Are There Benefits to Opening a Safety Deposit Box?Įven though it’s been determined that safety deposit boxes are not as safe as expected, they might be a better solution for keeping valuables than some people’s homes. Instead, a savings account or checking account from an FDIC-insured credit union should be used. Yes, a safety deposit box can be safer than a box hidden under your bed, but neither are ideal. The same consideration should be given to your money. Medical directives, living will, marriage license, and many others should be kept in a locked safe at home with a copy being held elsewhere.Īs we’ve learned with the coronavirus pandemic, businesses can quickly become closed to the public with an unknown reopening date.Įven if the document isn’t needed on a regular basis, or on short notice, consider the stress it can cause you to not have access to it for an unknown length of time. People should also avoid leaving the original copy, or the only copy of important paperwork in a safety deposit box. It’s best to avoid storing items you might need on a short notice in a safety deposit box. What Items Should Not be Kept in a Safety Deposit Box? This way, if something were to happen, your items would have some coverage. When you decide to open a safety deposit box, it is generally a good idea to consider adding a policy covering the contents of the box to your homeowners or renter’s insurance policy. If something were to happen, these banking accounts would be protected, but the contents of a safety deposit box would not. The FDIC only insures the money found within accounts at FDIC-insured banks, like HRCCU. (FDIC) does not insure the contents of a safety deposit box. However, the Federal Deposit Insurance Corp. Theoretically, contents in a safety deposit box are safe from being stolen and safe from the wear and tear that comes from keeping valuables out in the open. Safety deposit boxes are housed within a locked vault, which gives the outwards appearance of safety and assurance. Are Contents in a Safety Deposit Box Insured? It’s normal to have questions surrounding safe deposit boxes, such as how well your belongings will be protected, and which items should not be kept in one.īefore you decide to open a safety deposit box, it’s important to understand if renting one holds any benefits to you, if your items are insured by the bank, and what items should not go in the box. In this example, the safety deposit box was not secure, nor did it provide the protection that was needed. Watches, coins, family photographs, and more precious heirlooms have still not been returned to Poniz. The contents had been shipped to a storage facility in North Carolina.

In a report by the New York Times, it was discovered that the bank had mistaken his deposit box for the box of another customer who was unable to keep up with the payments. Then, on April 7, 2014, Poniz lifted the metal lid to his safe deposit box to find that it had been emptied.

Over the next few decades, although the bank changed hands, he used the same box to store personal items. This sense of worry can escalate if you’ve heard the story of Phillip Poniz, who opened his first safety deposit box during the 1980s. Protecting family heirlooms, collectibles, and important documents can lead to an endless amount of worry.Īlthough many of us have been led to believe that safety deposit boxes offered by banks across the United States are safe, it doesn’t mean your property is fully protected.

Safebox with timer