Keep It Under Lock and Key: Safe Deposit Boxes

The safe deposit box service in Glasgow in Glasgow, Scotland. (Jeff J Mitchell/Getty Images)

While an at-home safe should be part of your security plan, a safe deposit box may be more feasible for many of us. It provides privacy and security, protecting your items from theft and scrutiny. However, it’s essential to know what you should and shouldn’t store in your safe deposit box. It is not meant to hold everything you deem valuable.

Renting Your Safe Deposit Box

Although more and more financial institutions are going digital, a safe deposit box can still be rented from a bank or credit union. These boxes are stored in a vault and are generally available in sizes from 3 x 5 inches to as large as 10 x 15 inches. Prices range from under $50 to over $200. If you already have an account at the institution where you are renting your safe deposit box, you may get a discounted price.

Once you’ve rented your box, it’s important to know how to use it.

What Should Be in Your Safe Deposit Box

When deciding which items to put into a safe deposit box, think about what can and cannot be replaced.

For instance, if you have heirlooms—like your great grandpa’s cufflinks—that are sentimental or monetarily valuable, they might be a great candidate for the safe deposit box. It is also suitable for other jewelry or miscellaneous valuables.

Personal papers like marriage certificates, birth certificates, house deeds, or any other documents that are difficult or impossible to replace, should also be stored in the deposit box.

From a financial standpoint, stocks, bonds, or certificates of deposit can set you back if they are lost or stolen. A safe deposit box is a great home for them.

Consider what would happen to these items if there was a natural disaster or theft at your home or business.

What Should NOT Be in Your Safe Deposit Box

Analyze your legal documents. Are there documents that you may need in a hurry? For instance, don’t store a living will, will, or power of attorney in a safe deposit box. If something were to happen to you, your family might need it quickly. If you are the only person authorized and with a key to the safe deposit box, there could be a problem.

Instead, keep documents like these with your attorney or install a fireproof floor safe in your home.

Although it may be appropriate to store antique coins in a safe deposit box, cash is a different matter. First, you'd be losing interest you could have earned if you invested this money. You also won’t have quick accessibility to it, if it is needed. And finally, many financial institutions frown on the practice, or forbid cash from being kept in a safe deposit box.

Forbidden Contents

Some items are not permitted in safe deposit boxes. This includes all drugs, legal or illegal. Needless to say, explosives, ammunition, and firearms are not allowed either.

Who May Access Your Safe Deposit Box

Banks and credit unions have strict rules regarding who has access to a safe deposit box. So you can’t just hand your key to someone and think they'll be allowed in.

Only co-renters and duly appointed deputies or agents can access the box. These individuals must have photo identification and signatures on file with the financial institution.

Having a power of attorney is not enough to access a safe deposit box. The power of attorney must specify that it includes safe deposit access privileges. Moreoever, the person designated as power of attorney must still be set up as an authorized user of the safe deposit box.

If you’re willed a safe deposit box, this does not give you immediate access. To access it, you must still have your identity and signatures on file at the financial institution where it is located. If they are not on file, you will have to provide a court order or similar document. This also applies to an executor or legal conservator.

How to Access the Box

Two keys are used to open the box: one to be kept in your possession, and one for the financial institution.

When you first rent a safe deposit box, a key will be given to you for the box. It’s up to you to secure these keys since the bank or credit union doesn’t keep copies of the keys you are given. If you lose the keys, the locks will need to be changed at your expense.

You must show identification and have a key to open the safe deposit box.

Are Safe Deposit Contents Insured

Contents in a safe deposit box are not insured by the Federal Deposit Insurance Corporation (FDIC). Although financial institutions oversee the protection of their vaults, unless you can prove negligence, you are not insured if something happens to the contents of your safe deposit box.

The best way to protect yourself is to add the contents of the safe deposit box to your homeowners’ or renters’ insurance.

Using Your Safe Deposit Box Wisely

Take a hard look at what you need to keep in a safe deposit box. Anything that you might need in an emergency should be kept at home in a fireproof safe, or possibly with an attorney.

Financial institutions are strict when it comes to accessing safe deposit boxes. In the event that something happens to you, make sure your executor or a family member has access by having their identities and signatures on file with the bank or credit union.

The Epoch Times Copyright © 2022 The views and opinions expressed are only those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.