Safe Deposit Box

AAA

DEFINITION of 'Safe Deposit Box'

A box - usually located inside a bank - which is used to store valuables. A safe deposit box is rented from the institution and can be accessed with keys, pin numbers or some other security pass. Valuables such as documents and jewelry are placed inside and customers rely on the security of the building to protect those valuables.

INVESTOPEDIA EXPLAINS 'Safe Deposit Box'

The contents of a safe deposit box are not insured in the same way bank deposits are. The Federal Deposit Insurance Corporation insures cash deposits up to a certain limit, but due to the fact that there is no way to verify the contents of a safe deposit box, banks will not insure their contents. Also, if heirs are not told about the location of the drawer, upon non-payment, the box is considered abandoned, and its contents are turned over to the state's unclaimed-property offices for auction.

RELATED TERMS
  1. Uninsured Certificate Of Deposit

    A certificate of deposit (CD) which is not insured against losses. ...
  2. Heir

    HeirA person who inherits some or all of the estate of another ...
  3. Intentionally Defective Grantor ...

    An estate planning tool used to freeze certain assets of an individual ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Estate

    All of the valuable things an individual owns, such as real estate, ...
  6. Estate Planning

    The collection of preparation tasks that serve to manage an individual's ...
Related Articles
  1. Options & Futures

    Teaching Your Partner About Household ...

  2. Options & Futures

    9 Tips For Safeguarding Your Accounts

  3. Bonds & Fixed Income

    An Introduction To Depositary Receipts

  4. Retirement

    6 Estate Planning Must-Haves

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center