What Is A Safety Deposit Box, And How Do I Properly Use One?

By Author: Damien Alcock
Total Articles: 143
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No doubt, the home is one place that offers excellent storage space for your belongings and properties. Still, not all belongings or properties are safe at home, including items you place a high value on. These belongings can be items of non-monetary value, sentimental value, or monetary value, and there are better options than keeping them at home for safe storage. This is because the home is where the items are exposed to unexpected events, like theft, fire outbreak, getting lost, or worse.


Various safer storage options exist for storing these items outside the home, including safe or safety deposit boxes. This storage medium has existed for a while, and it should be an option you consider for storing valuable items. This article will outline the importance of a safety deposit box and how to use it properly.


What is a Safety Deposit Box?
A safety deposit box is a storage facility in financial institutions for the safe storage of items. It is a metallic box placed in a vault to safeguard the box and its contents. The option of safe deposit boxes ...
... for safe storage is losing popularity, but the number of banks offering safe deposit box services is more than those that do not. Hence, safe deposit boxes are still in high demand.


How and Where to Get a Safe Deposit Box?
Financial institutions like banks are ideal for storing money and helpful in storing valuable items through the safe deposit boxes they offer. Hence, if you are looking for where to find a safe deposit box, start your search from your local bank. Financial institutions should be your go-to for a safe deposit box. These financial institutions could be your bank or a credit union.


On the question of how to get a safe deposit box, you can access a deposit box by renting it after you have found a financial institution with a safe deposit box. Specific factors influence the rental fee for a safe deposit box. These factors include;

The box's size


The leasing period (the least rental/leasing period in most financial institutions is a year).


The item to be stored


The number of items to be stored

How Do Safe Deposit Boxes Work?
The safe deposit boxes are leased out to clients by financial institutions. These institutions follow strict procedures when renting out a safe deposit box and have rules and policies that govern the leasing contract.


These institutions use a dual-key system to guide and control access to the safe deposit boxes rented out to clients. A client is given a key to the safe deposit box, which can be a physical or digital key, based on what the institution uses. However, most safe deposit boxes today use a digital key as a passcode or the client's biometrics.


The second key with the bank is a digital key used to unlock the vault where the safe deposit boxes are kept when a client requests access. This system ensures the institution knows who accesses a safe deposit box. Also, the rules and policy governing the leasing contract ensure that there is some form of authorization before access to a safe deposit box can be granted. This authorization is given to the person renting the safe deposit box, and this person has the liberty to choose who else can access the safe deposit box.


The rules and policy also explain the danger associated with authorizing someone other than you to access the safe deposit box, as the institution cannot limit access to the safe deposit box. The contract also outlines the liabilities associated with using the safe deposit box, as no insurance scheme is provided to protect the box's contents. Hence, you are advised to take extra measures to protect the box's contents from unplanned events.


The contract also explains what happens to your belongings when the contract period elapses. The financial institution usually declares the safe deposit box dormant, and its contents become unclaimed property. Hence, you should inform the institution beforehand if you do not intend to renew the rent for a safe deposit box.


How to Properly Use a Safe Deposit Box?
Yes, a safe deposit box offers the much-needed storage space to keep your valuable items safely, but it does not offer protection from every factor. Hence, there are measures you must take when storing your valuables in a safe deposit box to ensure they boast high and excellent security. They include:

Decide what must be stored: Some rules govern what should and should not be stored in a safe deposit box. They include:


Avoid storing single-copied documents: Before storing a document in a safe deposit box, ensure you have duplicates because the original copy should be stored in the deposit box.


Avoid storing uninsured items in the safe deposit box: These financial institutions do not offer insurance on the items stored in a safe deposit box, so there is no guarantee of compensation if the stored item gets damaged in the event of a disaster. Hence, you should have the items insured before storing them and take measures to protect them from any disaster. The measures can include using fire and waterproof packaging.


Avoid storing items that you might need urgently: once an item is stored in a safe deposit box, you do not have unlimited access to the item. Your access is conditioned by the institution's availability and distance from the financial institution.


The institution should permit the item: These financial institutions have rules on what can and cannot be stored in their safe deposit boxes. Hence, you should check that the institution permits what you want to store.

Decide who you can trust to access the deposit box: It is an excellent idea for multiple people to rent a safe deposit box, so you can have someone pick up something from the box when you are not close by. However, the person should be someone you can trust


Arrange an appointment with the bank: This is done so the financial institution can confirm your identity as mandated by law before you can rent a safe deposit box. You should also bring along the trusted individual you wish to grant equal access to the safe deposit box so that the institution can confirm the individual's identity.


Open an account and sign the agreement: This agreement details how long the rental period will last, the cost of renting the safe deposit box, and who is given access to the box. You should carefully review the contract and sign it.


Get the key: Once you have collected the key and put your valuables in the box, compile a list of the box's contents and take pictures of it and its contents. The list and pictures should be kept safely with the keys.

Conclusion
A safe deposit box is a storage option you can use to store your valuables, although it does have its shortcomings. Luckily, this article has outlined how to properly use the box for safe storage and minimise its shortcomings.