The program resides on your hard drive so does your data. Moneydance takes the protection of your data very serially so does not use a cloud-based program.
The only time Moneydance uses the cloud, say Dropbox is if you elect to sync your data to another computer or a mobile device say a phone. When Moneydance uses Dropbox, it automatically uses end to end symmetric AES256 encryption. As used by governments and banks for example. Keys (syncing encryption passphrase) are not held in the cloud, only on your devices. Moneydance never sends data to their server, they don’t have the encryption key. If Dropbox was to be hacked, hackers would only get an encrypted set of files. For information on how to sync between computers and mobile devices such as phones see http://help.infinitekind.com/kb/syncing-and-sharing-data
If you don’t use syncing your data never leaves your hard drive. If you set a password on your data file your data on your hard drive is encrypted. Don’t forget this password as Moneydance will not be able to retrieve this password.
Try thing out for yourself.
Download from https://infinitekind.com/download-moneydance-personal-finance-software
Downloaded version of Moneydance is a full working version with the only limit being a maximum of 100 manually entered transactions, with no time limit. Imported files from other financial programs and your bank have no limit on imports. If you decided to purchase you are sent a key by email that unlocks the 100-manual transaction limit. If after testing with this free trial version you purchase and change your mind see the 90 day money back guaranty at https://infinitekind.com/refunds
For the future Moneydance never sunsets the version it releases. So, you don’t have to upgrade. If you won’t to upgrade the next version is free (say 2015 to 2017) and from then on you get a 50% discount. All upgrades within a version are free.