Regulations for a Bank Safe-Deposit Box
Many people use a bank safe-deposit box to stow valuable items. Very few rules and regulations at the state or federal level pertain to safe-deposit boxes, but renters should make themselves familiar with the rules of the bank from which they intend to rent the box. No rules define what people can keep in safe deposit boxes, but certain laws allow people other than the owner to access the box.
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Accessing a Safe Deposit Box
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Banks have two types of safe-deposit boxes: single entry and dual entry. Only two keys, either of which can open the box, are created for single entry boxes, and both are given to the renter. People who rent dual entry boxes also receive two identical keys, but renters can only access the box if a bank employee also inserts the bank master key into the second keyhole. Banks require renters to identify themselves and sign a log whenever they access their box.
Government Access
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Federal law enables a law enforcement officer to file a motion with the court to gain access to a safe-deposit box if law enforcement has grounds to suspect that the box contains illegal items, such as stolen goods, drugs or guns. The bank, upon receiving such a request, must arrange for a security firm to drill out the lock and force the box open. The Internal Revenue Service cannot gain access to the box of a suspected tax dodger but can place a freeze on the box and deny the renter access to it.
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Other Access
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State laws vary about what happens to a safe-deposit box when someone dies. Generally, banks only allow someone with letters of administration appointing him as executor of the estate to access the box, but in Iowa the renter can name a safe-deposit box beneficiary, who gains full access upon the death of the owner. Renters can add co-owners to safe-deposit boxes; there are no limits to the number of renters but banks only issue two keys per box.
Misconceptions
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Some people believe that you cannot keep cash in a safe-deposit box, but no federal or state law exists that prohibits it. Funds held in a box are not covered by the Federal Deposit Insurance Corporation, or FDIC. Box contents are not insured by banks, and banks are only responsible for losses incurred during a fire or similar incident that was caused by bank negligence. Box renters must insure valuables kept in safe-deposit boxes by including the items on their homeowner's insurance.
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