Why We've Gone Back to Storing Cash Under the Mattress
Demand for paper currency continues to grow, with the highest-denomination bills most in vogue.
An elderly gentleman licks his thumb while counting money stashed underneath his mattress, 1972.
Source: Getty Images
As the world shifts to paying for goods and services electronically, you’d expect the volume and value of paper currency in circulation to diminish. Surprisingly, though, bank notes are more in demand than ever. The combination of ultra-low interest rates around the world and pandemic-inspired hoarding are instigating not only a preference for cash but also for the highest-denomination bills.
In the U.K, there’s evidence that more people have been storing their wealth under the proverbial mattress. While the Bank of England has so far resisted driving its key policy rate below zero, central bank officials have stressed that negative rates are possible as part of the monetary toolbox. In any event, the interest rates available to Britons on their savings accounts are already the lowest on record, according to data compiled by Moneyfacts. And demand for the highest denomination note available in British pounds has been growing.