Keeping financial data and other critical documents in a guarded bank vault seems so antiquated in today’s digital age because it’s so simple. Safe deposit box insurance seems to be on the decrease, as well. According to the New York Times, banks are reportedly ceasing to provide these boxes, and those that do claim at least half of their packages are now empty.
Safe deposit boxes, on the other hand, have a use. A birth certificate or your home deed may still be required even in today’s primarily digital, paperless era. These types of documents may have been found on paper in the past. No digital reproductions of essential physical items, including family heirlooms or collectible pieces, are available either. When it comes to important documents and personal items, the best location to store them is in a safe deposit box.
However, this does not imply that you should keep all of your valuables in a safe deposit box. Only when the bank is open can you access your possessions stored in a safe deposit box at the bank, which is inconvenient if you need to retrieve important documents. And certain tangible assets should be kept in a different location for a variety of reasons.
Do you want to rent a safe deposit box in London? What’s more, if you don’t have one, these things may sway you? The following list will help you decide what to keep and what not to keep in your safe deposit box.
- What Happens In A Safe Deposit Box?
Because most boxes have two keyholes, the only method to open them is by inserting both keys simultaneously. One key is yours to keep, while the other is the banks. Each of you receives a copy of the renter’s key if you share the box with someone else, such as a spouse.
The second set of keys increases security. If your safe deposit box key is stolen, no one except a bank staff will be able to open it. On the other hand, the bank will not allow anybody to open a box or enter the secured chamber where the money is stored. Banks usually require a signature that can be compared to your signature on file before they’ll open a box as evidence of identification.
A safe deposit box is an optional feature that isn’t included with your bank’s standard checking or savings account. According to The New York Times, depending on the size and location of the bank, banking institutions charge anything from $20 to $200 a year for a box. However, you may be eligible for a reduction on this charge if you have a specific bank account. It used to be tax-deductible, but the 2017 tax reform law did away with that benefit as well.
- Using A Safe Deposit Box Has Many Benefits
You don’t have to store all of your valuables and critical documents in a safe deposit box. You might, for example, keep these things secure in your house’s tiny fireproof safe. Experts, on the other hand, believe a safe deposit box is preferable for security reasons.
Even if it’s feasible, installing a safe in your home’s wall is quite costly. For starters, most home safes are lightweight and easy to move around with you. That implies a thief might steal your safe and use a drill to get at the contents later. Also, if thieves break in while you’re home, they may compel you to unlock the safe.
A safe deposit box also provides better protection against natural catastrophes. Vaults at banks are built to resist severe winds and flames that would devastate a typical residence.
On the other hand, floods are one kind of natural catastrophe that they cannot always prevent. Experts suggest placing them in a waterproof plastic container or zip-top plastic bag before depositing essential documents, photographs, and other things in your safe deposit box. In the event of a flood, it offers additional protection against water damage.
- Safe Deposit Box Drawbacks
A safe deposit box is the safest location to keep valuables, but it’s also the most difficult to get to. You can only access your box while the bank is open, and you may have to wait for a long for an employee to assist you in getting into your box. Safe deposit boxes aren’t available at all of your local bank locations, so you may have to drive the extra distance to and from the bank to store yours.
Items in a safe deposit locker are not insured by the FDIC, unlike money in your bank account. However, safe deposit boxes are not covered by most banks’ insurance plans. Since many banks include wording in their secure deposit box rental agreements limiting their responsibility for missing goods, you may not be able to sue the bank to recoup your damages.
Wrapping up
If a natural catastrophe ever destroys the box, it’ll be easier to replace the missing papers or make an insurance claim for your lost possessions if you have documented everything. And if you die without accessing the box, your heirs will have a list of what’s inside if they can’t.
While the theft of valuables from a safe deposit box is very uncommon, it does happen. According to The New York Times’ interview with financial adviser David O’Brien, you should periodically check your box to ensure that everything on your list is still inside. According to O’Brien, bank employees confused her box number with the number of another safe deposit box, which was empty since the owner had failed to make good on their deposit obligation. As a result, she was able to retrieve the contents of the box with relative ease.
Most states enable banks to drill into your box and sell the contents if you don’t pay your rent for an extended period. Keep your payments current to ensure that your safe deposit box and its contents remain secure.
