The Bank of Portugal has recommended that families keep a small reserve of physical cash at home to prepare for unforeseen events, such as power outages or digital payment failures. The blackout affecting the country last year made it clear: relying solely on electronic payments can be risky if technology goes down. In emergencies, having cash ensures you can still buy essential goods and services.
How Much Cash Should You Keep at Home?
Experts suggest storing enough cash to cover your essential expenses for around 72 hours. In some European countries, the recommended amount is between 70 and 100 euros per person, which is generally enough for groceries, medication, or transportation during short disruptions. However, authorities advise you to take safety precautions when keeping money at home—choose secure, hidden places, protect cash from moisture, and don’t share the location unnecessarily.
Advantages of Having Physical Cash
Keeping physical cash at home offers several key benefits:
- Uninterrupted Access: Make essential purchases even when cards or mobile payments aren’t working.
- Emergency Readiness: Immediate access to cash in case of banking system failures, technical glitches, or national emergencies.
- Increased Independence: Greater autonomy if digital services are temporarily unavailable.
Best Practices for Storing Cash at Home
- Hide cash in discreet, secure places—such as inside books, unused coat pockets, vases, or hidden furniture compartments.
- Make sure cash is protected from moisture to prevent damage.
- Avoid storing larger sums than necessary for safety and to minimize the risk of loss.
Legal Considerations for Keeping and Using Cash
In Portugal, keeping cash at home for personal use is legal. However, there are limits on cash payments:
- Residents: Maximum 3,000 euros per transaction
- Non-residents: Maximum 10,000 euros per transaction
- Merchants or companies: Limit is 1,000 euros per transaction
- Tax payments: Only up to 500 euros allowed in cash
Exceeding these amounts can lead to fines ranging from 180 to 4,500 euros.
Withdrawal Limits and Tips
At ATMs in Portugal:
- Maximum daily withdrawal: 400 euros
- Maximum per transaction: 200 euros
- Minimum withdrawal per operation: 10 euros
Final Advice
Keep a practical, manageable amount of cash on hand for emergencies—but don’t stash large sums for long periods, as cash can lose value due to inflation. Above all, prioritize security and keep your emergency fund discreet.
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