Considering a safe deposit box? Here are four things to keep in mind before you choose one. Pre-authorization, Cost, Contents, and Security. What are the benefits of using a safe deposit box? Read on to find out more. Whether you need to use a safe-deposit box for business purposes or merely to store personal items, you can be assured of your items' security. This article will help you choose the right safe-deposit box for your needs.
Pre-authorization
In order to authorize your safe deposit box service, you should first review the 'Pre-authorization for safe deposit box' process. This process allows you to set a contract that is valid for a specified number of days. To authorize a contract, invoke the 'Safe Deposit Box Authorize Contract' screen by typing DLDTRAUT in the Application Toolbar, then enter the contract reference and click 'Authorize'. If you decide that you no longer want the contract, you can reverse it by selecting the 'Reverse' icon in the toolbar. Similarly, you can also reverse a contract that has a financial impact on you or an expiration date that is longer than the application date.
Cost
The cost of safe deposit box rental will vary depending on the size of the box, the bank and the region. The price ranges from about $18 per year to over $140 per year. The larger the box is, the higher the rental price. Safe-deposit box fees are based on square inches, so a 10 x 10-inch box will cost $100 a year. Safe deposit boxes come in sizes ranging from three x five inches to ten x fifteen inches. Some banks even offer discounts for customers with certain accounts.
Contents
Despite the benefits of a safe deposit box, its contents are not insured like bank deposits. The Federal Deposit Insurance Corporation (FDIC) only insures cash deposits up to a certain limit, but banks are not required to insure valuables stored in safe deposit boxes. Also, bank safe deposit boxes cannot be verified, so if you do not pay for your box, the bank could abandon the contents and sell them at auction.
Security
A safe deposit box is a vault for your valuables that's insured by the Federal Deposit Insurance Corporation (FDIC). However, unlike bank accounts, safe deposit boxes are not insured by the bank. While the FDIC does cover the money you deposit in a bank account, it does not automatically guarantee your belongings will be protected in case of a disaster. For this reason, you should consider purchasing insurance to cover the cost of replacing your valuables in the event of theft or damage.
Insuring valuables
Most banks do not offer insurance for valuables kept in safe deposit boxes. However, you can add this type of coverage to your homeowner's insurance policy and save money. This insurance usually covers items up to $1,000, so it is an excellent choice for protecting your valuables. Taking an inventory of your valuables and storing them at home or in a safe deposit box is a good idea as well. If you have multiple items in a safe, you may need to get a separate insurance policy.