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Consumer advocates recommend using safe deposit boxes as alternatives to fireproof safes or other home storage devices. Safe deposit boxes make excellent places to store important documents, such as original deeds, wills, titles and social security cards. Travel experts advise against storing passports in safe deposit boxes, in case emergency or last-minute trips pop up during times when banks may be closed. Likewise, consumers who may want to store valuable jewelry and watches inside safe deposit boxes should consider whether a bank's operating hours might prevent their enjoyment of these expensive items.
Historically, some consumers stored emergency cash inside safe deposit boxes. In today's world of ATMs and credit cards, banking experts recommend leaving cash in accounts where it can be tracked and insured. - Most consumers rent a small safe deposit box, large enough to hold standard contracts or documents. Banks may charge a monthly rent for standard safe deposit boxes, or include the rental as a benefit of holding an account. Like post office boxes and self-storage facilities, the price of monthly rent goes up along with the size of the box rented. Most bank vaults can accommodate five or six different sizes of safe deposit boxes, with some units able to handle "banker's box"-sized collections of files.
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The biggest benefit of renting a safe deposit box is peace of mind. For most consumers, fire and storm loss are bigger threats to valuables and documents than theft. Keeping items in a safe deposit box reduces the likelihood that a sudden calamity may cause the loss of critical items.
In other cases, box holders may prefer to arrange for an attorney or an accountant to gain access to a safe deposit box. Storing key documents at a convenient bank branch may be preferable or more convenient than requiring a service professional to meet at a client location. Arranging for emergency third party access is essential for customers who store wills and emergency instructions in a safe deposit box. -
Some TV viewers believe that safe deposit boxes offer criminals safe harbor from police and from the IRS. In reality, assets held in safe deposit boxes can be searched and seized by investigators, just like any other bank accounts or rented properties. Once a bank manager provisions a safe deposit box, the bank no longer holds any keys to the box. Most banks require customers to pay for a locksmith to drill and replace locks in the event of lost keys.
While vault heists happen more often on TV than in real life, safe deposit boxes are still subject to theft, fire, flood and storm damage. Some consumers have even reported instances of bank employee errors that resulted in safe deposit boxes being mistaken for those of deceased account holders. In those cases, box contents were removed and auctioned. Bank insurance and federal deposit insurance generally does not cover the loss of items stored in safe deposit boxes. Therefore, consumers should arrange for private insurance coverage for valuable items. - In an era when most banking happens online or at ATMs, renting a safe deposit box can seem like a throwback to a simpler time. However, especially for bank customers who receive box rentals as courtesy perks, a safe deposit box provides a convenient location to store original legal documents and emergency paperwork.
