‘I keep hearing about break-ins in my neighborhood’: Should I keep valuable items in a safe-deposit box? What are my options?
Quentin Fottrell
4 min read
“My jewelry has strong sentimental value to me, which makes it irreplaceable.” (Photo subject is a model.) - Getty Images/iStockphoto
Dear Quentin,
Is it safe to keep valuables in a bank safe-deposit box? It sounds like a silly question, but about a year ago I went to a local bank and read the agreement for renting a box. I read that the bank discourages people from storing jewelry and coins in the boxes, so I did not rent one. I remember the representative explaining that two keys were needed to open the box.
Are banks responsible for lost items? I imagine that for privacy, there are no cameras in the safe-deposit box area. I have jewelry at home, but I do not feel safe keeping it there. I keep hearing about break-ins in my neighborhood. Am I overthinking this? Are there other options for keeping valuables safe? My jewelry has strong sentimental value to me, which makes it irreplaceable.
Safe-deposit boxes are best used to store important documents rather than items like your grandmother’s diamond ring or pearl necklace. - MarketWatch illustration
Dear Insecure,
Safe-deposit boxes have their drawbacks.
The Federal Deposit Insurance Corp. advises consumers not to confuse safe-deposit boxes with deposit accounts. The former is a storage space provided by the bank, “so the contents, including cash, checks or other valuables, are not insured by FDIC deposit insurance if damaged or stolen,” the FDIC says. “Also, financial institutions generally do not insure the contents of safe-deposit boxes. If you want protection for the valuables in your safe-deposit box or home safe, talk to your homeowner’s or renter’s insurance agent about adding coverage under these policies.”
Safe-deposit boxes are best used to store important documents rather than items like your grandmother’s diamond ring or pearl necklace — and you should put cash in a checking or savings account where up to $250,000 per account is covered by FDIC insurance. “Good candidates for a safe-deposit box include originals of key documents, such as birth certificates, property deeds, car titles and U.S. savings bonds that haven’t been converted into electronic securities,” the FDIC advises. “Other possibilities for the box include family keepsakes, valuable collections, pictures or videos of your home’s contents for insurance purposes, and irreplaceable photos.”
Safe-deposit boxes are vulnerable to fire, theft or flood damage, so it’s a good idea to keep items in plastic bags or other waterproof containers for extra protection. “Be mindful not to use your bank safe-deposit box to store anything you might need to access quickly or when the bank is not open,” the FDIC adds. “That could include passports and originals of your ‘powers of attorney’ that authorize others to transact business or make decisions about medical care on your behalf.”
As the FDIC notes, you won’t be able to access a safe-deposit box in a hurry. The bank will have one key and you will have another, and the box can only be opened with both keys. You will only be able to get to the box when the bank is open, so it’s not the best place for something like a passport, which you might need to get your hands on quickly in order to visit a sick relative, for instance. Because many banks are shutting down some of their brick-and-mortar branches, your box might not be all that close by. Finally, safe-deposit boxes can cost up to $100 a year, based on the size of the box.
Security, like charity, starts at home. One of the best places to store jewelry that has both sentimental and financial value is in a fireproof safe that is bolted to the floor and either hidden or disguised as something else. Security cameras that provide a live feed to your phone are another layer of security. And of course, you can include these items on your homeowners insurance. While no amount of money can replace Items with sentimental value — such as pieces of jewelry that have been in your family for many years and that belonged to beloved relatives — it certainly doesn’t hurt.
