- Many banks and credit unions offer safe deposit boxes for a fee.
- Bank safe deposit boxes may be ideal for heirlooms or documents you don't want to store at home.
- However, they may not be accessible outside of bank hours and items are not automatically insured.
Safe deposit boxes are one of the first resources people turn to when looking for a place to safely store valuables. Many banks and credit unions offer safe deposit boxes at branch locations for a fee.
Find out what types of items safe deposit boxes are best for and how to manage one properly.
What are safe deposit boxes?
A safe deposit box is a small storage container that you rent from a local bank branch or credit union. It stays in the bank vault and can only be accessed by the renter or anyone they have given authorized permission to, including bank employees.
You might use safe deposit boxes to store personal documents, valuable jewelry or collections, and other sentimental items. But keep in mind that your access to the box will be limited to the bank's regular business hours.
Safe deposit boxes come with added security that you may not have at home, since they're located in bank vaults with 24/7 surveillance.
Choosing a safe deposit box
First, contact a local branch to see if any safe deposit boxes are available.
Once you've narrowed down the place where you'd like to rent out a safe deposit box, you'll fill out a rental agreement and choose what size box you need.
A small 3-by-5-inch safe deposit box could cost between $10 to $60 per year, depending on the bank location. A large safety deposit box that's 10 inches by 10 inches might be $50 to $165 per year. Some financial institutions may give you the option to pay monthly or annually.
The rental agreement form will outline what you can or can't keep inside a safe deposit box, whether you may add co-renters or co-lessees, and what the bank is liable for in the event something happens to your belongings.
After reading through the agreement, verifying your identity, and paying any rental fees, you'll get your keys and have access to your safe deposit box. In the future, you will need to set an appointment to access your items.
If the process of renting out a safe deposit box seems inconvenient, you may instead buy a safe deposit box and store it in your home. However, you'll likely need homeowner's insurance to protect your valuables since homes aren't as secure from theft or natural disasters as banks.
What to store in a safe deposit box
James J. Burns, a CFP® professional and president and founder of JJ Burns & Company, says a safe deposit box might be ideal if you're storing important papers such as contracts or valuable assets like family heirlooms or expensive jewelry that may not be well protected in your home.
Consider storing hard to replace documents such as marriage and birth certificates and property records, too.
What not to store in a safe deposit box
You should never keep cash or a will inside of a safe deposit box, Burns says. A safe deposit box isn't a good place for a will because it isn't easily accessible, he says, so it'd be better to store a copy instead of the official document.
Also avoid storing cash in a safe deposit box. It's better to use a savings account or CD, since your funds are federally protected, earning interest, and easily accessible.
Accessing your safe deposit box
Most safe deposit boxes require two keys to open. The renter has one key and the bank has the other.
Most banks require you to make an appointment during regular business hours to access the contents of your safe deposit box and will record the date and time of each visit for security purposes. You will need to bring your key to the appointment and show at least one form of identification.
Accessing your safe deposit box with co-renters
If you add a co-renter, or co-lessee, to your agreement, they will have the same level of access to your safe deposit box as you do. But some banks may require both owners to be present to access the box.
If you are considering giving a key to a family member or partner, make sure it's someone you trust.
Safety and security considerations
Keep in mind valuables kept in a safe deposit box are not FDIC insured. When a bank says it's FDIC insured, it means money deposited in a bank account is insured if a bank shuts down. That means safe deposit boxes could be compromised in a fire, flood, or robbery.
To protect the contents of your safe deposit box, you might consider purchasing additional insurance protection through your homeowner's or renter's policy.
Burns recommends thinking carefully about what you want to store in your safe deposit box, your purpose for storing it there versus at home, and how long you plan to keep it.
Burns suggests reviewing your safe deposit box annually to ensure your valuables are secure and well-kept.
Safe deposit box FAQs
It can cost anywhere from $10 to $150 or more to rent a safe deposit box at your local bank or credit union. Rental fees vary by bank location and box size.
Bank employees and any co-renters can access your safe deposit box.
If a renter dies, the contents of their safe deposit box are included in their estate and handled according to their will, or according to state law in the absence of a will.
Banks don't typically insure safe deposit boxes but you can set up your own insurance coverage through a homeowner's or renter's policy.
Alternatives to using a safe deposit box include a home safe for physical items or a password-protected folder or secure hard drive for digital items.
