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Have you ever watched bank robbery movies, or better yet, spy movies where secret keys lead to random safe deposit boxes full of cash, bags of coins, precious gems, weapons, damaging pictures, evidence and clues? You may find yourself asking, “Is this what Safe Deposit Boxes are used for?”
Safe deposit boxes at banks have been around for a long time since the dawn of the bank vault. Their purpose is to provide their owners with a secure place to store valuable items in bank vaults versus home safes where less sophisticated thieves, fires, the elements, and other possible disasters could otherwise put the contents at risk of loss.
Although safe deposit boxes offer far more security than home safes, it’s important to understand how they should be used and the potential risks involved. It may not seem obvious to some; putting cash in your safe deposit box is NOT FDIC insured. Only your bank accounts are covered. Contents of the boxes may also not be covered under your renter’s or homeowner’s insurance policies.
We all have important documents and cherished items we want to keep safe. Using a safe deposit box can limit your access and may even be a hassle once a death has occurred and a death notice has been received by the bank that would then restrict access by court decree.
Home safes may end up being a better alternative and most safes today can withstand certain levels of fire, weather, and damage. They are far more accessible and manageable. Many safes are rated to give consumers choices on various levels of security and protection. The manufacturers may even guarantee the contents if their products fail.
But if you are still interested in bank safe deposit boxes, consider the following “key” points when using them:
Safe deposit boxes do serve a purpose; however, these days they are becoming less relevant in the digital world. When choosing to use one, it’s important to consider the requirements, risks, legalities and these best practices.
Disclaimer:
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by STA Wealth Management, LLC), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from STA Wealth Management, LLC. Please remember to contact STA Wealth Management, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. STA Wealth Management, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of the STA Wealth Management, LLC’s current written disclosure statement discussing our advisory services and fees continues to remain available upon request.