Notes in SDBs

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I was told today that it is the banks policy that no cash can be kept in a safety deposit box.  Has anyone heard of this before.

FRIEDSQUID

I was told today that it is the banks policy that no cash can be kept in a safety deposit box.  Has anyone heard of this before.

FRIEDSQUID

Yes this is a standard policy in most Banks. Basically the bank would rather you store a 1935 French Text $500 note in their account rather then the SD box.

Then again, what the bank does not know will not hurt them. Just make sure a straight face is kept when signing your life away on the dotted line reading that you will by no means be storing any paper money in their SD box 

I have heard this.  
Having worked in a bank, this has never come up.  They might tell you this, in the case that they see you going in there to retrieve cash, not knowing that it is a collection (ie suspicious activity).  This is for money laundering preventative measures.

Having a collection in a SD box is common safety procedure.

It is your safety deposit box.  If you feel that your mattress is not the safest place, then you buy a SD box.  

http://www.northpeacesavings.com/personal/banking/safety_deposit_boxes.asp
"As you have total control of your safety deposit box, North Peace Savings assumes no legal responsibility for its contents.  We suggest that you arrange insurance for your stored valuables."

More interesting reading (US based)
http://bellaciao.org/en/article.php3?id_article=10012


Found more sites that speak of cash being a regular SD box item.


Now.... I am going to go get some small print print-offs to see EXACTLy what they say. I am very curious.

My bank knows that I keep money in my SDB.  In fact, they get all excited when I come in because they know they are going to see some cool notes.

In fact, when I signed up for the SDB a couple of weeks ago, I specifically said it was for my banknote collection and they watched me put my banknotes in the box.

Brad

Do you deal with a bank trust company or credit union?  Maybe different institutions have different rules


FRIEDSQUID

My SDB is with TD.

Interesting because mine is with TD Canada Trust as well and they showed me the actual written policy in regards to contents in a SDB.

FRIEDSQUID

 I have had my collection in a safe deposit box for 20 years and have never been told this or heard of it. My box costs $160.00 a year so I guess they don't mind that revenue.

Some of the bank employees have enjoyed seeing Dominion of Canada notes they didn't know existed. The $4 note and 25 cent notes are the favorites.

As I was told the policy is that currency is not permitted to be kept in SD boxes. That being said, the particular bank I deal with new as well as enjoyed some of my collection as I was putting it in the SD box. I asked their reasoning and she explained that it is to prevent people from hiding large amounts of 'laundered' / illegally earned money from the Government or other law enforcement. She then went on to say that the bank also did not particularly enjoy individuals keeping 10s of thousands of dollars (not for collecting purposes) in their SD boxes opposed to depositing it into accounts where the bank could claim it and loan it out.

I'm sure most banks probably don't even know the policy exists when in fact it does exactly for the reasons stated in the other post. Most employees say what they don't know they don't want to know and ignore it.
The bottom line is if the bank was robbed and SDB remove would they cover you for what you lost or not.  Something to think about.  It can happen.

FRIEDSQUID

It is my understanding that, despite its name, a Safety Deposit Box is not a deposit and is therefore not insurred by the bank.  They have no way of truly knowing the value of the contents of the SDBs so it would be impossible for them to insure it anyway.

You should seek private insurance for the contents of your SDB.  In my case, my home insurance covered up to $500 for numismatic materials in a SDB and I was able to extend the coverage to insure my full collection.

Brad

So the term safety deposit box is very misleading.
It is not SAFE, nor is it considered a deposit?

Alot of money every year just for a box???

FRIEDSQUID

Standard coverage for the contents of a box are limited to twice the annual fee or something like that, so you need private insurance to cover the contents

So the term safety deposit box is very misleading.
It is not SAFE, nor is it considered a deposit?

Alot of money every year just for a box???

FRIEDSQUID

It is misleading, at least the 'Deposit' part is.  Safety Deposit Boxes are also called Safe Deposit Boxes, which is less misleading since it alludes to the fact that the box is in a safe.

You are paying for the privilege of keeping your valuables in a bank vault.  I figured my collection was safer there then under my mattress, where I previously kept it.

I think you might be missing the point as to why someone gets a SDB.   More information regarding SDBs and why one might consider getting a SDB can be found here: http://www.foreignborn.com/self-help/banking/10-sd_boxes.htm .

Brad

Interesting discussion.  I too have had a SDB with BMO for many years now and never thought to ask or was even aware of this policy. 

While there are a number of banknotes in the box, I also have a 8mm video tape and a savings bond.  True most of the contents of this small box is paper money, but at least I know where it is and there's a lesser chance of the notes gettting damaged by humidity.  I live in a damp (at times) basement apartment.