There is a widely held belief that federal and state laws render it illegal for you to store cash in your safe deposit box. That is simply not true. There are no federal or state laws prohibiting box holders from placing cash in their safe deposit box.
Bank and financial experts have long counseled against storing cash in your safe deposit box. Many bank rental agreements prohibit customers from placing cash in their safe deposit boxes. This is difficult for banks to enforce since they do not know what you are placing in the box.
Certainly, banks benefit from the fees and commissions earned from cash deposited with them.
But is it in your best interest?
Despite the advice of the financial professionals, many people continue to place cash in their safe deposit box. The State of Pennsylvania found that almost 20% abandoned boxes contained cash. So why do people continue to place cash in a safe deposit?
For some, it’s simply a savings tool. If they deposit cash in their bank, it is easy to access and spend. If they place it in their box, they are less likely to spend that money. In that same vein, many people place cash in the box to ensure they have money for an emergency. For others, it is protection against a financial crash impacting the banking system.
But in today’s world there are new threats. Your bank’s computer system could be hacked or your accounts frozen, leaving you unable to access cash for some period. Or what if your identity was stolen and your bank accounts were looted? Having the ability to access cash in your safe deposit box to hold you over during times of crisis is a reasonable step to take.
Placing cash in a safe deposit box is a personal decision based on your needs and comfort. If you are doing so, our insurance can provide additional peace of mind.
Restrictions in your rental agreement do not impact your ability to insure cash with us and recover the loss if the cash in your box is stolen or destroyed.