Emergency Fund: Only These Cash Limits Really Exist

The question about the amount of the emergency fund is easy to answer. The same goes for the question of how much money is allowed at home. Because the supposed limit of the rumored 10,000 euros does not exist in Germany. This error may be due to other cash limits in the Federal Republic.

As Sparkasse explains, for cash payments or cash deposits, for example, the indicated limit must be respected. In both cases, various measures are required if the value exceeds 10,000 euros.

The background is the EU directives and the new regulations of the Federal Financial Supervisory Authority (BaFin). These ensure that you will have to identify yourself if you pay too much cash. This data is collected and stored by the retailer. If you deposit a lot of money, proof of the origin of the money will be required.

From this level you must hide your emergency fund

However, if you keep a lot of things at home, you don't have to worry about that. However, the emergency fund should not be stored carelessly. If it is easy for thieves to find, financial difficulties can quickly arise. As the Alliance explains, there are some places where criminals look first.

Bad hiding places:

  1. Under the mattress or on the pillow
  2. Between books
  3. On DVD
  4. in the desk drawer
  5. on the nightstand
  6. In the coffee can or vase.
  7. In the game collection
  8. between clothes
  9. Behind the photos
  10. In the garden

If you want to be safe, you can look for creative hiding places for your money on Amazon, for example. But there are surely places within your four walls that even thieves don't immediately notice.

But be careful: From a sum of 1,000 to 2,000 euros, a good hiding place is necessary. Because, as “Die Insurers” among others reports: “The maximum limit for cash […] It is usually 1,000 to 2,000 euros. On the other hand, if you keep your savings in a safe that is structurally connected to the home, you will typically be protected by higher limits in the event of a theft.

Sources: Sparkasse, Allianz, Insurers

By Dana Neumann