kali9 / Getty Images
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
A safety deposit box, also known as a safe deposit box, is a secure storage container, housed within a bank or a financial institution’s vault. These boxes can provide you with a high level of security for your valuable possessions and other important documents. Though maybe not as dramatic as a fast-paced spy thriller would indicate, these boxes are highly functional whether you want to keep all your passports and foreign currency or just other items you want to protect from theft, fire or other potential threats.
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 the 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 bank insured 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.
- Many banks near you will have a safe deposit box option. To rent one you can fill out a rental agreement that outlines your expected fees, insurance and other rules to follow. After signing the rental agreement and verifying your identity, you’ll get your key.
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 like your savings or checking account would be.
Safety Deposit Box: Pros and Cons
Short of having a home safe, to keep items from being stolen or destroyed, many people opt to keep their valuables stored in a safe deposit box. Here are some benefits and drawbacks:
| Pros | Cons |
|---|---|
| High security: Banks offer a much higher level of security than most home safes. | Limited accessibility: You can only access your box during the bank’s operating hours, which can be inconvenient. |
| Protection from disasters: Items are protected from common household disasters such as fires and floods. | Safe deposit box cost: There is an ongoing fee associated with renting a safety deposit box. |
| Privacy: Only you and your authorized individuals have access to the contents. This is beneficial if you live with roommates you don’t know or trust. | No Insurance: Items stored in safety deposit boxes or bank vaults are not typically insured by the bank, so separate insurance might be necessary. |
Safe Deposit Box: Key Features
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. Sometimes peace of mind goes a long way to fixing your finances. Here are the essential features to consider if you are wanting to rent a safe deposit box:
- Security: Safety deposit boxes are typically located in a highly secure area of a bank, often within a vault. Access to the vault is strictly controlled, requiring several layers of security, including identification, keys, codes and sometimes biometric verification.
- Privacy: Access to the contents of a safety deposit box is usually limited to the owner and any authorized individuals. Banks provide private areas for customers to access and view their box contents, ensuring a high level of privacy.
- Variety of sizes: These boxes come in various sizes to accommodate different needs. Whether you need to store small items like jewelry and passports or larger items like legal documents and collectibles, there’s usually a size that fits your requirements.
- Lease agreement: Renting a safety deposit box involves an annual fee, which can vary based on the size of the box and the bank’s location. While not typically expensive, the fee is a consideration for those thinking about long-term storage solutions.
Safety Deposit Boxes: Dos and Don’ts
| Do Store These Items | Don’t Store These Items |
|---|---|
| Important documents such as birth certificates, passports, property deeds and wills. | Don’t store cash as it is not insured in a safe deposit box. |
| Valuables such as jewelry, rare coins and family heirlooms. | Original copies of documents you might need like your will or power of attorney. You could store copies instead as a failsafe. |
| Digital storage devices such as USB drives, external hard drives and CDs or DVDs with important data. | Medical directives or funeral instructions shouldn’t be stored as they would not be accessible to family members in case of an emergency. |
| Other valuable items such as stock certificates, valuable artwork or sentimental items. | Hazardous materials. |
Final Take To GO
The bottom line is that even if you are not an international spy on the go, safety deposit boxes can offer you a highly secure option to protect important documents and more. They offer you the ability to know your items are safe from theft, fire or other disasters.
