What Is a Safe-Deposit Box?

Jason Bourne finds fake passports, some cash and a pistol in his to help him go discover his identity. One of the villains in the “Harry Potter” books uses hers to hide away an object that holds Lord Voldemort’s soul. And many a heist movie hinges on this particular corner of a bank.

They’re safe-deposit boxes. Think of them as miniature vaults you can rent to store jewelry, family heirlooms, documents and other things you care about. And despite what Hollywood suggests, they’re a good option for keeping your valuables protected from robbers and boy wizards.

How safe is a safe-deposit box?

Before matters of cost or convenience, you probably want to know just how safe a safe-deposit box is. Specifically, is it safer than keeping your valuables locked up at home?

Many safe-deposit boxes sit in vaults protected by steel-barred concrete walls, equipped with heat, motion and vibration detectors, and sealed with a door that weighs more than 3 tons, according to David McGuinn, president of Safe Deposit Specialists, a financial consulting firm in Houston.

Of course, no place is completely secure or immune from incidents; banks can be hit by fire or flood and can experience mix-ups, accidents, or even break-ins. But a report by Safe Deposit Box Insurance Coverage, an insurance specialist, found that of the more than 25 million safe-deposit boxes in use across the U.S., only 33,000 were affected by such incidents in 2015, roughly 0.1% of the total.

Compare that to your home: Crimes at residences accounted for 73% of all burglaries and 17% of robberies in 2014, according to the FBI. Bank robberies accounted for 1.8% of the total.

» MORE: How to choose a bank

How much does a safe-deposit box cost?

Does that safety come at a cost? Yes, but one much lower than you might expect.

The price of a safe-deposit box depends largely on its size. A box that’s 3 inches tall, 3 inches wide and 12 inches long, one of the smaller sizes available, can cost between $30 and $60 per year. Boxes get more expensive the bigger they are, generally topping out at a couple of feet all around and costing a few hundred dollars each year.

In addition, you will want to insure the objects you keep in the box, and that will cost extra.

Unlike checking and savings accounts, safe-deposit boxes are not insured by the Federal Deposit Insurance Corp. or National Credit Union Administration. You might be able to insure a box through your existing homeowners insurance policy, or you could take out an independent policy. Costs will vary depending on the value of what will go in the box.

» MORE: Understanding homeowners insurance

How to use a safe-deposit box

Two keys are needed to access a safe-deposit box: one that you keep and one that the bank holds. This system ensures that neither party can access the box without the other present. Only a registered owner of a box is allowed access, and typically that person must produce identification and the key to the box before entering the vault.

Banks are not permitted to know the contents of these boxes, so you’ll be able to open your box and sort through it in private.

You can’t keep just anything inside a safe-deposit box; most rental agreements forbid storing items such as firearms (sorry, Mr. Bourne), drugs and hazardous materials.

Here are some more do’s and don’ts to guide you:

DO	DON'T
• Tell your family that you have a box and document how you intend to pass on the contents. • Store your items in sealed containers to prevent water damage. • Check your box once a year and keep a photograph of its contents.	• Store cash. Keep your money in a savings account or checking account, where it will be insured and perhaps earn interest. • Store items you might need in an emergency. You will have access only during business hours. • Forget to pay your rental fees. Setting up automatic payments can minimize confusion.

Other options

There are alternatives to a safe-deposit box, but they’re often either more expensive or not as secure.

Home safes or strong boxes are available for $30 to $500 and above, depending on size and strength. But again, your home is likely more vulnerable than a bank, and rather than having to crack the safe right there, a robber could just take it and work to open it later.

Private vault facilities are a viable, albeit pricier, option; rental fees for a 5-by-5-inch box can start at around $400 annually.

Whatever you decide, be smart. Know the bank before committing your items. Read and fully understand your rental agreement, so you know your rights and responsibilities. Don’t forget about your safe-deposit box after storing your items — check in regularly and let your family know it exists. And then rest easy knowing your valuables are safe.

Amber Murakami-Fester is a staff writer at NerdWallet, a personal finance website. Email: amufe@nerdwallet.com.

This article was updated June 2, 2016. It was originally published in October 2014.