What to Put in a Safety Deposit Box and What to Avoid

A safe deposit box offers a secure, off-site location for safeguarding important personal and financial items. These boxes are typically located within the vaults of financial institutions, providing robust protection against theft, damage, or loss. Their primary purpose is to secure irreplaceable possessions and critical documents outside your home.

Documents and Valuables to Store

Safe deposit boxes are ideal for housing items difficult or impossible to replace, those with high monetary or sentimental value, or items critical for legal and financial purposes. Irreplaceable personal documents, such as original birth certificates, marriage licenses, divorce decrees, death certificates, adoption papers, and military discharge papers (DD-214), are suitable. Social Security cards and passports, if not frequently needed for travel, can also be stored securely.

Financial and legal documents challenging to reconstruct are also prime candidates. Original wills and trusts, property deeds, and vehicle titles benefit from this heightened security. Physical stock certificates, bonds, life insurance policies, and original paper copies of home insurance policies are appropriate, as replacing these can involve significant time and effort.

Valuable items and collectibles with high worth or sentimental attachment should be considered. Heirloom jewelry, rare coins, precious metals, valuable stamp collections, and small, rare artworks are well-suited due to their inherent value and difficulty of replacement. Sensitive digital backups, like external hard drives containing critical family photos or documents, can also be stored to protect against data loss from home-based disasters.

Items to Avoid Storing

While safe deposit boxes provide robust security, certain items are not recommended due to accessibility issues, lack of insurance coverage, or legal prohibitions. Documents needed frequently, such as passports used often for travel, medical directives, powers of attorney, and living wills, should not be stored. These documents require immediate access by designated individuals or emergency personnel, which is not feasible given bank operating hours and access procedures.

Storing illegal or hazardous materials is prohibited by financial institutions. This includes firearms, explosives, illegal drugs, or any substances that could damage the box or property. Banks maintain strict policies against such items to ensure the safety and security of their premises and other customers’ belongings.

Cash is another item not advised for safe deposit box storage. Cash held in a safe deposit box is not insured by the Federal Deposit Insurance Corporation (FDIC), which only covers deposit accounts like checking or savings accounts. Additionally, cash stored in a safe deposit box does not earn interest, unlike funds held in a bank account, making it a less financially efficient storage method.

Items already fully insured and easily replaceable might not require the specialized security of a safe deposit box. While safe deposit boxes offer physical security, they do not replace insurance coverage for financial value. Standard electronics or other items covered by comprehensive home insurance policies might be adequately protected without occupying valuable safe deposit box space. Many documents now exist digitally and can be securely stored online with strong encryption or on encrypted drives at home, reducing the need for physical space.

Choosing and Using a Safe Deposit Box

Choosing a Safe Deposit Box

Selecting a safe deposit box involves several considerations to ensure it meets your needs. The financial institution’s location, whether a bank or credit union, and its proximity to your home or work are important for convenient access. Institutions offer a range of box sizes, from small (around 3×5 inches, costing $10-$50 annually) to larger options (10×10 inches, costing hundreds of dollars annually). Assess the volume of items you intend to store to choose an appropriate size.

Understanding rental costs and fees is important. These include an annual rental fee and may involve a key deposit. Contents of safe deposit boxes are not insured by the bank or FDIC. Therefore, discuss adding a personal articles floater or rider to your homeowners or renters insurance policy to adequately cover the value. Inquire about the financial institution’s access policies, including operating hours, holiday closures, and initial requirements for authorizing who can access the box.

Using and Accessing Your Safe Deposit Box

Once a safe deposit box is rented, using and accessing it follows established procedures. The initial step involves signing a lease agreement with the financial institution, outlining the rental terms and conditions. You will receive one or two keys to your box, which must be kept secure. Losing a key can result in fees for replacement or, if both keys are lost, the bank may need to drill open the box, incurring significant costs, often ranging from $150 to $500.

To access your box, you will need to present identification and sign a log. A bank employee will then escort you to the vault where the box is located, providing private access to manage your contents. If you wish to allow others to access your box, such as family members or trusted representatives, you must formally add them as authorized users through the bank’s process, which requires their identification and signatures. In the event of the renter’s death, accessing the contents can become more complex. Access by executors or heirs often requires presenting a certified copy of the death certificate and may necessitate specific court orders or a will, depending on the jurisdiction and whether the box was solely or jointly owned.