Frozen Bank Accounts
Similar to the troubles with credit cards, bank accounts can get frozen with little warning and may not even be your fault. If your debit card gets stolen, your entire account can be drained and it can takes days, if not weeks, for the issues to get resolved during which you won't have access to your money in the bank.
ATM Reliance
Another benefit of having cash at home is that you aren't reliant on ATMs when you need some extra cash. ATM fees can cost several dollars for each withdrawal if the ATM is not part of your bank network.
Add in the rising cost of driving your car to the ATM to get your money, and the cost of not having money at home can quickly add up. While some may argue that having cash at home means you're not earning interest on it, the savings from avoiding ATM fees and travel costs will end up being more for most people. If you have to pay an ATM fee more than a couple of times, you'll wipe out any interest that the money in the bank would have earned.
When you decide to keep money at home, it's important to remember to keep it in smaller-denomination bills which aren't larger than a $20.
When disasters strike, there usually isn't an option to receive change for large denomination bills. An emergency cash fund of several hundred dollars at a minimum is advisable.
It takes only one incident when you wish you had cash on hand to convince you to keep some extra money hidden in your house. If that hasn't happened to you yet, feel fortunate -- but be prepared on the chance that it does.
