Safe-Deposit Box: How It Works and Where to Get One Near You

If you need a secure place to store valuables like family keepsakes, important documents and irreplaceable jewelry, a safe-deposit box at your local bank or credit union could be a great option. Even though some big banks are discontinuing this service, plenty of financial institutions still offer affordable options for safe-deposit boxes.

Here’s what you should and shouldn’t store in a safe-deposit box, plus some box alternatives to consider.

What is a safe-deposit box?

A safe-deposit box, or a safety deposit box, is a secure container locked in a vault at a bank or credit union. You can rent a safe-deposit box to store hard-to-replace documents, valuables, family heirlooms and more. The bank’s security system helps ensure the contents of your safe-deposit box are kept safe and sound — with extra protection against natural disasters such as fires and floods.

In addition to the rental fee, financial institutions typically charge a refundable deposit for the box’s key, with a backup key held by the bank. Some places now offer a keyless biometric system, which usually involves scanning your finger for authentication.

While you can open a safe-deposit box in your name only, make sure to include at least one other person you trust on the lease — that person can easily access your contents in an emergency or if you pass away.

How much is a safe-deposit box?

The cost to rent a safe-deposit box depends on the box’s size, the bank, your location and overall availability. Small boxes (3 by 5 by 24 inches) generally range from $10 to $65 a year, while large boxes (10 by 10 by 24 inches) can cost more than $100 per year. Most institutions require the safe-deposit box rental fee to be paid on an annual basis, although some charge monthly fees.

You may be able to have the safe-deposit box fee waived or receive a discount if you have an eligible checking account with the financial institution.

*Note that prices may vary by branch location and account status.

Are safe-deposit boxes insured?

While the Federal Deposit Insurance Corp. (FDIC) insures up to $250,000 of eligible deposit accounts, most financial institutions don’t insure safe-deposit boxes. This is because banks can’t access your box, making it difficult to estimate the value of its contents.

However, you can insure your valuables through a private insurance company. Contact your agent to ask about adding a “personal article floater” to an existing policy. Some insurance providers let you purchase a policy online without an appraisal. Coverage amounts can range from $5,000 to $500,000 per box.

The safe-deposit box insurance price varies based on how much coverage you need. You can find policies for as little as $25 per year. Some banks even partner with insurance companies to offer low-rate policies. Depending on how much insurance you need for a safe-deposit box, it might be worth switching banks to get affordable insurance for your valuables.

What to keep in a safe-deposit box

A safe-deposit box is best used for items that need extra security or protection. If possible, make copies of all important paperwork before storing them in your safe- deposit box.

Here are some common items that you can store in a safe deposit box:

• Birth, death and marriage certificates: Although you can request new copies of these forms from your state’s vital records office, the wait time can range from 30 to 90 days.
• Property records: You may need your proof of purchase when selling your property. Having the original property survey could help if your neighbors start a dispute over property lines. Storing a list of your home’s contents for insurance purposes can help in the case of a house fire or flood.
• Citizenship/naturalization papers: Because replacing your naturalization certificate can cost $505 (if you file online), investing in a safe-deposit box could be worth it.
• Vehicle titles: It typically takes 15 to 30 days to receive a replacement car title. Stashing it away in your safe-deposit box can help save you time and money when you’re ready to sell your vehicle.
• Stamp or coin collections: Keeping your valuable stamp or coin collections in a dark, temperature-controlled environment can help ensure their longevity.
• Jewelry: If you have high-quality jewelry you don’t wear regularly, you can store it in a safe-deposit box. Note that it’s recommended to get insurance when storing valuables like jewelry in a safe-deposit box.
• Paper stocks and bond certificates: You can add an extra layer of protection for any paper stocks or bonds by keeping them in a safe-deposit box. Just make sure you let someone know about the box or list the details in your will for when you pass away.
• Family photos: Keeping family photos in a safe-deposit box can help preserve them for decades. Just scan them first so you have digital access to your favorite photos.

What not to keep in a safe-deposit box

While safe-deposit boxes can be a great place to safeguard valuables and important documents, they aren’t ideal for irreplaceable items or anything you may need in an emergency.

Here are some items that shouldn’t go in your safe-deposit box:

• Cash: Although it’s technically not illegal to store cash in your safe-deposit box, banks typically advise customers against doing it. Depositing your cash into a high-yield savings account, a certificate of deposit (CD) or a brokerage account can help you maximize your earnings. In addition, hiding cash in a safe deposit box could potentially raise red flags with the IRS.
• Living will and power of attorney: Your loved ones may need quick access to your living will or power of attorney documents if you’re seriously injured or pass away. If you plan to do this, add an authorized user to your safe deposit box; otherwise your loved ones will need to obtain a court order to access it.
• Passports: You can only access your safe deposit box during the bank’s business hours. It’s best to keep your passports in a secure, waterproof and fireproof safe at home in case you need to take an emergency trip.
• Uninsured valuables: Financial institutions and estate planning attorneys advise against keeping uninsured valuables in your safe deposit box.
• Illegal items: You must follow state and federal laws regarding what’s allowed in a safe-deposit box. Illegal items such as firearms, explosives, drugs, hazardous materials and items banned in your state are generally forbidden.

Safe-deposit box alternatives

Unfortunately, some banks consider safe-deposit boxes an outdated service and have discontinued them. If you want to secure your valuables and important documents, here are some other options to consider.

• Home safe: With a home safe, you can access its contents 24/7, allowing you to store items like your passport or IDs. You can also customize your home safe to any size you want. However, these are typically larger safes and must be affixed to the wall, making it difficult to move or evacuate the property.
• Fireproof and waterproof safe-deposit box: A home security box can help protect your valuables against natural disasters, such as fires, floods and more. They are relatively affordable and typically accessible via biometrics, a key or electronic entry. However, thieves can easily remove them from your house and use tools to break them open.
• Diversion box: Also called a diversion safe, these boxes are designed to look like everyday objects in the house, such as a clock, book, tissue box and more. The goal is to hide valuables in something a burglar would likely ignore. However, these boxes are usually smaller than safe deposit boxes and aren’t always made from fireproof and waterproof materials.

Frequently asked questions

Which bank has the cheapest safe-deposit box?

You can get complimentary access to a small safe-deposit box at Fifth Third Bank and First National Bank if you have an eligible checking account with them. Otherwise, the cheapest option, based on our research, is First Bank & Trust, which charges $16 a year for a small safe-deposit box (3 by 5 by 22 inches). Cheaper options may be available, especially if you have an existing account with a bank or credit union.

Can you put cash in a safe-deposit box?

Although you can technically keep cash in a safe-deposit box, it’s generally not a good idea. For starters, cash stored in a safe-deposit box is not insured. While using a safe-deposit box is usually safer than storing cash at home, you’ll lose your cash if something happens to the box. The best way to secure your cash is to keep it in an FDIC deposit account, which is insured up to $250,000. Plus, you’ll earn interest along the way.

Be aware that stashing cash in a safe-deposit box could make it look like you’re trying to hide money from the IRS.

Who can access a safe-deposit box after death?

The protocols for handling a safe-deposit box after death depend on your state laws and the bank’s rental contract. Some banks may freeze access to the safe-deposit box until they can take inventory of the contents with the surviving joint owner or a representative from the estate. In some cases, a court order is needed to access the box’s contents, even for a joint owner.

To ensure your valuables are quickly released to your loved ones, contact an estate attorney to discuss your state’s specific laws and requirements.