Keeping cash does not mean one has to keep it at home. You can actually leave it in a safe at the bank and just use the bank as a warehouse. In this case you h

Keeping cash does not mean one has to keep it at home. You can actually leave it in a safe at the bank and just use the bank as a warehouse. In this case you have to pay a small fee, but you decrease the amount of cash that can be used for loans, and thus make loans more expensive, leading to better rates for lenders in the future. (At least this is my understanding at the moment - still getting into the topic, so please excuse if I am oversimplifiying.)