What is a safe deposit box?
A safe deposit box is a container—normally a metal box—that you rent from a bank or a credit union to store important documents and valuables. It is kept in the bank’s vault, and is also known as safety deposit box.
Why is a safe deposit box needed?
Even with more and more documents being digital, a safe deposit box could still be useful for storing valuables since it is way more secure than most homes. A bank’s vault is well protected using concrete walls, alarms, video cameras, and sophisticated locks, and it is also built to withstand fire, floods, hurricanes and other natural disasters.
How big are safety deposit boxes?
The size usually ranges from 3-12 inches in width and height and the depth is around 1-2 feet.
What should be kept in a safe deposit box?
Important, hard-to-replace documents – like the deed to your home, physical stock certificates, original birth certificate, etc – are ideal for storing in a safe deposit box. Other valuables – like jewelry – can also be stored there.
What should not be kept in a safe deposit box?
Since safety deposit boxes can be accessed only during banking hours, anything you might need urgently – like your passport or spare keys – should not be stored there.
How much does renting a safe deposit box cost?
The rent largely depends on its size. It can be anywhere from $20 per year for a 3inch by 3inch box, to a couple hundred dollars per year for larger boxes. However, some banks offer a safe deposit box for free if you meet certain requirements, like maintaining a minimum balance with that bank.
Are safe deposit boxes insured?
Even if a bank is FDIC insured, the safe deposit boxes maintained by it are not insured by FDIC. But you can get the contents of your safe deposit box insured through your homeowner’s insurance policy, or an independent insurance policy.
Podcast: What is a Safe Deposit Box or Safety Deposit Box
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about a Safe Deposit Box or Safety Deposit Box: What is a Safe Deposit Box, Why is a safe deposit box needed, How big are safety deposit boxes, What should be kept in a safe deposit box, What should not be kept in a safe deposit box, How much does renting a safe deposit box cost, Are safe deposit boxes insured, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-a-safe-deposit-box-or-safety-deposit-box/