While I understand that some people don’t trust banks and other financial institutions, I don’t understand why. This fear was at its highest during the financial crisis and the years that followed when bank failures were at their peak. But even then, the best place for your money is in the bank not stuffed in the walls or under the mattress at home. I don’t trust my cable TV company but I’m not going to throw away my TV.
As long as you stay within the limits of federal deposit insurance, the banks failure is the banks problem not yours. Nobody has ever lost a cent of federally insured deposit money. Sure the remote chance of a bank failure or technology breach may create some temporary inconvenience but this is nothing compared to what’s lost if your house gets robbed, catches fire, or is destroyed in a natural disaster. Other than some emergency cash in the event of a sudden evacuation, don’t keep extra cash in your house – the risk is too great. Keep it in a regulated and insured financial institution instead.