Even though they’re not as trendy as before, safe deposit boxes are still wanted.
In the United States, there are around 25-million of them, meaning there’s about one for every thirteen Americans. People use these at banks to keep personal items and valuables.
If your bank wants to offer this traditional service, make sure your policies protect both you and your customers. When establishing or reviewing practices of your safe deposit box in Singapore, remember these 10 key facts.
1: Learn about What to Keep and What Not to
A safe deposit box is an excellent place for important documents like birth certificates, property deeds, and car titles. Here, you may also store U.S. Savings Bonds, family keepsakes, valuable collections, and home content photos for insurance.
Just avoid putting things you might need quickly, like passports or powers of attorney, in the box. Talk to a lawyer for advice on where to keep your original, as it will be based on state laws.
2: Safer Than Your Home
When promoting safe deposit boxes to customers, highlight that these boxes are safer than home safes. Bank boxes are stronger and offer extra protection against natural disasters.
Plus, they benefit from the overall security of the bank, making it more challenging for thieves to access them compared to home safes, which are easier to break into.
3: The Boxes Aren’t Foolproof Though
While banks are generally secure, nothing is foolproof, and natural disasters can affect them too. Each year, around 33,000 safe deposit boxes face damage from accidents or natural events.
To give you an idea, about fifteen million homes in the United States are impacted by natural disasters annually.
You can use this data to highlight the importance of safe deposit boxes. However, remember that safeguarding your bank from natural disasters is crucial, as it can pose a greater threat than theft.
4: Bank Robbers Avoid Deposit Boxes
You know, one reason why those bank safe deposit boxes are considered safer than keeping a safe at home is because burglars just don’t seem to be into them.
Like, in the last five years, the FBI counted 19,000 bank robberies, but get this, only 44 of them had anything to do with those deposit boxes.
So, breaking it down, we’re talking about around 4,000 bank heists every year, and only a tiny 8 or 9 bothering with the deposit boxes.
Now, compare that to nearly a million home break-ins happening yearly! I mean, your home is like 250 times more likely to get hit by burglars than a bank.
Now, here’s the kicker: we don’t have the exact numbers on how many of these home break-ins involve safes, but it’s kind of common sense to think that if a thief is in your home, they’re going for the good stuff, right?
5: The Liability Protections Offered by Boxes Can Vary
So, here’s the deal: there aren’t any rules saying banks have to ensure the stuff you stash in those safe deposit boxes. But, hey, some banks go the extra mile and throw in a bit of coverage as a nice customer service touch.
Now, get this – different banks do it their own way. Some might offer a cool $500 in coverage, while others could go all out with a whopping $25,000. The trick is that a bunch of them tie the coverage to how much you pay to rent the box each year. So, it means that they can cover you up to 10 times the annual rental fee. It’s like a little extra security blanket for your valuables.
6: You Can Use Homeowner’s Insurance
Okay, listen up – even if the law isn’t breathing down your neck to give customers liability protection for their safe deposit box goodies, it’s just good vibes to help them out, you know?
Think of it as leveling up your customer service game. It’s like saying, “Hey, we got your back!” So, here’s a tip: nudge your customers to have a chat with their home insurance squad.
Even though the good stuff is chilling in the bank box and not at home, their home insurance might still have their back.
But, and it’s a big but, they shouldn’t just assume everything’s covered. They gotta hit up their insurance peeps and make sure.
Especially if they’re harboring some serious bling or fancy items – those might need an extra policy boost for extra coverage. It’s all about playing it safe and keeping those customers happy.
7: The Customers Can Get Banned
Hey, let’s talk about keeping cash in your safe deposit box – not a great plan. It’s like hiding money under the mattress, but less cozy.
Here’s the deal: if your bank hits a rough patch and has to close shop, FDIC insurance has your back for cash in your account, but not for the stash in that box. So, keeping cash there is like playing without a safety net.
And here’s another kicker – cash in that box won’t beat inflation.
It’s like your money taking a slow dance with losing value. So, to save your customers from that financial fumble, think about adding a rule to your safe deposit box agreement saying, “No cash allowed.” It’s like giving their money a better game plan.
