9 Things You'll Regret Keeping in a Safe Deposit Box
9 Things You'll Regret Keeping in a Safe Deposit Box
By Bob Niedt | September 18, 2018
In today’s digital age, in which seemingly anything that matters is stored virtually “in the cloud,” a physical safe deposit box comes across as a relic of the bricks-and-mortar past. But don’t be too hasty to dismiss the importance of keeping certain valuables securely tucked away in your bank’s vault. A safe deposit box can offer critical protection for important documents and prized possessions.
“I have birth certificates and Social Security cards and old valuable baseball cards that were my father’s in a safe deposit box,” says William P. Simons IV, president and CEO of Rust Insurance Agency in Washington, D.C.
A safe deposit box isn’t a wise choice for everything, however. We talked to experts to come up with a list of nine things you might come to regret locking away in your bank, which isn’t open nights, holidays or perhaps even weekends. Instead, Simons recommends storing important items that you need to access more frequently or on short notice in a fireproof home safe that’s bolted to the floor. See the list of safe deposit box no-no’s.
Keeping a stash of cash in a safe deposit box isn’t a good idea for several reasons, warn experts. First, if you need the money in an emergency, but the bank is closed, you’re out of luck. Second, the idle cash loses buying power over time due to the effects of inflation.
It’s better to put the money in an interest-bearing account or certificate of deposit. Third, some banks expressly forbid storing cash in a safe deposit box. Read the fine print of your agreement.
Keep in mind, too, that cash in a safe deposit box isn’t protected by the Federal Deposit Insurance Corporation, says Luke W. Reynolds, chief of the FDIC’s Community Outreach Section.
To receive FDIC insurance, which covers up to $250,000 per depositor per insured bank, your cash needs to be deposited in a qualifying deposit account such as a checking account, savings account or CD.
Passport
Let’s face it: Unless you’re, say, an international jet-setter or global business executive, you probably don’t need your passport in hand 24/7. So it’s tempting to store it in a safe deposit box where it won’t get lost, damaged or stolen. Our advice: Avoid the temptation.
A planned trip is one thing, but emergency trips by their nature are unplanned – and inevitably arise during non-banking hours. A child getting sick while studying abroad or a parent suffering an accident while on an international cruise can spark a scramble to book tickets to leave the country on short notice.
“When we talk about important documents [to store in a safe deposit box], a passport would be a bad idea for that last-minute trip to Europe that you booked at 5 p.m. and your flight is at 9 p.m.,” says Rust Insurance Agency’s Simons, who keeps his passport in his home safe. “If your passport is in the safe deposit box, you’re staying home.”
Original Copy of Your Will
It’s fine to keep copies of your own will, your spouse’s will and any wills in which you’re named the executor in a safe deposit box. However, do not store the original copy of your will there – especially if you’re the sole owner of the safe deposit box.
Here’s why: After your death the bank will seal the safe deposit box until an executor can prove he or she has the legal right to access it. This could lead to long and potentially costly delays before your will is executed and your heirs receive their inheritances.
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