“My jewelery has a strong sentimental value to me, which makes it irreplaceable.” (The subject of the photo is a model.) – Getty Images/iStockphoto
Is it safe to keep valuables in a bank safe deposit box? It sounds like a silly question, but about a year ago I went to a local bank and read the agreement for renting a box. I read that the bank discourages people from storing jewelry and coins in the boxes, so I didn't rent one. I remember the representative explaining that two keys were needed to open the box.
Are banks responsible for lost items? I imagine, for privacy, there are no cameras in the safe deposit box area. I have jewelery at home, but I don't feel safe keeping it there. I keep hearing about break-ins in my neighborhood. Am I overthinking this? Are there other options for keeping valuables safe? My jewelery has a strong sentimental value to me, which makes it unique.
Safe deposit boxes are best used to store important documents rather than items such as your grandmother's diamond ring or pearl necklace. – MarketWatch illustration
There are disadvantages to safe deposit boxes.
The Federal Deposit Insurance Corp. advises users don't confuse safe deposit boxes with custodial accounts. The first is a storage area provided by the bank, “so the contents, including cash, checks or other valuables, are not covered by FDIC deposit insurance if damaged or stolen,” he said. r FDIC. “Also, financial institutions generally do not insure the contents of safe deposit boxes. If you want protection for the valuables in your safety deposit box or home safe, talk to your homeowner's or renter's insurance agent about adding coverage under these policies.”
Safe deposit boxes are best used to store important documents rather than items like your grandmother's diamond ring or pearl necklace—and you should put cash in a checking or savings account that is FDIC-insured up to $250,000 per account. “Good candidates for a safe deposit box include original key documents, such as birth certificates, property deeds, car titles and US savings bonds that have not been converted into electronic securities,” the FDIC advises. “Other possibilities for the box include family keepsakes, valuable collections, photos or videos of the contents of your home for insurance purposes, and unique photos.”
Safe deposit boxes are vulnerable to damage from fire, theft or flooding, so it's a good idea to keep items in plastic bags or other waterproof containers for further protection. “Be careful not to use your bank's safe deposit box to store anything you may need to access quickly or when the bank is not open,” adds the FDIC. “That could include passports and originals of your 'powers of attorney' that authorize others to transact business or make decisions about medical care on your behalf.”
As the FDIC points out, you will not be able to access a safe deposit box in an emergency. The bank will have one key and you will have another, and the box can only be opened with both keys. You can only get to the box when the bank is open, so it's not the best place for something like a passport, which you might need to get your hands on quickly in order to visit a relative sick, for example. As many banks are closing some of their brick and mortar branches, your box may not be the only one nearby. Finally, safe deposit boxes can cost up to $100 per year, based on the size of the box.
Safety, like charity, begins at home. One of the best places to store jewelry that has sentimental and financial value is in a fireproof safe that is bolted to the floor and either hidden or disguised as something else. Security cameras that provide a live feed to your phone are another layer of security. And of course, you can include these items on your home owner insurance. Although no amount of money can replace Items with sentimental value – such as pieces of jewelery that have been in your family for many years and belonged to dear relatives – it certainly doesn't hurt.
