Renting a safety deposit box is another way to store your valuables besides using a safe. Generally, they are believed to be a safe place for the storage of valuables. But how true is that? Most bank tellers will reassure you that your belongings are completely safe, but is this true?
The safety deposit box has been a staple of the financial world for centuries. They are used by people all over the world to safeguard their valuables, including money and prized heirlooms. The only problem is that there have never really been any guarantees about their security.
One reason that many people don’t use safety deposit boxes is that they are either too expensive or require long-term contracts.
So, are safety deposit boxes safe?
Yes, they are mostly safe because it is in a bank that is secure. Safe deposit boxes that are at the bank obviously are pretty safe because they have advanced security from both humans and the system. However, if the case is renting a safety deposit box, its safety also depends on what you store inside.
The one thing you have to remember about safety deposit boxes is that they are, well… locked! Therefore, these types of boxes are best suited for people who don’t need to access the items inside of them on a regular basis. This can be perfect if you want to keep some cash separate from your other savings, or jewelry that you only wear on special occasions. And if this sounds like something you would like to consider, then go ahead and call your bank now.
There are some reasons why safe deposit boxes have become a great option for many people such as follows:
More secure than stored at home
Keeping valuables in a safety deposit box is more secure than storing them at home. Since it is in the bank, it is equipped with alarms, video cameras, and a great locking system that is hard to break in. This box is also designed to withstand fire and natural disasters.
Affordable renting cost
You can expect to spend from $35 to $225 every year to rent a safe deposit box. The price might vary based on the size of the box and the bank that offers these services.
Although storing valuables in a safety deposit box is safe enough, it doesn’t mean that you should keep all your valuables there. Let’s get to know what should and shouldn’t go in the box.
Items to store and not to store in the safety deposit boxes
Items to store
Antique items, important documents, and valuables that are not needed right away are suitable to be stored in a safety deposit box. Other items can be stored in this box such as stamp or coin collections, jewelry, important contracts, and business papers. Please note that the bank may limit the number of items that can be stored depending on the items’ value. When renting a box, there might be restrictions and rules to prevent owners from storing illegal things inside.
Items not to store
Avoid keeping items that will be used in a short time or emergency in a safety deposit box. Other items that should not be put inside are items that can cause problems if you cannot protect them properly. Several examples of items that you should not store in this box such as passports, medical directives, the only copy of important documents, and will. If you store those items but are suddenly in need, it can be a big problem if it is out of banking hours, weekends, or holidays. So, those kinds of items are better to keep off the safe deposit box.
FAQ | What readers want to know
Is it safe to keep money in a safety deposit box?
Some people think that they should keep money in their safe deposit boxes. The reason is that if the bank fails, then they will have access to money. This is never a good idea because you are not earning interest on the money and it makes it seem like you are trying to hide your money from the IRS. Keeping cash in your safe deposit box is not illegal but many banks have policies against this now.
What are the risks of a safety deposit box?
As with any type of insurance, the use of a safety deposit box has its risks. Theft is one obvious risk. But there are other less obvious risks to keep in mind also.
If you put something valuable in a safety deposit box that becomes lost, damaged, or destroyed by fire, flood, etc. The bank may refuse to give it back. If the value has great sentimental value to you but little dollar value, the bank may refuse to reimburse it because there is no dollar value. For example, you could lose property that was very valuable to your great-grandfather who died 100 years ago but has little value today.
What happens if your safe deposit box is robbed?
If a safe deposit box is opened under any of these circumstances, at least two people must be present to inventory the contents. The bank will keep the contents in a vault for safety. If you think that something is missing from your safe deposit box, contact the bank right away.
What is safer than a safe deposit box?
If you have things with a lot of value, like jewelry, then you would need a safe that is bolted down to the floor. And if you are more creative, then maybe something that is hidden in plain sight would be good for you.
Storing valuables in the safety deposit box is safe when it is in the bank because it is equipped with great security and locking systems such as double keys. How safe to store things in the safe deposit box also depends on the types of items you store inside since it affects the accessibility of the owners.