In addition to storing wealth in the form of investments and personal safes, there are also some people who choose to store their assets in bank safes or often also called safe deposit boxes .
The owners of these assets usually choose this large safe because it is made of sturdy steel which has anti-theft and fire-resistant features so that the level of security is very high.
Well, if you also want to keep the treasures you have in a safe deposit box , there are a few things you should consider first. Ranging from advantages to disadvantages.
Advantages of Saving Money in a Bank Safe
There are many advantages or advantages that customers can get if they save money or valuable assets in a bank vault. Here are some of the advantages offered by the safe deposit box service.
1. Guaranteed safety
Because the material is made of sturdy steel that is resistant to dismantling and fire resistance, many people who have valuable assets choose bank safes as the safest alternative for storing treasure.
In addition to the good physical condition of the safe, the security system is also guaranteed because many banks use a biomedical dual-control security system so as to be able to provide maximum protection for valuable assets owned by customers.
Currently, there are many banks that provide safe deposit box services using a double security key in the form of a master key which is only owned by the bank and the customer. Therefore, only the two parties can open the bank vault.
2. Low risk of loss
In addition to treasures in the form of money and jewelry, you can also store valuable letters or documents in a safe deposit box. This facility is usually used by people who have assets in the form of stocks and bonds.
By storing valuable assets in this large vault, customers can minimize the possibility of losing these valuable assets. It’s different if you store valuable assets in a home safe which still has the potential risk of loss or fire.
3. The procedure is easy
To be able to use the safe deposit box facility, customers only need to open an account at a certain bank. However, there are also some banks that do not require prospective safe users to become their customers. Therefore, you also have to find out in advance the terms and conditions of the bank you want to use in order to take advantage of these facilities.
But, you don’t need to worry because the registration procedure for using a bank safe is not complicated. You can directly visit the safe location, fill out the form provided by the bank, pay the deposit fee, and submit the asset you want to deposit.
4. Rental period can be extended
Storing valuable assets in a safe deposit box must be done in accordance with the terms and agreements between the tenant and the bank/service provider. Generally, the agreement that occurs between the two parties is carried out within a period of one year.
However, you can still extend the rental period automatically or through certain procedures according to the terms and conditions that apply at the safe location.
Disadvantages of Storing Assets in a Bank Safe
Although it has many advantages, it does not mean that there is no risk at all if you store valuable assets in a bank vault. The following are drawbacks that may have to be anticipated or prepared if you want to use these facilities.
1. There is a rental fee
With a high level of security and various other benefits that can be obtained by customers, this safe deposit box facility or service certainly cannot be obtained for free.
Each customer must pay a rental fee that is not cheap to be able to use it. Generally, safe service providers will offer rental times for a year or per semester, according to the agreement between the two parties.
In addition to the rental fee, you also need to pay a key guarantee fee and a fine if you are late paying the rent. So, make sure you already know what the costs are to be able to store treasures in a bank vault.
2. Force majeure risk
Although resilient and fire-resistant, valuable assets stored in bank vaults can also be damaged by natural disasters. This condition is also known as force majeure.
In such conditions, the bank or safe deposit box provider is usually not responsible for compensation for losses arising from natural disasters or conditions beyond the control of the other two parties.
Therefore, you must ensure the details of the agreement with the bank or rental service provider in order to know and anticipate the risk of storage.
3. Not all items can be stored in bank vaults
Some people may consider firearms to be valuable items. Unfortunately, the bank or safe rental provider does not allow customers to store items that can damage the safe.
In addition, you are also not allowed to store important items such as power of attorney, health records, wills, and other items that are in an emergency or urgent condition.
How to Save Money in a Bank Safe
The following is how to store money in a bank vault and some tips you need to do to maximize the storage of your valuable assets.
As explained earlier, you need to register according to the provisions of the bank or safe deposit box provider to be able to take advantage of this facility. However, don’t be picky! You also have to make sure that the provider you choose has a good reputation for its services.
Here are some ways to store money in a bank vault that you need to do:
- Open a savings account at the destination bank
- Fill out the form and submit the required documents
- Provide seal
- Pay the rent
- Pay administrative fees and guarantees according to bank policy
- Accepts key or bank safe access card
2. Check the security level
In addition to finding out detailed information regarding the reputation of the bank or safe deposit box tenant, conduct a survey of the safe directly and make sure there are CCTV cameras in the storage room, tight security, and advanced technology used in the safe box system.
3. Recognize the rights and responsibilities of both parties
After deciding to use the safe deposit box facility, you also need to study in depth about what rights and responsibilities are between the customer and the bank or safe deposit box tenant. This is necessary to anticipate any negligence or other risk of loss.
The average price of a safe deposit box
The price is determined by the size of the box, your bank, and your location. Expect to pay anywhere from $15 to $150 per year.
When you rent a larger safe deposit box, the fee rises. So, assuming the bank charges $1 per square inch, a 10-by-10-inch box should cost around $100 per year.
Here are some examples of how much financial institutions charge to rent safe deposit boxes:
Federal Credit Union for Local Government (North Carolina)
Annual cost: $18 to $90
Box dimensions range from 3 by 5 inches to 10 by 15 inches.
Credit Union First Choice (Florida)
Annual cost: $20 to $100
Box dimensions range from 3 by 5 inches to 10 by 10 inches.
First Bank and Trust Company (Virginia)
Annual cost: $20 to $65
Box dimensions range from 2 by 5 inches to 34 by 16 inches.
Washington Federal Reserve Bank (Washington)
Annual cost: $15 to $150
Box dimensions range from 2 by 5 inches to 34 by 16 inches.
Some banks charge less if you have a good relationship with them.
Thus information about the advantages and disadvantages, as well as how to save money in a bank safe that you need to know.