What is a Safe Deposit Box or Safety Deposit Box?

 

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.

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