What's in Your Bank Safe Deposit Box Agreement? Interesting Facts Everyone Should Know.

Have you ever taken the time to understand what you are agreeing to when entering into a contract to open up a safe deposit box at your local bank? Probably not. Most folks never ask questions or really care how it works.

I figured I’d post some information everyone should know before entering into this sort of contract with your bank.

To start off you must understand I will give you the basics of a general safe deposit box contract that most banks follow. There will be differences based on what state laws require and what institution you hold your box with.

You should always read your Safe Deposit Box Agreement and understand what you are entering into.

Here are the basics for what you need to know when you rent a box:

• You are entering into a landlord and tenant relationship with the bank.
• Your contents are not FDIC Insured. See 1. Below.
• You must provide name, address, date of birth, social security number and license or other identification to open a box.
• Document what’s in your box and keep it somewhere other than the box.
• You are agreeing the safe box is not fireproof, waterproof or burglarproof. See 2. Below.
• Understand the laws for your state. What happens if I don’t pay or how much time must pass before my box is considered abandoned by the state? Ask your bank that question.
• You can close out your box at anytime.
• You can not access the box without a bank employee present. Takes two keys to open and one is held by the bank/landlord.
• You can have multiple signers on the box and they can act independently of each other.
• The bank can restrict or suspend access to your box for any reason. See 3. Below.
• You must give appropriate identification desired by the bank for access.
• You are limited on what you can store in the box. See 4. Below.
• Do not give information to the bank as to what contents are in the box. See 5. Below.
• Always choose a box that’s higher up. Vaults are not waterproof.
• Always place valuables in a ziplock bag. Vaults are not waterproof.
• There will generally be an aggregate value limit on the total contents allowed in the box. Most banks approx $20k-$50k.
• All claims and disputes are generally subject to arbitration.

1. Your safe deposit box is not FDIC insured and you may want to look at getting your own insurance placed on the contents of the box. Many homeowner or renter policies allow for a rider to be placed on safe deposit box.
2. Bank vaults are not guaranteed protection. If your area is known for flooding or fire hazards you may want to think twice before using that banks vault to store valuables. Also although it’s rare, the vault can be burglarized putting your box in jeopardy.
3. The bank may restrict or suspend access for any reason. Example of reasons are past due rent and fees. If court documents are received including for example a levy, garnishment, seizure warrant, execution, restraining order, etc…
4. You are not allowed to store the following in your box. Money, coin or currency unless considered collectible. No firearms or ammunition. Nothing illegal in nature. Nothing perishable, liquid, pressurized, hazardous, corrosive or explosive. With the mention of money, there is a fine line on whether government mints are considered money. If so, then American gold or silver eagles are money. With that said, government minted coins are considered money and not collectible unless in proof like condition.
5. Do not inform the bank employees as to what you have in your box. It’s none of their business. If you mention what you are storing, the bank employee may address findings with compliance. You don’t need that headache so there is no need to talk about it.

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Thanks for reading.