Definition
A safe deposit box, also known as a safety deposit box, is an individually secured container, usually held within a larger safe or bank vault. Safe deposit boxes are generally located in banks, post offices or other institutions. Safe deposit boxes are used to store valuable possessions, such as gemstones, precious metals, currency, marketable securities, important documents, or computer data, that need protection from theft, fire, flood, tampering, or other perils. In the United States, neither banks nor the FDIC insure the contents. An individual can purchase insurance for the safe deposit box in order to cover e.g. theft, fire, flooding or terrorist attacks.
Safe Deposit Box
What is ‘Safe Deposit Box’
A box – usually located inside a bank – which is used to store valuables. A safe deposit box is rented from the institution and can be accessed with keys, pin numbers or some other security pass. Valuables such as documents and jewelry are placed inside and customers rely on the security of the building to protect those valuables.
Explaining ‘Safe Deposit Box’
The contents of a safe deposit box are not insured in the same way bank deposits are. The Federal Deposit Insurance Corporation insures cash deposits up to a certain limit, but due to the fact that there is no way to verify the contents of a safe deposit box, banks will not insure their contents. Also, if heirs are not told about the location of the drawer, upon non-payment, the box is considered abandoned, and its contents are turned over to the state’s unclaimed-property offices for auction.
Safe Deposit Box FAQ
Is it safe to put money in a safe deposit box?
What items are not allowed in a safe deposit box?
Can you put guns in a safe deposit box?
Who has access to a safe deposit box?
Can a safe deposit box be garnished?
Further Reading
- London and New York as a safe deposit box for the transnational wealth elite – journals.sagepub.com [PDF]
- Financial aspects of the social security “problem” – www.tandfonline.com [PDF]
- Financial markets and economic growth – onlinelibrary.wiley.com [PDF]
- On harnessing the potential of financial inclusion – papers.ssrn.com [PDF]
- Bitcoin–its economics for financial reporting – onlinelibrary.wiley.com [PDF]
- A transactions cost approach to the theory of financial intermediation – www.jstor.org [PDF]
