
Safety deposit boxes are private, secured storage containers you can rent at banks to store valuables and personal information like financial documents, collectibles, jewelry and family photos. Storing such items in a safe deposit box instead of at home reduces the possibility of losing irreplaceable items due to theft, fires, floods and other disasters. Safety deposit boxes are subject to several rules and regulations related to box storage, access and insurance.
Basic Safety Deposit Box Regulations
The federal government does not have laws governing what you can store in a safety deposit box. It's up to the bank to establish its own rules. The contract you sign when you rent a safe deposit box at a bank might include restrictions that prohibit the storage of certain items, like explosives and other dangerous objects. In practice, banks typically do not monitor what you put in safe deposit boxes, so it is up to you to abide by the rules stated in the contract. If you fail to pay rental fees on a safe deposit box, it can be reported as abandoned and the contents can be turned over to the state.
Who Has Access to the Safety Deposit Box?
Generally, you can choose who has access to your safe deposit box . The bank will allow you to nominate a number of key holders; these persons should be listed on the signature card for the rental of the box. If you are the sole renter of a safe deposit box, then only you and a power-of-attorney or agent you designate can access your box. When you rent a box jointly with another person, either of you can access the contents.
Bank Safe Deposit Box Rules After Death
Rules for who can access your safe deposit box change after you pass away. If you rent a box with someone else, the joint renter can still access the contents after you die. A power of attorney loses the ability to access a safe deposit box after your death. Instead, the executor or administrator of your estate – a person either you or the court appoints to handle your finances after you pass away – gains access to your safe deposit box. That person will record the contents of your box as part of your estate, use any cash or sellable assets to pay your bills and taxes, then distribute the rest of the contents to the beneficiaries named in your will.
You'll Need Your Own Insurance
The Federal Deposit Insurance Corp. insures deposits you make in normal bank accounts, but federal deposit insurance does not apply to safe deposit boxes, even if you use a box to store cash. Banks generally do not provide insurance for the contents of safe deposit boxes either, so you'll need to take out your own insurance policy. Homeowners and renters insurance policies might include coverage for safe deposit boxes; check with your insurance provider.
References
- Bankrate.com: What to Keep in a Safe-deposit Box
- Bankrate.com: What Not to Store in a Safe-Deposit Box
- Federal Deposit Insurance Corporation. “Five Things to Know About Safe Deposit Boxes, Home Safes and Your Valuables.” Accessed May 8, 2020.
- Las Vegas Vaults. "Safety Deposit Box Sizes + Prices." Accessed May 8, 2020.
- ESL Federal Credit Union. "Safe Deposit Boxes: Fees." Accessed May 8, 2020.
- Wells Fargo. “Order Checks, Stop Payments, and Other Requests Questions.” Accessed May 8, 2020.
- National Personnel Records Center. "DD Form 214, Discharge Papers and Separation Documents." Accessed May 8, 2020.
- TreasuryDirect. "Series EE Savings Bonds." Accessed May 8, 2020.
- Federal Deposit Insurance Corporation. “A Guide to What Is and Is Not Protected by FDIC Insurance.” Accessed May 8, 2020.
- Arkansas Law Review. “The Legal History of Safekeeping and Safe Deposit Activities in the United States,” Page 728. Accessed May 8, 2020.
- New York Times. "What You Need to Know About Safe Deposit Boxes." Accessed May 8, 2020.
- BBVA. "Bank Safe Deposit Box." Accessed May 8, 2020.
Writer Bio
Gregory Hamel has been a writer since September 2008 and has also authored three novels. He has a Bachelor of Arts in economics from St. Olaf College. Hamel maintains a blog focused on massive open online courses and computer programming.