Should You be Stashing Cash in Safe Deposit Boxes? Could be a Wise Investment Decision
With technology advancement, safe deposit boxes are antiques of the analogue age as personal banking is now digital. However, some people prefer to store important papers, jewellery, and valuables in safe deposit boxes as they are more secure in these good old boxes. A safe deposit box is a large storage container in a secured rented area or a vault, typically that are rented or owned by banking institutions, credit unions, and other financial institutions. Customers are given a key and they need to let the bank know who keeps the second key, before unlocking their safe deposit box.
Younger Customers Are Going Digital
Few banks which offer a keyless system that enables the customers to access their valuable items by scanning a finger or the hand. Even though the correct statistics about the usage of these safety deposit boxes cannot be made through federal regulators and industry groups, but according to banking security experts, the demand has been sluggish. Bank officials recently revealed that demand for such boxes has fallen rather drastically. Young generation customers prefer to store their documents digitally where these are safe and easily accessible. Less than 50% of safe deposit boxes of the banks are actually being rented nowadays. On being asked if they provide safe deposit box services to their clients, many banks confirmed having discontinued these services. Another huge reason why these deposit boxes are not being favoured, is that these occupy a lot of valuable real estate space which can easily be profitably used for some alternate purposes.
Some Leading Banks Offer Safe Deposit Boxes
Bankers divulged a lack of historical data relating to use of safe deposit boxes, and retain the facility of boxes active in more than half of their branches. Safety deposit box consultants mention that least a million deposit boxes are. rented and several branches even include them in their list of services. Actually some people believe these boxes are the most secure place to store their valuables.
Using Safe Deposit Box?
What should be stored in safe deposit boxes? All valuables, as also important documents not needed immediately such as mark sheets, property deeds, birth certificates, and bond documents. Keeping your passport in a safe deposit box is not feasible if you travel abroad frequently. You access your bank box during banking hours and not beyond. Keeping a safe deposit box at home is a good option. Estate lawyers advise against storing wills in bank boxes as accessing them after the owner’s demise is tough. Clients are advised to keep original documents with their lawyers and store copies in a cabinet or a secure place.
It’s Not Pragmatic
Banking security experts advise against dumping emergency cash in deposit boxes as not being practical. FDIC provides insurance on cash kept in a deposit account but not for cash stored in bank boxes. Chances are that your money might get stolen possibly by bank employees. Deposit boxes are prone to risks associated with natural disasters. Experts advise stacking all valuable documents and cash in plastic bags or air-tight containers to protect them against water damage.
Thus safe deposit boxes are not a pragmatic option for bank customers in a digital age. Choose safe deposit boxes and your bank carefully should you require the facility.
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