A significant number of South Africans are still opting to store their hard-earned cash savings at home, even as formal banking services expand across the country.

This so-called ‘mattress economy’ highlights ongoing challenges around trust, access, and everyday financial behaviours, according to new insights from FinMark Trust’s FinScope South Africa survey and the World Bank Global Findex database.

Read more: Travel better while saving money

An estimated 7.3 million South African adults remain unbanked, while nearly half of consumers keep their savings in physical cash, rather than in formal accounts. Experts say this is not merely a matter of preference, but stems from real barriers, including limited access to suitable products, concerns over trust, and deeply rooted saving habits.

Security risks loom large, with approximately 1.5 million burglaries recorded between 2024 and 2025 (Stats SA, 2025). Cash hidden at home is highly vulnerable to theft, as well as threats from fire, floods, or simple loss – with no insurance or recovery options available.

Beyond immediate dangers, keeping money at home means missing out on interest earnings and makes it easier to dip into savings impulsively. In South Africa’s tough economic climate, this can hinder households’ ability to build lasting financial resilience against unexpected shocks.

Buli Ndlovu, executive head: personal private banking at Nedbank, acknowledges the realities driving these choices. “Saving at home often comes from very real concerns around access, trust, and control, but it can also leave people exposed and limit the ability of their money to grow.”

Banks are responding with savings products designed for real-life needs – offering flexible access without early withdrawal penalties, competitive interest rates, no monthly maintenance fees, and immediate access to funds. “At the heart of our purpose is a commitment to helping South Africans see money differently and rethink the role it plays in their everyday lives. This is why we continue to evolve savings solutions that balance easy access to funds with the ability to grow savings over time.”

Also read: Creating money savvy kids for the future

The persistence of cash-based saving raises broader questions for South Africa’s financial system. As banking access has widened, what more is needed for formal tools to match the immediacy, control, and perceived safety of keeping money at home? Can tailored banking products successfully replace informal habits that remain dominant in many communities?

For now, the mattress economy endures, a reminder that financial inclusion requires not just access, but solutions that truly meet people where they are.

Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates!