A safety deposit box is a secure storage container typically offered to individuals and businesses by banks, credit unions, and other institutions. It provides a private and highly secure space to store valuable items, documents, or sensitive possessions for an annual fee.
The renter or authorized individual can access a safety deposit box by using a unique key or code provided by the bank. These boxes are stored within a highly secure vault within a bank branch and are protected by multiple layers of security. Security measures can include steel doors, surveillance cameras, and alarms.
In this article, we explain all the details regarding safety deposit boxes in Canada, including what you should and shouldn't store in them, how much they cost, and where you can get one.
Key Takeaways
- For an annual fee, safety deposit boxes provide secure storage for valuable items.
- Items such as jewelry, collectibles, and digital backups are suitable for storage in safety deposit boxes, whereas cash, wills, illegal items, and passports are not.
- The cost of a safety deposit box varies depending on its size and location. Some banking packages offer reduced or waived fees for these boxes.
- Pros of safety deposit boxes include high-level security and resulting peace of mind, but paying fees and only having restricted access are significant cons.
- Alternatives include digital storage, fireproof lockboxes, and bank vault storage.
What should you store in a safety deposit box?
Safety deposit boxes are valuable for safeguarding important items and documents that you don’t need frequent access to. Here are some examples:
| Category | Examples |
|---|---|
| Valuable items | * Jewelry * Precious metals * Rare coins * Historical artifacts * Family heirlooms |
| Documents | * Property deeds * Birth certificates * Insurance policies * Financial records * Copies of wills and/or estate planning info |
| Collectibles | * Valuable and rare stamps * Trading cards * Artwork * Rare books or manuscripts * Sports memorabilia |
| Digital storage | * Digital backups * External hard drives * USB flash drives * Encrypted data |
It's important to remember that you should only store copies of your financial records and estate planning documents within a safety deposit box. These types of items need to be readily accessible in case of emergencies.
Do also keep in mind that safety deposit boxes vary in size. The smallest boxes can be as small as a few inches wide, so what you can store in them will be limited depending on space.
What shouldn't you store in a safety deposit box?
While safety deposit boxes are excellent for safeguarding various items, there are certain items and assets better kept elsewhere due to accessibility or legal considerations. Here are some examples.
- Cash for daily expenses or emergencies: Storing cash for everyday expenses or emergencies in a safety deposit box is not advisable. Access to these boxes may be limited, making it inconvenient to access them in a pinch.
- Original Last Will and Testament: A will should be kept in a more accessible location or with an attorney, as it may be needed promptly after your passing.
- Power of Attorney: Documents that grant someone else legal authority over your affairs should be readily accessible by the designated individuals and not solely stored in a safety deposit box, which could be inaccessible when needed.
- Illegal items: Any illegal items, such as drugs or stolen goods, shouldn’t be stored in a safety deposit box due to potential legal repercussions.
- Passports: You should always have easy access to your passport regardless of how often you have travelled in the past. For instance, imagine it is the night before an international trip and you forgot to take out your passport from your safety deposit box at the bank!
How much is a safety deposit box?
The cost of a safety deposit box depends on its size as well as which bank or institution you're renting it from. These rental fees are typically charged annually.
All of Canada's big 5 banks provide safety deposit box rentals, although not every branch location will have them, nor will they have all sizes available. The National Bank of Canada doesn't offer safety deposit boxes anymore, as of November 1, 2023.
This table lists the annual fees charged by the big banks for renting safety deposit boxes:
| Bank | Safety deposit box fees |
|---|---|
| BMO | * Small: $60 * Medium: $95 * Large: $150 * Extra large: $250 * Super large: $400 |
| CIBC | * 1 ½" x 5" x 24": $60 * 2 ½" x 5" x 24": $85 * 3 ¼" x 5" x 24": $90 * 5" x 5" x 24": $150 * 2 ½" x 10 3/8" x 24": $175 * 5" x 10 3/8" x 24": $350 * 10" x 10 3/8" x 24": $400 |
| RBC | * Small: $60 * Medium: $110 * Medium/Large: $230 * Large: $350 * Extra large: $500 |
| Scotiabank | * 1.5" x 5" x 24": $60 * 2.5" x 5" x 24": $100 * 3.5" x 5" x 24": $100 * 2.5" x 10.375" x 24": $150 * 5" x 5" x 24": $150 * 5" x 10.375" x 24": $300 * 10" x 10.75" x 24": $400 |
| TD | * Small: $60 * Medium: $100 * Large: $150 * Oversize: $5.00 per sq. inch |
It’s generally safe to assume that you will pay around $50 - $60 annually for the smallest box and up to $500 for the largest.
Banks with safety deposit boxes
The big 5 banks in Canada – which includes RBC, TD, Scotiabank, BMO, and CIBC – all offer safety deposit boxes in their bank branches. Canada’s largest credit unions, such as Vancity, Meridian, and Coast Capital, also have this offering.
National Bank of Canada recently stopped offering this service on November 1, 2023.
Naturally, safety deposit boxes aren’t offered by Canada’s digital banks, as these institutions do not have any physical branches.
Despite the costs outlined above, keep in mind that some banking packages may offer reduced or waived fees for safety deposit boxes. These can be very advantageous in the long term, saving you hundreds of dollars over the years.
Let’s cover some of these banking packages that can get you discounted safety deposit boxes.
| Bank Account | Safety Deposit Box Details |
|---|---|
| Scotiabank Ultimate Package | * Offers a free small safety deposit box (worth $60/year) * Overall banking package cost: $30.95 or $0 if you keep a $6,000 minimum balance |
| RBC VIP Banking | * Offers a free safety deposit box (discount of up to $60/year) * Banking package cost: $30.00 |
| BMO Premium Chequing Account | * Offers an annual $12 discount on safety deposit box fees * Banking package cost: $30.95 or $0 if you keep a $6,000 minimum balance |
The pros and cons of safety deposit boxes
Of course, there are both advantages and disadvantages to using a safety deposit box – the peace of mind offered by the bank's security systems can't be ignored, but this does come at a cost. Those bank fees can certainly add up.
Here's an overview of the pros and cons to consider regarding safety deposit boxes:
| Pros | Cons |
|---|---|
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Safety deposit box alternatives
Some banks don't offer safety deposit boxes anymore, and some people just aren't comfortable with the idea and therefore look for other secure storage solutions. External hard drives and cloud services are ideal for document storage, but tangible valuables require other solutions.
These are a few safety deposit box alternatives to consider:
- Digital storage (for documents)
- Fireproof lockboxes
- Home safes
- Attorney or accountant storage
- Bank vault storage
- Secure storage companies
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.What do you think about a safety deposit box?
Safety deposit boxes can give you peace of mind when it comes to protecting valuable items.
Despite their convenience, however, many people argue that they are becoming obsolete, especially with the growing use of digital storage and home security systems.
What are your thoughts on safety deposit boxes? Do you prefer to pay for one or would you rather opt for other safe storage methods? Let us know in the comments!
FAQ
What is a safety deposit box?
A safety deposit box is a secure container offered by financial institutions for storing valuable items, documents, and assets, providing theft, damage, and loss protection. They’re usually located in bank branches and can only be accessed during bank hours.
What is the cheapest safety deposit box in Canada?
The cheapest safety deposit boxes are usually offered by local credit unions. For instance, Vancity (located in British Columbia) charges an annual fee of $190.30 whereas Scotiabank charges $300 for essentially the same size box.
Are safety deposit boxes insured?
No, the contents of your safety deposit box at a bank are not automatically insured. You can, however, purchase 3rd-party insurance for the contents, or speak to your home insurance provider about including it in your current plan.
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