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Lori Zaino
Lori Zaino
Contributor
Lori is a freelance writer and credit cards and travel rewards expert. Her work has appeared in publications like Forbes, CNN, NBC, The Points Guy, Insider, Upgraded Points, The Infatuation and many others. An avid traveler, she’s bilingual in English and Spanish and currently resides in Madrid, Spain.
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Claire Dickey
Claire Dickey
Senior Editor
Claire is a senior editor at Newsweek focused on credit cards, loans and banking. Her top priority is providing unbiased, in-depth personal finance content to ensure readers are well-equipped with knowledge when making financial decisions.
Prior to Newsweek, Claire spent five years at Bankrate as a lead credit cards editor. You can find her jogging through Austin, TX, or playing tourist in her free time.
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Whether you’re an avid stamp collector or simply want a safe place to park your great-grandma’s earrings or the deed to your home, safe deposit boxes are ideal locations to keep important things, offering an extra layer of security that can give you added peace of mind.
However, when considering what to put in a safety deposit box, there are certain things that are best to store there, while other things are best tucked away in a secure place at home or elsewhere. Insurance is also a factor, and it’s important to understand what kind of access you’ll have to your safe deposit box. This article explains what safe deposit boxes are, how much they cost and what you should and shouldn’t keep inside one.
What Is a Safe Deposit Box?
A safe deposit box is an individual metal box where you can store items. It’s kept inside a secure vault at your bank or credit union. Typically, safe deposit boxes come in different sizes, anywhere from a few inches to up to a few feet long, though 2 x 5 inches and 10 x 10 inches are common sizes for a box. Safe deposit boxes require a key to open them—the bank has one key, and the customer has another key.
Although some banks are doing away with safe deposit boxes, some banks still offer them as an alternative to keeping important items and documents in your home. Just make sure to store your items in fireproof and liquid-proof bags, as no bank is fully immune to fire or flooding, and the FDIC and most banks don’t insure the contents of safe deposit boxes.
How Much Is a Safe Deposit Box?
Since safe deposit boxes vary in size, the cost of them varies, too. Most banks charge at least $15 per year for a small box, but some can charge into the hundreds annually, depending on the size of the box. Pricing may vary by location and branch, and the safe deposit box rent will be charged annually in most cases.
Popular banks like Bank of America and Wells Fargo still rent safe deposit boxes, but Chase isn’t renting out any new safe deposit boxes. In most instances, you’ll have to hold some kind of bank account at the bank where you want to get a box.
What You Should Keep In a Safe Deposit Box
A good rule of thumb when deciding what to keep in a safe deposit box is to keep things in there that need an added layer of protection but that you won’t need suddenly or in an emergency. Remember that banks—especially bank vaults—have limited hours, so you only want to keep things in there that you won’t suddenly need on a holiday or Sunday when a bank or its vaults may be closed.
- Family heirlooms: Save keepsakes or jewelry—just make sure to insure them.
- Certain important documents: Put in birth certificates or property deeds/titles.
- Collectibles: Store baseball cards, stamps or coins.
- Photos and videos: Keep memorabilia safe, or hide away videos and pictures of your home and its contents for insurance purposes.
What You Should Not Keep In a Safe Deposit Box
You don’t want to store items that you may need immediately since banks and bank vaults have limited opening hours. Although safe deposit boxes may be your safest option, do know that they’re not entirely disaster-proof, and the contents aren’t insured (but more on that below).
- Your passport: You may need it suddenly.
- Cash: Not only is it not insured and you may need it right away in case of emergency, your money isn’t earning interest in a safe deposit box. Some banks may not even allow cash in safe deposit boxes, depending on the terms and conditions.
- Wills or Power of Attorney: If you pass away, your box may be locked and parties may not be able to access the box without a will.
- Illegal items: Don’t put guns, ammunition, weapons, liquids or hazardous or explosive items in the box, or the bank can revoke your box, and you’ll lose the contents.
Who Can Access My Safe Deposit Box?
You get to decide who can access your safe deposit box. Just remember that anyone who co-leases the box with you has access to everything inside and can open the box, take things out of the box and put things in any time they want. Make sure whoever you co-rent the box with is someone you trust, as the terms and conditions for most security deposit boxes state that banks aren’t liable for issues between co-lessees.
Are Safe Deposit Boxes Insured?
Safe deposit boxes and their contents aren’t insured. According to the FDIC, only money in deposit accounts at insured institutions in rare situations (like bank failure) is insured.
If you want insurance for whatever you put in the safe deposit box, you’ll have to get it via your homeowner’s or renters insurance. And for peace of mind, store your items in fireproof or waterproof bags to protect against disasters like fire or flooding.
It’s also important to pay your yearly rent on the box. If not, you could risk losing the box and all the contents inside of it if you don’t pay.
Frequently Asked Questions
What Happens to a Safe Deposit Box and Its Contents if the Owner Dies?
Gaining access to a safe deposit box of a deceased person can be complicated. Any joint owners with keys can access the box, as well as any trustees or personal representatives. Anyone else with a key to the box may be able to open it if they provide specific documents for the bank. Access can become complicated and may require court assistance/permission if the will or legal estate planning documents are inside the box, so it’s best to store these documents elsewhere.
Can You Keep Cash in a Safety Deposit Box?
It’s best not to hide cash in a safe deposit box. It won’t be insured, and you won’t gain interest on your money if it’s in a box. Some banks don’t even allow cash to be stored inside a safe deposit box. Plus, if you need access to the money quickly in an emergency, if the bank or bank vault isn’t open, you’ll have to wait until you can open the box and get it, which could be complicated on weekends or holidays.
What Are the Disadvantages of a Safe Deposit Box?
The contents of your box aren’t insured by the FDIC, which means if there are any disasters, whatever is in your box isn’t protected. Access may be limited due to the bank or bank vault’s opening hours, and you could also lose whatever is in your box if you fail to pay the rent or fees.
What Are the Alternatives to a Safe Deposit Box?
One of the most common alternatives to a safe deposit box at a bank is an at-home safe. There’s also private vault storage, which is similar to a safe deposit box, but it’s not at a bank. If you’re looking to save cash, get a better return by putting it in a savings account or certificate of deposit (CD) account, so you can earn interest on your money while it’s safely stored away.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Lori Zaino
Contributor
Lori is a freelance writer and credit cards and travel rewards expert. Her work has appeared in publications like Forbes, CNN, NBC, The Points Guy, Insider, Upgraded Points, The Infatuation and many others. An avid traveler, she’s bilingual in English and Spanish and currently resides in Madrid, Spain.
Read more articles by Lori Zaino
