Banks With Safety Deposit Boxes

Fires, floods, storms, and tornadoes are all natural disasters that safety deposit boxes are meant to endure. Never keep a single copy of an important document in a Safe Deposit Box. People who are hesitant to employ digital storage would benefit most from safe deposit boxes. Although having a co-lessor for your box is a good idea, consider who would be the best fit.

Safeguarding your valuables can be stressful. There are other factors to consider, including where to place them and how much you want to pay for their protection. Purchasing a home safe is one alternative. Another option is to rent a safe deposit box from your local banking institution. You may also hear them called safety deposit boxes.

Although deposit boxes are a secure method to store valuables, you should not put everything in them. Things that require rapid and easy access should be stored at home. Read on for advice on what you should and should not keep in your safe deposit box.

What Is a Safe Deposit Box?

How Safe Deposit Boxes Work

A safe deposit box is a secure container, typically a metal box, that is kept in a financial institution’s vault. Account customers can rent these boxes, which are intended to store valuables and vital papers. To provide security, the box contains a dual lock system that requires two keys to unlock it.

Let’s look at a scenario. You inherited some unique coins from your grandfather and don’t feel comfortable storing them at your apartment. You are in the market for a safe deposit box! The first place to check is with your bank or credit union. Safe Deposit Boxes are housed in a safe vault and are typically limited in quantity. If there are any available, you can hire them for a year.

A Safe Deposit Box requires two keys to open: your key and one maintained by the institution. Keep your key in a secure location because you have the only copy. You can visit your box at any time during normal business hours, but the institution will require you to produce proof of identification before you can access your possessions.

Only you, the owner of the Safe Deposit Box, will know what’s inside. We shall specify below which goods are and are not safe to store in your box. Although your savings in an institution are insured, we do not recommend storing cash in a Safe Deposit Box because it is not federally insured.

Benefits of a Safe Deposit Box: Security for a Small Cost

Safe deposit boxes are an excellent solution for a variety of reasons. For starters, they are unquestionably safer than most people’s homes. So, whatever things you own, whether gold coins, family jewelry, or stock certificates, banks are considerably more difficult to break into and are located in secure places with alarms, video cameras, and high-security locks. The vaults containing safety deposit boxes are also fortified to withstand fire, floods, storms, tornadoes, and other natural disasters.

How much does all this security cost? Renting a safe deposit box can cost anything from $40 to $300 per year and above. The fee is determined by several criteria, including the size of the box you rent and the bank that keeps it.

However, just because you have a box does not imply you should store all of your belongings in it. Here are some pointers to help you determine what to keep in—and out of—a safe deposit box.

Five Things to Know About Safe Deposit Boxes, Home Safes, and Your Valuables

Your possessions change over time, as do the possibilities for protecting them. Here are a few options, including safe deposit boxes and home safes, as well as advice on how to evaluate each for your unique requirements.

1. Think about what should or should not be kept in a bank’s safe deposit box

Originals of vital papers, such as birth certificates, property deeds, car titles, and U.S. Savings Bonds that have not been transformed into electronic securities, are suitable for a safe deposit box. Other possible uses for the box include family heirlooms, precious collections, pictures or films of your home’s contents for insurance purposes, and irreplaceable photographs.

Be careful not to use your bank’s safe deposit box to keep anything you might need to access immediately or when the bank is not open. Passports and authentic “powers of attorney” that authorize people to transact business or make medical decisions on your behalf may be included. For advice on where to store your original will, consult with an attorney about what is necessary or suggested under state law.

2. You’re better off stashing your cash in a bank deposit account, like a savings account or certificate of deposit, than in a home safe or a safe deposit box.

“Cash that’s not in a deposit account isn’t protected by FDIC insurance,” stated Luke W. Reynolds, Chief of the FDIC’s Community Outreach Section. That’s because, by law, the FDIC only covers deposits in insured institutions, and only in the rare event that a bank collapses. A safe deposit box is not a deposit account.

Because it is a bank-provided storage space, the contents, such as cash, cheques, or other valuables, are not protected by FDIC deposit insurance if damaged or stolen. Furthermore, most financial organizations do not protect the contents in safe deposit boxes. If you wish to secure the valuables in your safe deposit box or house safe, speak with your homeowner’s or renter’s insurance agent about adding coverage to these policies.

“And unlike money in a savings account, money in a home safe or safe deposit box cannot earn interest, so the purchasing power of your cash will decrease,” Reynolds went on to say.

Also, examine the terms of the safe deposit box rental agreement, as the bank may restrict what you can store in the box. Cash may be one of these limits.

3. A home safe isn’t a true replacement for a bank’s safe deposit box.

A home safe could be used to keep replacement valuables that you may require immediate access to, such as a passport. However, home safes aren’t as secure as safe deposit boxes. “A burglar could more easily break into your home and open the safe than get inside your safe deposit box at your bank,” Reynolds said.

4. No safe deposit box or home safe is completely protected from theft, fire, flood, or other loss or damage.

Consider taking safeguards, such as storing products in water-resistant, zippered plastic bags or other resealable plastic containers. In the event of loss or theft, do not maintain identifying information on or near your safe deposit box key, such as the box number or the name of the bank. Remember that FDIC insurance is limited to deposit accounts by law. Also, do not expect the bank to reimburse you for theft or damage to the contents of your safe deposit box. Again, you can ask your insurance agent about adding some coverage to your homeowner’s or renter’s policy.

5. Be mindful of whom you allow to access your safe deposit box.

You can rent a safe deposit box with one or more people to whom you want to provide unfettered access. Keep in mind, however, that your bank will most likely not be liable for anything that persons you enable to enter the box remove without your permission.

What to Store in a Safe Deposit Box

Safe deposit boxes are ideal for storing valuable documents such as contracts and company paperwork, military discharge papers, physical stock, and bond certificates, as well as minor collectibles and family treasures. Keep in mind that the largest safe deposit boxes are typically only 10 inches by 10 inches and two feet deep. This allows plenty of space for precious photos and Grandma’s wedding band, but not for your antique doll collection.

Important items that will not require frequent access to your safe deposit box, such as:

• Personal documents, such as original birth certificates, adoption papers, marriage licenses, and citizenship paperwork.
• Copies—but not the sole copies—of wills and powers of attorney
• Military records and discharge papers (e.g., DD214s).
• School transcripts and diplomas.
• sensitive documents that you don’t want roommates, children, relatives, and visitors to find.
• The deed to your house and any automobile titles
• Paper stock and bond certificates (though most are now issued electronically), including US savings bonds.
• An inventory of your home’s contents, in case you need to file a claim under your homeowner’s insurance policy.
• Important company documents, records, and contracts.
• Hard drives and flash drives containing backups and crucial data
• Jewelry, collectibles, and family keepsakes with financial or sentimental value
• Other documents or little items that are difficult or impossible to replace.

Even though safe deposit boxes are built to resist natural disasters, it’s a good idea to store anything that could be damaged by water in a waterproof container like a zippered plastic bag. This adds a layer of safety while also making it easier to arrange your safe deposit box. And, before you save those crucial papers and images, make electronic copies to keep on your computer or in the cloud. Just make sure your family understands how to access them.

Items You Shouldn’t Keep In a Safety Deposit Box

You can only access your safety deposit box during banking hours, so you won’t be able to use it on holidays or, in some situations, weekends. Keep stuff that you know you won’t need in an emergency. Passports, medical directives, original copies of wills and powers of attorney, and other documents that you may require at any time should be kept in a secure location at home, such as a fireproof home safe fastened to the floor or wall.

You should keep the following objects out of your safe deposit box.

• Passports

• Sole Copies of Important Documents

• Uninsured Valuables

• Cash

• Anything Illegal

1. Passports

Even if you are not a frequent foreign traveler, you never know when you will need your passport for business, a sudden vacation, or to assist a relative or friend abroad.

2. Sole Copies of Important Documents

Only copies of living wills, advanced medical directives, and durable powers of attorney are worthless if they are kept in a safe deposit box that no one can access. Inform your loved ones of the preparations you have made and where they may find the documentation.

Your will, for example, is an important document that you should never keep only one copy in a safe deposit box. This is especially true if you have not chosen a cosigner for your box. If you die or become incompetent, your loved ones may have difficulty accessing your safe deposit box, which contains the only copy of your will.

Wills, living wills, medical directives, and powers of attorney should be kept in a secure location at home (such as a fireproof safe) and shared with a trusted relative or friend. Remember to give your medical proxy and the person who has your power of attorney copies of any relevant paperwork.

3. Uninsured Valuables

Even if valuables in a safe deposit box are secure, you should ensure that they are protected by your homeowner’s insurance policy or a special rider, just in case—some businesses specialize in insuring safe deposit box contents.

Keep in mind that while money in a federally insured bank or credit union is protected, goods in a safe deposit box are not. Tell your insurance company that the valuables will be stored in a safe deposit box. You may be able to get away with a lesser premium because things will be more secure than they would be at home.

4. Cash

The money you deposit in a federally insured bank or credit union is insured up to $250,000 per depositor, per bank, but the cash in your safe deposit box is not. You’d be much better off keeping your money in a savings, money market, or other sort of bank account that is insured. You may also be able to earn some income, which is not possible if your money is stored in a box.

5. Anything Illegal

Firearms may or may not be permitted, so check with your bank for clarification if this is important. Explosives, hazardous items, and illegal narcotics are strictly prohibited.

Are Things In a Safe Deposit Box Insured?

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