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 24, 2021
Locking up certain important documents and valuables in a bank vault could turn into a headache for you or your heirs. No doubt, it's a digital world. Seemingly anything that matters is stored virtually in the cloud. To that end, a physical safe deposit box comes across as a relic of the bricks-and-mortar past. But don’t be too quick to dismiss the importance of keeping certain valuables securely tucked away in your bank’s vault.
Some examples of things you can keep in a safe deposit box include prized possessions such as baseball cards or jewelry inherited from a relative, for example. A safe deposit box can also offer critical protection for important documents.
But a safe deposit box isn’t a wise choice for everything. 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.
Access to your safe deposit box could be even more limited during emergencies, including natural disasters (which could be frequent, depending on where you live). The coronavirus pandemic, too, reduced operating hours for some bank branches, and limited access or required appointments for in-branch services, such as access to safe deposit boxes. Moves like that complicate your ability to retrieve important documents or items when you need them--so create a financial plan beforehand.
Experts recommend 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. But what are those items? Read on for our list of safe deposit box no-no’s.
1 of 9 Cash
You may wonder if it’s OK to put cash in a safe deposit box. Experts warn there are several reasons you shouldn't stash cash in a safe deposit box:
If you need the money in an emergency, but the bank is closed, you’re out of luck.
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.
Some banks expressly forbid storing cash in a safe deposit box. Read the fine print of your agreement.
Bear 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.
2 of 9 Passport
Unless you’re, a global business executive or social media influencer who travels for clicks, 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: Don’t.
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 leave the country on short notice.
To continue reading, please go to the original article here: