What is the most amount you can legally keep at home?

The practice of keeping cash at home is constantly increasing in France. Although it is not prohibited, there is nevertheless a limit that must not be exceeded. In this article, we will explore the regulations surrounding this practice and the maximum amount that one can legally store at home.

Hoarding: a growing phenomenon

More and more French people are choosing to store their money in places such as dressers, safes or even under their mattresses rather than opting for traditional savings solutions like bank accounts. This practice, called hoarding, consists of keeping money without investing or circulating it. The reasons why some people prefer this method are varied, including distrust of banks and a desire to keep their savings close at hand.

French legislation: authorized amount and supervision of the practice

Contrary to popular belief, there is no specific legal limit on the amount of cash you can keep at home in France. However, the tax administration closely controls this practice:

  • When the amount kept at home exceeds 50,000 euros, you must be able to justify the origin of the funds and declare them to the authorities.
  • In case of control, you will have to pay taxes on the undeclared sums as well as possible penalties.

It is therefore recommended to comply with the legislation to avoid any risk of sanction.

Risks and Warnings

Keeping cash at home has several disadvantages and risks that are important to consider:

  • Theft: Money kept at home attracts burglars and is not insured against theft.
  • Deterioration: A fire, flood or other disaster could damage or even destroy your savings.
  • Loss of interest: Unlike a savings account, money stored at home does not generate interest, which represents a financial loss in the long term.

Alternative solutions and tips to better protect your money

While hoarding may seem reassuring, there are more secure and profitable solutions for storing and growing your money:

  • Savings account: Regulated savings accounts (Livret A, Sustainable and Solidarity Development Account, etc.) are tax-exempt and offer a minimum interest rate.
  • Life insurance: This investment offers a wide variety of investments and allows you to benefit from an advantageous tax framework.
  • Real estate investment: The purchase of real estate can generate rental income and constitute assets that can be passed on to one’s heirs.

While keeping cash at home is not prohibited, it is nevertheless supervised and involves significant risks. It is best to study savings and investment alternatives to ensure the security and profitability of your money.