7 billion in cash

More than £7 billion in cash kept in 'shoe box savings' in UK homes

Survey reveals the extent of the UK's 'hidden billions'

Households across the UK have more than £7 billion in cash stashed away in shoe boxes, inside biscuit barrels and in drawers, according to a survey carried out by the Financial Service Compensation Scheme.

It found that the average home has over £280 lying around, and that's not including money found in purses and wallets.

The survey reveals that over one in ten people believe in keeping their cash at home rather than in a bank or building society, and surprisingly it is young people between the ages of 16 and 34 who are most likely to have this view.

Low interest rates are partly to blame as a third of people say they see no point in depositing money with a bank or building society while rates remain at historically low levels.

Incredibly, 13% of UK adults think their money would be safer at home than in the bank, and 17% saying that they were prepared to take risks with their savings.

But with many people receiving money as Christmas presents and taking additional funds out for the holiday period, consumers are warned that their cash may not be covered by household insurance if they're burgled.

Putting your hard earned cash in a bank, building society or credit union is the best way to keep your money safe, and now the FSCS is reminding consumers that since 31 December 2010, savings of up to £85,000 are protected in case the organisation they bank with goes bust.

For more information visit: http://www.fscs.org.uk/