Do you keep all your savings in a savings account or in cash? (funds, Wells Fargo)

[cakecakecake]

I get paid ever 2 weeks. I use to take out a few hundred bucks from each paycheck and save it in my own personal safe at my apartment. But now I have it set up in my account so whenever I get paid, it automatically puts the money in my savings account in the bank. So I never really see it in cash anymore. Are there any advantages/disadvantages to doing one or the other?

The reason I use to take it out and keep it with me in cash is because I like to see it grow and know that I can physically hold it. Something about putting it in some savings account made me nervous for some reason. But I'm coming around I suppose.

[Pitt Chick]

Most of our 'savings' are stock, bonds and mutual funds.
Some are savings accounts in two banks and a credit union.
We keep no sizable cash at home.

[gentlearts]

Depends upon how much money you have. If you're talking a few extra hundred bucks, keeping it in the bank is fine, but if you mean bigger money to save for the future, you should get it invested where it will earn interest. Banks haven't paid anything for years.

[unknownuser123]

I keep what i need to cover bills in the checking account. then in my savings i kept 3 months emergency fund for easy access. the rest is put into my 401k, roth ira and some times my reg ira (rolled over from another 401k) depending on if my roth gets maxed for the year.

[Chaofan]

What makes you nervous about putting your money in a savings account? If you are putting your money in a U.S. bank, it is insured up to a total of $250,000 (per bank). Interest rates are pitiful right now, but at least you get something. If you keep your money in cash in your apartment and someone walks off with your safe, the money is gone. If a U.S. bank fails, you get your money back. I'd be more concerned about keeping easily portable cash in my home.

[acgood]

I can understand the desire to keep some physical cash, but anything more than maybe a week or two's worth of spending is an unacceptable risk in my opinion.

[happehart]

OP, I know this feeling.. having the money in the bank and not seeing it sometimes makes me feel that I don't have it.
I like to keep some cash on hand in case of emergency (ATMs stop working or dooms day comes ).
I keep 3 months of my monthly expenses in my savings account and the rest (if any) goes to IRA, Roth IRA and 401K.

[Florida2014]

Putting money into a savings account is a MILLION TIMES safer than keeping cash on hand in your home. Any number of things could happen to that cash - fire, flood, theft. Why in the world would a savings account scare you? Do you think Wells Fargo will just decide to keep it, lol?

At a minimum if you're hell bent on keeping cash for heaven's sake put it in a safety deposit box at a bank and only a few hundred bucks in cash on hand at home at any given time.

[cakecakecake]

Thanks for all the great replies so far everyone.

So it seems like keeping most of the savings in a bank account is what most people do. Maybe have a very small amount of cash on hand.

I understand what you guys are saying in regards to how a fire, flood, burglar, or whatever can make the physical cash I have on hand disappear with no way of getting it back. That does make sense. I guess, and I think someone else said this too, being able to hold the money in my hand makes me feel like I really do have it, rather than just seeing the balance in the online banking portal.

But yes you guys do make a good point about the FDIC guarantee as well. I guess the answer to this question comes down to personal preference based on how much risk you're willing to take on. As with anything in finance.

[Pitt Chick]

Originally Posted by cakecakecake

But yes you guys do make a good point about the FDIC guarantee as well. I guess the answer to this question comes down to personal preference based on how much risk you're willing to take on.

There is no risk with FDIC (up to $250,000, that is).