Do You Need a Safety Deposit Box?
Are you looking for a safe space to store some of your valuable items or important documents? Do you have sensitive information that can’t be kept in your office or home? If so, a safe deposit box could be a storage solution for you. Safe deposit boxes are available to rent at most Canadian banks and credit unions.
What is a safety deposit box?
A safety deposit box, sometimes called a safe deposit box, is a small locked container, typically made of metal, in which you can store documents or belongings. They are offered by many brick-and-mortar financial institutions.
These secure boxes are designed to withstand natural disasters such as flooding and fire. They are usually located in a vault or other area in a bank that is secured by alarms and strong locks.
You can rent a safe deposit box on your name only or jointly with other people. Safe deposit boxes come in a variety of sizes based on your needs and requirements. The fee, which is usually charged annually, depends on the institution and the size of the box.
Rental fees for safe deposit boxes in Canada typically start at $60 per year, though some credit unions charge lower fees for smaller boxes.
How to use a safety deposit box
A safety deposit box can be used to store items and documents either temporarily or for an extended period of time. They should be things that need more security or privacy than at-home storage options can provide. However, not everything can or should be kept in a safe deposit box.
Items to store in a safe deposit box
Most banks don’t publish specifics about what can or cannot go in a safety deposit box on their websites; you need to read the contract. However, some examples of items that are good to put in a safe deposit box include:
Family documents, such as birth certificates or marriage licenses.
Property deeds and titles.
Any mortgage documents.
Financial documents.
Personal and/or business contracts.
Insurance policies.
Inventory of personal possessions.
Valuables such as family heirlooms or jewellery (though remember that the bank typically doesn’t insure the contents of a safe deposit box).
Hard drives or USB flash drives containing backups of important digital data.
Items to avoid storing in a safe deposit box
The short answer? Anything that you might need to access immediately.
Since the safe deposit box is at a physical location owned by the financial institution from which you are renting, your access is limited to business hours. That means you should think carefully before locking away certain items, including:
Your passport.
Original versions or only copies of your will.
Valuables that are not insured.
Power of attorney documents.
Spare keys.
Perishables or liquids.
In addition, the following items are typically prohibited in a safety deposit box:
Cash.
Precious metals over a certain size or amount
Dangerous items, like a firearm or explosives.
Anything illegal, such as drugs.
If you are unsure of what can or can’t go into your safe deposit box, speak to your bank or check the terms and conditions of your lease.
How to rent a safe deposit box
If you are looking to rent a safe deposit box, do your research to get the best deal. Some things to consider include the size of the box you need, how much it costs and the location. You’ll want to rent a safe deposit box in a place that you can reach easily when needed, so be mindful of the financial institution’s hours of operation.
Once you have determined where you would like to rent a safe deposit box, you can visit the branch to get help with the process.
Note that some financial institutions offer discounts on safe deposit box rentals if you're already a banking customer or have a certain type of account.
Pros and cons of safety deposit boxes
Pros
Handy to know all your important documents and valuables are together somewhere safe in one place.
Convenient for storing anything that you don’t want family or roommates to see or have access to.
Hazard-proof storage means your items will be safe from disasters such as floods or fires.
Cons
Rent can be expensive.
Have to rely on the bank’s hours to access your items.
Not suitable for all valuables or important items.
Safe deposit box alternatives
Should you get a safe deposit box? Well, it depends. With online documents now being widespread and accessible, many people may choose to store digital copies of important documents themselves via a cloud service. You can also store copies at home on external hard drives or flash drives.
Another option is to buy a secure, fireproof lockbox to keep at home for any important items. Then you can access its contents at any time and won’t have to pay an annual rental fee.
Safe deposit boxes can still be a good option if you aren’t comfortable storing important files digitally or want to store valuables outside your home; however, it is important to note that they are not insured by the bank.
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