Safe Deposit Box

Reviewed by Annapoorna | Updated on Sep 28, 2020

Introduction

Gone are times when people used to bury their precious belongings underneath the floor of their houses. It is no longer safe to possess valuable or expensive articles at home. Banks have offered the depositors with a secure option of safe deposit lockers for this very purpose.

What is Safe Deposit Box?

The safe-deposit box refers to a bank locker that is rented out to the depositors of a bank. The bank maintains it for periodic rent, usually collected annually. It is used to keep valuables, important documents, and keepsakes locked under security.

Safe or safety deposit box is an individually protected container of a metal material. It is a part of the safe or vaults of a bank that is insured. They are designed to endure natural disasters, such as fires, floods, cyclones, or earthquakes.

When you rent out a safe deposit locker with the bank, a key is given to access the locker. Also, the banker holds a second 'guard key' to the locker box. With the technological adoption in recent times, a keyless system, such as biometric and access cards, have been introduced in the banking system.

Coming to the things that one can store in a safe deposit box would be something that is hard-to-replace or precious belongings. These include documents, such as contracts and business papers, physical stock and bond certificates, jewellery, small collectables, and family heirlooms.

Why Safe Deposit Box is Important?

The custodians of the safe deposit box rely upon the security of the building and the top-notch vault to protect their content. Also, bank vaults are guarded by video cameras and burglar alarms. Items kept in a safe deposit locker are protected from water and fire damage as well.

It is vital for people who are not comfortable storing their things in the digital environment.

Tips and Tricks for gaining Maximum Benefits

Take caution of which items are not to be kept in a locker box. Since bank lockers cannot be accessed 24x7, it is best not to put something that you might need in a hurry. Hence, it is recommended to not keep passport, copies of living wills, advanced medical directives, and durable powers of attorney, uninsured items, cash, or illegal items.

It is also advised that holders of bank lockers have at least one co-holder. They must be having equal rights and access to the locker. However, it is not recommended for persons suffering from any addiction or facing any financial, legal, or marriage issues.

Some banks or institutions provide that both (or all) holders must be present to open the safe deposit box. Although, experts suggest that one person be designated with the power of attorney to access the safe deposit box.

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