What is 'Safekeeping'

Safekeeping is the storage of assets or other items of value in a protected area.

Individuals may use self-directed methods of safekeeping or the services of a bank or brokerage firm. Financial institutions are custodians and are therefore legally responsible for the items in safekeeping.

Also known as "safekeep".

BREAKING DOWN 'Safekeeping'

Individuals who place an asset in safekeeping are also issued a safekeeping receipt. These receipts indicate that the asset of the individual does not become an asset of the institution and that the asset may be returned to the individual upon request. A fee may be required for these services.

RELATED TERMS
  1. Check Safekeeping

    A safekeeping service offered by banks and other depository institutions. ...
  2. Safekeeping Certificate

    A document that represents ownership of a security or certificate ...
  3. Limited Purpose Trust Company

    A trust company that has been chartered by the state to perform ...
  4. Custodian

    A financial institution that holds customers' securities for ...
  5. Deposit

    1. A transaction involving a transfer of funds to another party ...
  6. Regulation R

    Regulation R implements provisions of the Gramm-Leach-Bliley ...
Related Articles
  1. Financial Advisor

    What are the Duties of a Custodian?

    Custodian is a financial term that describes an institution, usually a specialized bank, which holds customers’ securities for safekeeping.
  2. Retirement

    Why It's Hard a Custodian for a Self-Directed IRA

    When finding a custodian for a self-directed IRA, look for expertise in the asset classes you want to invest in and a strong BBBrating.
  3. Financial Advisor

    How to Educate Clients on Self-Directed IRA Risks

    Self-directed IRAs are not for inexperienced investors. They carry these unique risks.
  4. Tech

    Winklevoss Bitcoin Trust Names State Street As Its Administrator (STT)

    According to a recent Securities and Exchange Commission (SEC) filing, entrepreneurs Cameron and Tyler Winklevoss have named State Street as administrator for the proposed Bitcoin Exchange Traded ...
  5. Investing

    Top Alternative Investments for Retirement

    Diversify your retirement portfolio with alternative investments – peer-to-peer lending, precious metals, even Bitcoins.
  6. Financial Advisor

    Self-Directed IRA Exemption: Advisors Take Note

    Here's how the new fiduciary rule impacts custodians of self-directed IRAs and clients who are seeking advice.
  7. Retirement

    Pros & Cons of Managing Your 401(k) Yourself

    The decision to manage your 401(k) investments should not be made lightly. These pros and cons will help you determine if it's for you.
  8. Insights

    A Guide To Returning Christmas Gifts

    The Christmas season can be stressful, but returning unwanted gifts can be even more stressful. Here are some tips to help you avoid the stress.
  9. Retirement

    Consolidating Your Retirement Money

    By midlife, you're likely to have accumulated a string of IRAs, 401(k)s and the like. This tutorial helps you organize them around your retirement goals.
  10. Taxes

    Which Receipts Save Big Money at Tax Time

    Don't wait to April 13th to set up a smart receipt-filing system. These 7 categories could save you some significant money.
RELATED FAQS
  1. Are custodians barred from engaging in commercial banking?

    Learn how bank custodians are allowed to engage in commercial banking as well as other investment activities according to ... Read Answer >>
  2. Will technology ever disrupt the role of the custodian bank?

    Learn why some consider new trading and account technology a disruptive threat to custodian banking and how banks are adapting ... Read Answer >>
Trading Center