Excluding money in their wallets, the average amount people have at home is just over £280. This means that across the country, the UK's 24.9 million households have over £7 billion in cash.
The FSCS has conducted this research to coincide with today's launch of its consumer awareness raising programme. Although the FSCS was in the spotlight following problems at Northern Rock and the failure of five banks including Bradford & Bingley and Icesave, research suggests there is still a lack of awareness of the protection available to consumers and a high degree of confusion about who provides that protection.
While 37% of those questioned say they have less than £20 at home, 4% said they had over £1,000 lying around the house. This included 1% who admit to stashing more than £10,000 at home.
The survey reveals that over one in ten (13%) people believe in keeping their cash at home. Perhaps surprisingly it is young people, those aged between 16 and 34, who are most likely to have this view (18% average).
Small returns are partly to blame as a third (32%) say they see no point in depositing money with a bank or building society when interest rates are at historically low levels.
The campaign aims to increase awareness of the FSCS and to reassure and boost consumer confidence, and consequently aid financial stability. The campaign has the backing of leading high street banks, building societies, insurance providers and independent financial advisor networks.
In line with the campaign launch, compensation limits have also increased. Since 31 December 2010 consumers that hold deposits with a registered bank, building society or credit union that goes bust will be protected up to £85,000. This is an increase from the previous limit of £50,000.
Commenting, Mark Neale, chief executive of the Financial Services Compensation Scheme, said: "Even though rates are currently low, those wishing to save money should always do so with a bank, building society or credit union which is covered by the FSA, the UK financial regulator. It is vital that savers know their money is protected up to the new limit of £85,000.
"By contrast, those deciding to keep money at home, whether as savings or for convenience, may not be covered by household insurance in instances such as burglary. Under new rules, if financial institution were to fail most customers will get their money in a few weeks, so there really is no need to stash it at home."
