Is a safe deposit box really necessary for the average person?

May 13, 2007 6:02 PM

Is a safe deposit box really necessary for the average person?

I understand that you would want a safe deposit box if you could put something in there that would be irreplaceable like a cherished home video or something, but the other things I could imagine one would put in a safe deposit box like jewels or household papers like deeds and insurance policies or something, is that stuff really irreplaceable or are you just paying to safeguard against the inconvenience of having to replace those things? Can't you just make copies of papers and have the jewels insured?

posted by GleepGlop to work & money (16 comments total)

Well, if you die and leave papers, a safe deposit box is easy for anyone with the key and ID to access. Copies of your will and insurance aren't going to let your survivors do much in a short time period.
posted by acoutu at 6:13 PM on May 13, 2007

I suppose it depends on what you mean by "need". It seems like that's a decision each person would have to make for themselves. A lot of it is peace-of-mind.

When it comes to that kind of thing, there's no such thing as an "average person". The fact that you, or I, may decide we don't need one doesn't mean it's the wrong thing for everyone else to do.
posted by Steven C. Den Beste at 6:15 PM on May 13, 2007

I think SCDB is spot on about "average" not being meaningful here.

I've been meaning to get a safe deposit box. Replacing any given document might be only a nuisance, but after a true catastrophe like a house fire, it would be really nice if replacing all those documents weren't among my many problems.

It'd also be good as a first candidate for an off-site backup of my virtual data, something I know I should do and haven't.
posted by Zed_Lopez at 6:26 PM on May 13, 2007

For estate documents, safe deposit boxes suck. My lawyer told me that anything in the safe deposit box becomes part of the estate. so if you're estate planning documents are in your safe deposit box, they become inaccessible. You're better off with a home fire safe, or backup copies at parents or trusted friends.
posted by cosmicbandito at 6:28 PM on May 13, 2007

There are many documents (bearer bonds, for instance) that must be original: copies are worthless. A photocopy of a will may be worthless in your jurisdiction, or it may merely mean that your survivors will have to go through a rather extensive and expensive court proceeding in order to even begin to probate the will. In some jurisdictions, copies of titles and deeds are also worthless: the original is the only one that matters.

Jewels are rarely insurable to their full market value, and even if they were you can't insure against sentimental value.
posted by watsondog at 6:29 PM on May 13, 2007

Or deposited with your lawyer. That would make all sorts of sense, I think.
posted by dirtynumbangelboy at 6:30 PM on May 13, 2007

Lawyers don't often keep things for clients, though, and they can charge more per year than a safety deposit box.

And most lawyers only retain files (including wills) for seven years.
posted by watsondog at 6:42 PM on May 13, 2007

A lot of money-management books have lists of things you're supposed to keep in safe deposit boxes. It includes things like your homeowners insurance policy (so it doesn't burn up in your desk drawer during your catastrophic home fire). I have those sorts of documents in ours, but find that updating the box doesn't happen often enough--I have a file called "for the safe deposit box" where I put that stuff, and it can get a bit overloaded between visits. So one needs both the box itself, and a system for using the box.

As far as "paying for the inconvenience," it's really nominal--I pay $20/year for mine. That seems like mighty little to pay to not have to spend the time figuring out how to replace each document, and then dealing with the assorted inevitably incompetent bureaucracies.
posted by not that girl at 6:44 PM on May 13, 2007

I pay $49/year for a safe deposit box. I'm in NYC so it's probably less elsewhere in the country. Among other things I keep a home inventory videotape, original marriage certificate, some original bond certificates, etc. As noted above it's not a good idea to keep your will in there. I keep a photocopy. Two selling points for me - in contrast to the rest of the bank, the vault personnel are very polite and helpful (once you authenticate) and the turn-of-the-century bank vault is a mechanical work of art.
posted by dudeman at 6:45 PM on May 13, 2007 [1 favorite]

No "need" for the "average" "Joe", *but* for about $30 annually, you get to feel really **cool** about yourself and tie up the time of a bank employee who will probably call you ma'am or sir because they really don't know if you're keeping Bazooka Joes or $640M in German Bearer Bonds in there.
posted by valentinepig at 7:10 PM on May 13, 2007 [1 favorite]

It boils down to "piece of mind". Imagine the worse case scenario. Assuming that you have considered what you would put in there what would be the outcome if you lost it? Weigh that loss against the cost of the safe deposit box and you will have your answer.
posted by bkeene12 at 7:54 PM on May 13, 2007

If safe-deposit boxes were necessary for the average person, we'd probably see a lot more advertising for them.
posted by rhizome at 8:11 PM on May 13, 2007

For estate documents, safe deposit boxes suck. My lawyer told me that anything in the safe deposit box becomes part of the estate. so if you're estate planning documents are in your safe deposit box, they become inaccessible.

Not if you put your executor or someone else on the list of people who are allowed keys. For example, some people name their grown children, trusted friend, lawyer or an executor, then put the key in a mutually agreed upon location. (Since you don't want that person to have random access.) In a similar way, many elderly people have a family member named to a joint account. Of course, it all depends on the reliability/trustworthiness of the person in question.
posted by acoutu at 8:15 PM on May 13, 2007

Thanks for the answers, many of them were good... aye.
posted by GleepGlop at 8:16 PM on May 13, 2007

GleepGlop, safety deposit boxes are tax deductible in Canada if you keep things like bonds and stocks in them. You only need one to qualify.

I use ours for our passports, marriage certificate, birth certificates and spare keys for assorted things. Also I've got a slip of paper with my truecrypt pass phrases (in cypher, I'm not an idiot) on it and a floppy and usb key with my header information. Finally I use it for my secondary offsite storage of my digital images. MiniDVD-Rs will fit in a standard box.

I've heard of people keeping there emergency credit cards in the box. Resists temptation and keeps thieves from stealing them from your desk.
posted by Mitheral at 11:02 PM on May 13, 2007

I think that the average singleton renter may have little use for one, but the average married homeowner certainly does. One thing many people don't think of that should be in there: a videotape of your possessions. Just take the camera through the house and get a record of all your important stuff, and store that at the bank, where it will still be when your house is obliterated by a tornado or hurricane or alien beam-weapon.
posted by dhartung at 1:18 AM on May 14, 2007