Is it safe to keep valuables in a bank safe deposit box? This may seem like a silly question, but about a year ago I went to a local bank and read a box lease agreement. I read that the bank discourages people from storing jewelry and coins in boxes, so I didn’t rent one. I remember the company representative explaining to me that two keys were needed to open the box.
Are banks responsible for lost items? I imagine that for privacy, there are no cameras in the safe deposit box area. I have jewelry at home, but I don’t feel safe keeping it there. I constantly hear about break-ins in my neighborhood. Am I thinking about this? Are there other options for keeping valuables safe? My jewelry has a strong sentimental value to me, making it irreplaceable.
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Related to: I have a “normal” first-world problem: Should I buy a $30,000 bracelet during a global pandemic?
Safe deposit boxes have their drawbacks.
Federal Deposit Insurance Company Consumers are advised Do not confuse safe deposit boxes and deposit accounts. The first is storage space provided by the bank, “so the contents, including cash, checks, or other valuables, are not insured by FDIC deposit insurance if they are damaged or stolen,” the insurance company says. Federal Deposit Bank (FDIC). “Also, financial institutions generally do not insure the contents of safe deposit boxes. If you want to protect valuables in a safe deposit box or home safe, talk to your homeowner’s or renter’s insurance agent about adding coverage under these policies.
It’s best to use safety deposit boxes to store important documents rather than items like your grandmother’s diamond ring or pearl necklace — and you should put the cash in a checking or savings account where up to $250,000 per account is covered by FDIC insurance. ). “Good candidates for safe deposit boxes include originals of key documents, such as birth certificates, title deeds, car titles, and U.S. Savings Bonds that have not been converted to electronic securities,” the FDIC advises. “Other possibilities for the fund include family memorabilia, valuable collections, photos or videos of the contents of your home for insurance purposes, and photographs that cannot be replaced.”
Safety deposit boxes are vulnerable to fire, theft or flood damage, so it’s a good idea to keep items in plastic bags or other waterproof containers for added protection. “Be careful not to use your bank’s safety deposit box to store anything you may need to access quickly or when the bank is not open,” the FDIC adds. “This may include passports and original copies of your ‘powers of attorney’ allowing others to conduct business or make decisions about medical care on your behalf.”
As the FDIC notes, you won’t be able to access a safe deposit box quickly. The bank will have one key and you will have another, and the chest can only be opened with both keys. You’ll only be able to access the box when the bank is open, so it’s not the best place for something like a passport, which you might need to get quickly to visit a sick relative, for example. Since many banks are closing some of their physical branches, your fund may not be so soon. Finally, safe deposit boxes can cost up to $100 per year, based on the size of the fund.
Security, like charity, begins at home. One of the best places to store jewelry that has both sentimental and financial value is in a fireproof safe that is mounted to the floor and either hidden or disguised as something else. Security cameras that provide a live feed to your phone are another layer of security. And of course, you can include these items in your homeowners insurance. While no amount of money can replace items of sentimental value — like pieces of jewelry that have been in your family for many years and that belonged to your beloved relatives — it certainly doesn’t hurt.
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