Safety Deposit Box: What To Store And Where To Get One
Safety deposit boxes, also called bank safe deposit boxes, have long been an option to securely store valuables away from your home. You can rent a box from your bank or credit union for an annual fee. Then, place your valuables into the box and hold onto the key. You can access your box during the bank’s normal business hours.
This service gives you peace of mind knowing that no one else can access the box and your belongings since it’s inside a secure vault within the bank. While a safety deposit box is useful, there are things you shouldn’t store in it. We’ll explain the ins and outs and look at costs to help you decide whether or not to rent one.
Key Takeaways
- For an annual fee, safety deposit boxes provide secure storage for valuable items like jewelry and collectibles.
- 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.
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 depend on available space.
What shouldn't you store in a safety deposit box?
While safety deposit boxes are excellent for safeguarding various items, certain items and assets are better kept elsewhere due to accessibility or legal considerations. Here are some examples.
- Cash for daily expenses or emergencies: Storing cash in a safety deposit box for everyday expenses or emergencies 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 travel. 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 and the bank or institution you're renting it from. These rental fees are typically charged annually.
All of Canada's big 5 banks offer safety deposit box rentals, though not every branch location has them, and not all sizes are available.
This table lists the annual fees charged by the big banks for renting safety deposit boxes:
| Bank | Safety deposit box fees |
|---|---|
| BMO | * Small: $70 * Medium: $110 * Large: $230 * Extra large: $350 * Super large: $500 |
| CIBC | * Small: $80 * Medium: $135 * Large: $250 * Extra large: $500+ |
| 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: $80 * Medium: $135 * Large: $200 * Oversize: $10.00 per sq. inch |
It’s generally safe to assume that you will pay around $60 - $80 annually for the smallest box and up to $500 for the largest.
Banks with safety deposit boxes
The big 5 banks in Canada – RBC, TD, Scotiabank, BMO, and CIBC – all offer safety deposit boxes at their 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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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?
You can rent a safety deposit box, a secure container at a financial institution, for an annual fee that’s based on the box’s size. You can store valuable items, documents, and assets, so they’re in a safe location.
What is the cheapest safety deposit box in Canada?
The cheapest safety deposit box will probably be small and offered by a credit union. For instance, you can rent a small safety deposit box through Vancity for $55.10 per year or from TD for $80 a year.
Are safety deposit boxes insured?
Because of the private and varying nature of its contents, banks don’t provide insurance on the belongings in your safety deposit box. Instead, you’re advised to purchase third-party insurance for your valuables (or talk to your home insurance provider about adding it to your policy).
How much is a safety deposit box?
The price of a safety deposit box depends on the size of the box and the fees charged by the financial institution. Some banks and credit unions offer free safety deposit boxes if you have specific accounts.
Is it a good idea to put money in a safety deposit box?
No, it’s generally not a good idea to store money in a safety deposit box. Should an emergency arise, you would want immediate access to your money. Plus, your money won’t earn interest in a safety deposit box.
Why are banks no longer offering safety deposit boxes?
With the growing popularity of digital banks and the costs associated with safety deposit boxes, their popularity is waning, so some banks have decided to stop offering the service.
Is it legal to keep cash in a safety deposit box in Canada?
It’s up to the financial institution to decide if it allows cash in safety deposit boxes, which is why it’s so important to read a bank’s terms and conditions before renting a safety deposit box.
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