Is a Safety Deposit Box Worth It? (Yes, Here's Why)

Updated

Aug 16, 2024

Trustworthy is an intelligent digital vault that protects and optimizes your family's information so that you can save time, money, and enjoy peace of mind. Learn more from our webinar recording.

man opening safe deposit box

Is a Safety Deposit Box Worth It? (Yes, Here's Why)

Updated

Aug 16, 2024

Trustworthy is an intelligent digital vault that protects and optimizes your family's information so that you can save time, money, and enjoy peace of mind. Learn more from our webinar recording.

man opening safe deposit box

Is a Safety Deposit Box Worth It? (Yes, Here's Why)

Updated

Aug 16, 2024

Trustworthy is an intelligent digital vault that protects and optimizes your family's information so that you can save time, money, and enjoy peace of mind. Learn more from our webinar recording.

man opening safe deposit box

Is a Safety Deposit Box Worth It? (Yes, Here's Why)

Updated

Aug 16, 2024

Trustworthy is an intelligent digital vault that protects and optimizes your family's information so that you can save time, money, and enjoy peace of mind. Learn more from our webinar recording.

The intelligent digital vault for families

Trustworthy protects and optimizes important family information so you can save time, money, and enjoy peace of mind

The intelligent digital vault for families

Trustworthy protects and optimizes important family information so you can save time, money, and enjoy peace of mind

If you’re looking to protect your valuable possessions, you may have thought about using a safety deposit box. But are safety deposit boxes secure and worth storing items in?

Renting a safety deposit box is absolutely worth it. It’s an excellent place to store irreplaceable and important documents that you don’t need to access very often. Although it’s great to keep items in a safety deposit box, it’s important to understand how they work and what valuables to keep inside of them. 

Key Takeaways

  • A safety deposit box is used to store your valuable items and is kept in a federally insured bank or credit union.

  • While safety deposit boxes are secure, they can be vulnerable if unauthorized persons have the keys. 

  • Trustworthy is a secure digital alternative to a safety deposit box. 

What Is a Safety Deposit Box?

what is a safety deposit box

A safety deposit box, also known as a safe deposit box, is an individual container that’s kept in the vault or safe of a federally insured bank or credit union. Safe deposit boxes are typically made out of metal and are used to protect valuables, sentimental items, and important documents.

The boxes come in various sizes but usually don’t get larger than 10 inches by 10 inches and two feet deep. If you’ve ever seen a bank heist movie, I’m sure you know what a bank vault looks like. Safe deposit boxes are more secure than your home because they are usually kept in weather-proof bank vaults. 

Bank vaults are highly secure locations that are equipped with video cameras, security guards, alarms, and state-of-the-art safety locks. They’re also reinforced to withstand floods, fires, tornadoes, and hurricanes. 

An alternative to a physical safety deposit box is Trustworthy. Trustworthy is the leading Family Operating System that protects, optimizes, and organizes your important information.  Ensure your family is prepared for all life moments with Trustworthy. Start your free trial today.

How Do Safety Deposit Boxes Work?

You can rent a safety deposit box from most banks, but we recommend using a bank where you have an account already. After signing the lease agreement for the box, you have the choice to add co-lessors (co-renters) who will have equal access and rights to the contents of the box. 

Then, the bank will give you a key that’s used to open your safety deposit box.

Safety deposit boxes have two keyholes, which means you need two keys to open your safe deposit box. The second key, called the guard key, is held by the bank or credit union. You will hold onto the first key.  

The double key system means that your precious items are extremely secure. Even if someone steals your key, they won’t be able to gain access to the guard key since they can’t confirm your identification. 

With Trustworthy, all of your important documents and assets are beautifully organized and securely protected. Most importantly, you and your trusted professionals can access them anytime and anywhere. Start your free trial today. 

4 Factors to Consider Before Opening a Safety Deposit Box

factors to consider before opening up a safety deposit box

Before you run over to the bank and open up your safety deposit box, there are 4 essential factors to consider. Even though safety deposit boxes are great at storing valuable items, they aren’t the perfect solution for everyone.

Let’s dive into each factor.

1. What to Keep in a Safety Deposit Box

You should avoid storing items in a safety deposit box that you might need during an emergency. Since you can only access your safety deposit box during the bank’s hours, you may need certain items on a whim’s notice.

So I don’t recommend keeping passports, medical directives, powers of attorney, and the only copies of your will in a safety deposit box. 

Good items to keep in a safety deposit box include:

  • Contracts and business papers


  • Military discharge papers


  • Stock and bond certificates


  • Small collectibles and family heirlooms


  • Birth certificates


  • Marriage licenses


  • School transcripts and diplomas


  • House deeds

These are all items that are hard to replace and that you won’t need to access frequently.

2. How Often to Access Your Safety Deposit Box

Depending on what items you plan to keep in your safety deposit box, it can be a hassle constantly running to the bank to retrieve them. You should only keep items in your safety deposit box that you don’t need access to for an extended period of time.

This may not be an issue if your bank is near your home. However, banks that are located far away from your home will not be ideal if you have to access your safety deposit box frequently. 

3. Sharing Access to Your Safety Deposit Box

You should also consider if you want anybody else to have access to your safety deposit box. Since you’re allowed to add co-lessors to the box, you may want to add a spouse or family member. But remember, the co-lessor will have complete access to the contents in the box. The person you choose to add should be someone you completely trust.

In case of an emergency, it can be helpful to give somebody access to your safety deposit box. For example, if the owner of a safety deposit box dies and there’s no co-lessor, retrieving the contents within the box is a complicated process. Anyone seeking access to a safe deposit box after the owner’s death will need a court order from a judge.

However, co-lessors will have access to the safety deposit box, even if the owner passes away. 

Compared to safety deposit boxes, Trustworthy allows much more flexibility around who can access your records, how long they have access, and which documents they can see. For example, you can invite your spouse as a collaborator to access all your information, while inviting your accountant to review your finances only during tax season. Start your free trial of Trustworthy today.

4. Safety Deposit Boxes Are Not Insured

The Federal Deposit Insurance Corporation (FDIC) does not insure safety deposit boxes. If something were to happen to your safety deposit box, like a fire burning the bank vault down, your destroyed valuables would not be insured. 

For this reason, I don’t recommend storing cash or highly expensive possessions inside a safety deposit box. The FDIC only insures money inside of a federally insured bank or credit union account, so it’s better to keep your cash inside of a checking or savings account.

However, you can purchase insurance on the items in your safety deposit box if you want to store expensive valuables inside it. It will cost more, but third-party insurance is the only way to protect your safety deposit box from damage. 

How to Set Up a Safety Deposit Box

Opening a safety deposit box is straightforward and simple. Ask the branch you currently bank at if they offer safety deposit boxes, the box sizes, and the rental rates. Most banks offer a discount on their safe deposit boxes for established customers, so I recommend using your own bank.

Once you agree on the safety deposit box terms, the bank will give you a lease agreement to sign and a key. You will then need to sign a safe deposit admission slip to gain access to the vault. 

A safe deposit box attendant will bring you to the vault’s viewing area, where you can open, add, and remove items from the box. The attendant will give you the bank’s guard key to open up your box along with your personal key.

You’ll be left alone in private in the vault when you use your safety deposit box. As such, the bank won’t know what you put inside your safety deposit box. Banks also won't vet your items which is another reason why safety deposit boxes aren’t insured. The bank doesn’t even know what valuables are kept inside.  

How Much Safety Deposit Boxes Cost

The cost of renting a safe deposit box depends on your specific branch’s location and the size of the box. Prices can range from $40 per year for a small box up to $350 per year for bigger-sized boxes.

For example, leasing a safety deposit box in New York City, New York is more expensive than one in Joliet, Illinois. 

Let’s take a closer look at the annual safety deposit box rates vary at a few specific banks. I called multiple branches in different cities to find out what they charge.

Comparisoh table

The Pros and Cons of a Safety Deposit Box 

There is no question that safety deposit boxes and bank vaults are safer and more secure than your own home. This is why opening a safety deposit box is a great idea to store important documents, sentimental items, and valuable items that are insured.  

Safety deposit boxes are worth it for individuals who are paranoid about keeping important items in their homes. If you live in a region that’s prone to tornadoes or hurricanes, a devastating natural disaster can destroy these items. 

However, safe deposit boxes aren’t the best storage solution for everyone.

Tom Mullooly, an investment expert from Mullooly Asset Management in Wall Point, New Jersey, points out a scenario that many people often overlook: banks changing ownership. He explains:

“I’ve heard people say ‘I’ve had my safe deposit box at the same bank for 35 years,” and points out the problem, “but along the way, it’s become five or six other banks.” 

This becomes a problem as you lose track of who has the second key to your deposit box.  

With the transition to the digital age, digital storage solutions like Trustworthy are a better option for keeping important documents safe. Rather than keeping one-of-one physical documents that may get lost or destroyed, you can store them digitally within Trustworthy.

With Trustworthy, you’ll never have to scramble over to your bank to retrieve important files. Instead, you can simply log in to Trustworthy’s secure platform with a computer or mobile device to access your essential documents.

Frequently Asked Questions:

What happens to safety deposit boxes if the bank closes? 

The bank may give you the opportunity to retrieve your contents. If another bank branch acquires your bank, you can reach out to them.

How do you find out if a deceased loved one had a safety deposit box? 

If there is no information in their legal or financial documents, you can contact the deceased’s bank to find out. 

What happens if I lose my safety deposit box key?

Depending on the circumstances, you may need to pay for a locksmith to cut the lock open. 

Other Safety Deposit Box Resources

We’d love to hear from you! Feel free to email us with any questions, comments, or suggestions for future article topics.

Trustworthy is an online service providing legal forms and information. We are not a law firm and do not provide legal advice.

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