Published
Because of RussiaBanks now recommend keeping cash reserves at home
A nest egg for emergencies: Dutch banks want to raise awareness among the population. There is similar advice from the federal government.
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Cash at home: That's what it's all about
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For the first time, Dutch banks recommend having cash in the house.
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The population should prepare for geopolitical threats.
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In Switzerland, the federal government recommends having enough cash available to cover a weekly shop.
Since the war between Russia and Ukraine, the European desire for everlasting peace seems to be receding into the distance. The German Defense Minister Boris Pistorius has already called for military readiness. Now the Dutch Defense Minister Ruben Brekelmans called for people to prepare for all possible war scenarios. He recommended always having some cash in the house.
The Dutch banks also want to follow this recommendation in order to be prepared for the increasing geopolitical threat, Dutch media quote the spokesman for the national banking association NVB.
This is remarkable because the council contradicts the banks' business model. It is also the first time that banks in the country have made such a recommendation. However, the Dutch banks do not fear any damage: “If everyone withdraws a little from their savings account, this will not immediately be reflected in large numbers,” says the spokesman.
Swiss hoarding gold at home
Although Switzerland is known for its banks, the population has long been storing valuables at home. According to a survey, gold alone is often left unsecured in the apartment or buried in the garden. In the Netherlands, depending on the police, insurance often only covers cash amounts up to 500 euros. In Switzerland, insured people are better protected (see box).
This is how much money is insured at home
Monetary assets are insured free of charge in the household contents insurance for furniture up to 5,000 francs, even outside of security containers. Monetary values over 5,000 francs must be locked in a security container and require additional insurance, as stated upon request.
The following limits apply to cash at Mobiliar: up to a maximum of 25,000 francs for walled-in safes or cash registers over 100 kilograms. Up to a maximum of 50,000 francs for cash registers over 300 kilograms. For monetary values over 50,000 francs, Mobiliar decides on a case-by-case basis.
Are Swiss banks also advising people to have a nest egg at home because of the geopolitical crises? When asked, they refer to this, as do the Swiss National Bank and the Federal Office for National Economic Supply (BWL).
Cash for a weekly shop
The office offers an online emergency supply calculator that says: “Have enough cash at home in small bills that you can pay for a weekly shop and a tank of gas in cash.”
BWL spokesman Thomas Grünwald says that the office intentionally does not provide precise specifications so that, depending on the budget, the cash is sufficient to cover necessary purchases or medication for a few days once the food supply has been used up.
The federal government does not want to recommend the emergency fund because of a certain topicality. “That could cause unnecessary fear. “There can be many reasons why cash is important, even if, for example, electronic payments no longer work,” says Grünwald.
Renate Meier from the Swiss Bankers Association says: “We support the recommendation of the Federal Office for National Economic Supply to keep a minimum cash reserve in banknotes so that, for example, short-term bottlenecks can be bridged quickly and flexibly.”
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