Safe deposit boxes are secure storage compartments offered by banks or other financial institutions to their customers. These are private, individually assigned boxes that customers can rent to store valuable items and documents that require high security. Typically located in a bank’s vault or another highly secure area, these boxes come in various sizes to meet different storage needs. Constructed from durable materials like metal and equipped with locks and keys or advanced electronic locking systems, access is exclusively granted to the authorized renter or co-renters, ensuring privacy and confidentiality.

Cost of Safe Deposit Boxes

The cost of renting a safe deposit box depends on its size, the bank’s location, and the institution’s policies. Generally, you can expect to pay between $50to$300 annually for a safe deposit box. Factors influencing the cost include the box’s size, the bank’s location (with urban areas typically charging more than rural ones), and bank policies (some banks offer discounts to customers who have other accounts with them).

Banks Offering Safe Deposit Boxes

While some banks, like Chase Bank and Bank of America (members of the FDIC), have decided to discontinue offering safe deposit box services due to high costs and limited space in smaller branches, other banks and credit unions still provide them. For instance:

• First Bank & Trust: Prices range from $20peryearforthesmallest3x5boxto$65 per year for a large 10×10 box.
• Columbia Bank: Prices range from $25peryearforthesmallest2x5boxto$120 per year for the largest 10×10 box.
• Erie Federal Credit Union: Prices range from $15peryearforthesmallest3x5boxto$100 per year for the largest 10×10 box.

Choosing a Safe Deposit Box: What to Consider

When selecting a safe deposit box, consider the following key factors to ensure it meets your specific needs and requirements:

• Size: Determine the size you need based on the items you plan to store. Ensure the box can comfortably accommodate your valuables.
• Accessibility: Evaluate the bank’s accessibility options, including business hours and compatibility with your schedule. Some banks may offer extended hours or 24/7 access to safe deposit boxes, which can be convenient if you need frequent or after-hours access.
• Security Measures: Inquire about the security measures in place to protect the safe deposit boxes. Ask about monitoring systems, access control protocols, and the overall security level of the vault or safe deposit box room.
• Location: Consider the location of the bank or financial institution housing the safe deposit box. Choose a convenient location, taking into account factors such as distance from your home or workplace.
• Insurance Coverage: Clarify whether the bank provides insurance for the contents of the safe deposit box. Understand the terms and limitations of any offered insurance. It’s also important to consult your own insurance provider to determine if your homeowner’s insurance policy or a separate valuable items policy covers items stored in the safe deposit box.
• Rental Costs: Inquire about the fees associated with the safe deposit box. Understand the annual cost and any additional fees that may apply. Compare the costs to the value and importance of the items you plan to store to determine if it fits your budget.

Insurance for Safe Deposit Boxes

Typically, the institution providing the safe deposit box does not insure the box or its contents. Items stored within are usually not covered by the institution’s insurance, meaning the bank generally does not compensate renters for the value of lost, damaged, or stolen items.

Renting a Safe Deposit Box: Pros and Cons

Here are the main advantages and disadvantages of renting a safe deposit box:

Pros:

• Enhanced Security: Offers a highly secure environment for storing valuable items and important documents.
• Theft Protection: Significantly reduces the risk of theft.
• Disaster Prevention: Designed to withstand various types of disasters, such as fires, floods, or natural calamities.
• Privacy and Confidentiality: Provides a degree of privacy and confidentiality.

Cons:

• Limited Access: Typically accessible only during bank business hours.
• Rental Costs: Annual rental fees apply.
• Lack of Insurance: Contents are usually not insured by the bank.
• Limited Space: Available sizes may not accommodate large or bulky items.

What People Store in Safe Deposit Boxes

Commonly stored items include important documents (e.g., property deeds, birth and marriage certificates, passports), financial and investment records, jewelry and valuable items, digital storage devices with important data, memorabilia, and precious metals.

What Not to Store

Due to legal restrictions, safety concerns, or bank policies, certain items are generally prohibited, including perishable items, hazardous materials, firearms or explosives, illegal substances, and items that may violate the terms and conditions of the safe deposit box rental agreement.