is therefore very much an opinion on what amount is insane. For those that are hoarding large amounts of cash at home, and I humbly suggest that 20k is a large amount of cash for most, then clearly that is entirely their business, but I would suggest it isn't sensible. And of course, one would quite legitimately ask why they were hoarding that amount of cash at home.

Section62

https://forums.moneysavingexpert.com/discussion/comment/82025413#Comment_82025413

I think you'll find that when you renew your home insurance each year, you have to declare honestly what the contents of your home are. If you're not declaring significant amounts of cash, then you're not being honest. So with respect, the insurers are actually asking what it is that they are being asked to insure indirectly

The bit in bold is not the same as "it's a homeowners responsibility to declare the value of goods at their address at each insurance renewal"

The insurer typically asks a series of underwriting questions. One of which might be something like "Is more than £xxxx kept in the home in cash or cash-like form?" or a request for the amount of "Personal cash kept in the home". The proposer has an obligation to answer the questions acurately, but this isn't the same as an obligation to "declare honestly what the contents of your home are".

You state that £20k in cash isn't an insane amount of money? I suggest for a lot of people with very little, it is.

I acknowledged that in my previous post. If someone only has £100 in savings in total then they aren't likely to have £20k at home.

It is therefore very much an opinion on what amount is insane.

Really it is relative, opinions will vary. A millionaire may think nothing of £20k at home in case of emergency. Another millionaire might be shocked that anyone would keep more than pocket change anywhere other than a bank. Many people will have little hope of ever owning £20k of cash/savings. It doesn't make £20k (or any other amount) "insane" per se.

For those that are hoarding large amounts of cash at home, and I humbly suggest that 20k is a large amount of cash for most, then clearly that is entirely their business, but I would suggest it isn't sensible. And of course, one would quite legitimately ask why they were hoarding that amount of cash at home.

Legitimately? Unless the question is asked as part of an ongoing police or HMRC (etc) investigation, "one" has no legitimate grounds to require another person to explain why they keep a given amount of cash at home. It is simply not any of "ones" business, as you indicated in your preceding sentence.

Using the word "hoarding" is also somewhat prejudicial. For some people keeping £20k at home might represent a week's business takings, kept at home for security, rather than left overnight/weekends in an unattended business premises. Not everyone holding cash is a crook or tax evader.

Caddyman

It's very clear you and I have very different opinions and attitudes toward the topics discussed here and rather going around in circles all day long, I'll leave you with your own very robust analyses of what is sensible or otherwise. I'm done and out.

TheWoodler

Coming slightly late to this discussion, but I do like to have some cash on me - it’s useful for small businesses like local greengrocers and cafés or taxis who understandably want to minimise banking or card machine transaction fees. It isn’t necessarily ‘off the books’ in every case.

We also use cash for church collections, though offertory plates often have pre-set card machines these days! Cash is useful for tipping as well, and I try to use euros etc for cafés abroad too. Bus fares in eg rural France can still be in cash. Any cash left over goes to a local church/collection box for equivalent of RNLI or similar/tipping chambermaids, or saved for the next trip.

Scandinavia is pretty much cashless like the UK - or more so. I didn’t have any NOK, SEK or DKK on a recent cruise, as it was pointless having cash for cruise calls, but we called at Denmark on the day the entire Danish payment system went down. I wanted to visit a historic house but it was cash only in the circumstances. I noticed that the admission price list was in DKK and € - I had taken physical € with me just in case, as Denmark can accept the euro in tourist locations, though you’ll get change in DKK. That saved the day as I would’ve been very disappointed not to get in!

The local attractions and businesses must’ve lost out a lot that day as there were two cruise ships in town and they were all struggling without card access or physical DKK and only those able to flash DKK or € were able to pay. It was a shame for them, really, and it must’ve hit the local economy quite hard. It’s made me determined to keep up my ‘some cash on me’ habit at home and abroad, especially when out for leisure.

NevermoreIQuoth

I rarely use cash and have hardly ever used it for the last 20 years or so.

I am pretty much an online only shopper and find it much easier to manage my finances using the app or banking website, i hate having to carry around change or if someone wants to pay me for something i find it inconvenient to accept cash as i either have to go to the bank or post office to pay it in or find a shop where i want to spend cash. Also if i do buy stuff in a shop contactless with a card or phone is just so easy and less annoying epically if you need to find the correct change.

subjecttocontract

https://forums.moneysavingexpert.com/discussion/comment/82028534#Comment_82028534

Interesting.

Well the world is a diverse place and i guess we are all different.

Nasqueron

https://forums.moneysavingexpert.com/discussion/comment/82027955#Comment_82027955

As has been pointed out many times in this thread, it's a false economy, they see the upfront small fixed fee of card, they they don't see the ongoing cost of cash and how it's nearly always more expensive than card all in!

Section62

https://forums.moneysavingexpert.com/discussion/comment/82029094#Comment_82029094

It has been pointed out a lot, but that doesn't mean it is a universal truth. The cost of handling cash for a trader depends on their individual circumstances. Presumably this is allowed for in your "nearly always" - in which case it should be "often a false economy", or words to the effect.

Rob5342

They'll also be missing out on sales from the people that don't have enough cash. I limit what I spend in the fish and chip shop to the amount I've got from the cash machine and on many occasions I've gone elsewhere when somewhere hasn't accepted card at it was easier than going to get cash. I went to the theatre last year and they kept trying to sell programmes but virtually no one bought one as they didn't accept card.