Safe Deposit Box: What You Need To Know

If you have been looking for a place to keep your documents, collectibles, family heirlooms and other valuables secure, consider a safe deposit box rental. Perhaps you saw a movie with a spy rifling through several fake IDs and different currencies in a safety deposit box and got curious about which bank has the cheapest option or what banks have a safety deposit box near you.

Quick Take: What Safe Deposit Boxes Are and How They Work

The benefits of a safe deposit box include providing a secure place to hold your valuables in your bank, credit union or other financial institution. Think of it as putting any contents of a safe in your home in a much more secure location. Here are a few key takeaways to consider when renting a safe deposit box:

• A safety deposit box is an individual locked container stored inside the vault of a federally insured bank by the Federal Deposit Insurance Corporation or FDIC. However, items inside the box are not insured.

• The banks often use a dual key system, where the bank or credit union controls the key to unlock the vault and the renter controls the key to their safety deposit box.

• Your box will come with either a key or a code to access your items and only you or someone you authorize can access your safe deposit box.

• If you lose your key, contact your bank immediately. For deposit boxes, banks have procedures in place to help you gain access to your box safely.

What To Keep In Your Safe Deposit Box

Are Safe Deposit Boxes Safe and Are Your Belongings Secure?

Safe deposit boxes are generally very secure. They are stored in protected areas of the bank, often in vaults armed with alarms, cameras and security guards. However, nothing is completely risk-free. Keep in mind these boxes are in a federally insured building but the items in your box are not FDIC insured as your checking or savings account would be.

How To Rent a Safety Deposit Box

Find a location near you with a safety deposit box available for the time you need it. Be sure the bank’s hours work in your schedule so you can access your items when needed.

Next, fill out a rental agreement. This will outline what is allowed in the safety deposit box, the fees and if there is any insurance available. After signing the rental agreement and verifying your identity, you’ll get the keys to the safety deposit box.

Banks With Safety Deposit Boxes Near Me

The cost of your safe deposit box varies depending on the size of the box and the bank’s location. It can range from a few dollars to hundreds of dollars per year. Below are a few examples of safety deposit box prices at banks that still offer the service that could likely be in your area, check out the table to see some of the more affordable options GOBankingRates found:

Are Bank Safety Deposit Boxes Worth It?

This depends on what is stored in it. Different people have different situations. A safety deposit box could be very useful for someone who often has people in their home when they aren’t present, like shared housing or for people who frequently move within the same area.

Here are more pros and cons of using safety deposit boxes.

Pros of Using Safety Deposit Boxes

• Only the box renter and the people they authorize can access the items inside.

• Items in a safety deposit box cannot be misplaced.

• Banks and credit unions have several layers of security that homes may not have. It is easier for a thief to steal from a home than from a bank or credit union.

• Safety deposit boxes are cheaper than home safes in the short term.

• If you store any items in a safe at home they could suffer from water damage whereas this is less likely at a bank. (If you do decide to store items at home be sure to hermetically seal them or keep them in a plastic bag in case your house experiences flooding or plumbing issues.)

Cons of Using Safety Deposit Boxes

• Safety deposit boxes can only be accessed when the bank or credit union is open, not in the middle of the night or on holidays.

• Vaults are not disaster-proof. Items should be in waterproof and fireproof bags.

• Items in safety deposit boxes are not covered under the FDIC and may need additional insurance.

• If the rent isn’t paid, the owner may lose the items in the safety deposit box.

Are There Better Options Than a Safety Deposit Box?

Since no one can predict the future, it is hard to say what would be better. Even in areas with a high risk of natural disasters, items would be better off in a safety deposit box if the renter has people they don’t trust in their home.

An alternative to a safety deposit box is a fireproof home safe. These safes are small and fairly inexpensive. Though it would take years of safety deposit box rental to equal the same cost as buying a home safe, if long-term use is the goal, then a home safe could be cheaper.

Fireproof and waterproof document safes are portable and rated to keep documents, flash drives or other small items safe during house fires. Many can also keep items safe when submerged in water from floods or pipes bursting.

For bigger items or added security, a safe that bolts to the floor is an option as well. They are more expensive, but they cannot be carried out of the house if someone breaks in.

Final Take To GO

Safety deposit boxes are not perfect for every situation or item. For valuables that won’t need to be accessed immediately or unexpectedly, a safety deposit box is a good idea. They are also a secure way to protect your valuables and important documents. They offer peace of mind knowing your items are safe from theft, fire, or other disasters.

Caitlyn Moorhead contributed to the reporting for this article.

Information on promotions is accurate as of April 9, 2024. Additional requirements may apply. Offers and terms are subject to change.

This article has been updated with additional reporting since its original publication.

This article originally appeared on GOBankingRates.com: Safe Deposit Box: What You Need To Know