The end of bank safe deposit boxes: what you need to know

Safety deposit boxesSeveral high street banks have stopped providing safe deposit boxes, potentially putting valuable and expensive items at risk.

Customers who rely on these boxes to keep treasured pieces safe are now left with few options to make sure these items are protected.
%VIRTUAL-SkimlinksPromo%
The end of deposit boxes
Safe deposit boxes can be used to store expensive items and until recently most banks provided them to current account holders for a yearly fee.

But because of cost-cutting measures they are now being phased out by many.

Barclays, for example, has started withdrawing the boxes from branches and they'll all be gone by the end of the year. Barclays has written to customers and given them six months to clear out the boxes.

The bank blamed storage issues for the decision and said the scheme had become complex and costly.

Other banks, such as Lloyds and NatWest/RBS, were slightly less abrupt and just shut the scheme down to new customers.

The Co-op has also stopped this service while HSBC says it only has around seven branches (out of 1,189) which offer the lockers. At Santander and Nationwide this has never been an option.

Extra security
Safe deposit boxes can be used for anything valuable, such as artwork, legal documents or jewellery and are stored in a bank branch. Often they are used to store collections of jewellery which are handed down through families, particularly in Asian communities.

It's a much safer way to store expensive items as the boxes, or lockers, are kept in the bank under CCTV and behind a thick metal door. Customers are then given a set of keys, or sometimes a swipe card, and can access the contents of their box when they want (during working hours).

Although anything can be held in the box, customers will need to sign a document stating it doesn't contain anything illegal, such as drugs, guns or laundered money.

The contents also need to be covered in the customer's home insurance policy.

The banks still offering security lockers
Metro Bank is one of the only banks to provide these deposit boxes, which it says customers made clear they wanted. There are five different sizes available, which range from £120 to £480 a year, and each box has two keys – one for the customer and one for the bank.

Craig Donaldson, CEO for Metro Bank, explains: "We're committed to offering our customers the very best in service and convenience, and the fact that they want somewhere to keep their valuables, means that we'll keep on building safe deposit boxes. It's as simple as that."

State Bank of India also provides the boxes in five of its ten branches in the UK and they cost between £125 and £250 a year.

10 PHOTOS
10 wealthiest small towns in the UK
See Gallery
The end of bank safe deposit boxes: what you need to know

Windsor is top of the tables for the UK's wealthiest towns and villages, according to research published by WealthInsight. The Berkshire town is home to 850 dollar millionaires (people with assets of more than US$1m, or £653,424)

.

Weybridge is second in England with a population of 19,500 and 800 to 850 millionaires.

Sevenoaks has a population of 18,500 and between 800 to 850 millionaires.

Andrew Amolis, analyst at WealthInsight said Beaconsfield's position, at number four, was "unsurprising." "It has the highest average house price outside of London (over US$750,000 per home). It also has the highest average income per household of US$110,000."

Henley-on-Thames, at number five on the list, is the town where numbers of millionaires is growing fastest, the research suggests. The number of so-called high net worth individuals increased by 25% between 2007 and 2012. "This compares very well with general UK millionaire numbers which declined by 9% over that period," said Andrew Amolis, analyst at WealthInsight.

Marlow just missed out on a top five rank with 14,000 inhabitants and between 350 and 400 millionaires in residence.

Hale is the highest-rated town closest to Manchester with a population of 15,300 and between 300 and 350 millionaires.

"Alderley Edge is considered to be the most affluent town in the North West, particularly Whitebarn Road which is one of the most expensive streets in the UK," said Andrew Amolis, analyst at WealthInsight.

Bray is number nine on the list and is home to Heston Blumenthal's Fat Duck restaurant. Bray has a population of 4,600 and counts more than 300 millionaires among its residents.

Ascot finishes tenth in the list with a population of 11,600 and between 250 to 300 millionaires.

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE


The right insurance
Wherever you keep your valuable items, you need to make sure they're insured. Valuable items will need to be listed on your home insurance policy and will come under the 'personal possessions' cover.

The value covered varies between insurers. But eSure, for example, will cover up to either £10,000- or £20,000-worth of valuables. Any items over £1,500 will need to be listed.

As well as insurance you'll also need to keep hold of documents such as: the original purchase receipt, if you have one, a valuation, certificate of authenticity, original box, and photos of the items.

Some insurers, such as eSure, Aviva and Direct Line, will also give you a discount if your goods are held in a safe deposit box because they're seen as more secure, but you'll need to tell them if you take the items out of the box.

Luke Parker, underwriting manager at Direct Line home insurance, explains that for pieces which are removed, cover can be agreed for a short period, typically up to 14 days for items of jewellery up to a value of £20,000, and the insurer may charge a small additional premium to do so.

"Items regularly taken out of the bank, for example every weekend, are generally not accepted unless a customer has adequate security at home to protect the items at risk. If you have any items of high value, the best advice is to speak to your insurer," he adds.

Other alternatives
Most of the banks still offering safe deposit boxes only allow current account holders to sign up so they won't be an option for everyone.

There are many private companies offering the same service, but the prices vary wildly. These are also a lot more expensive but often guarantee to cover goods up to a certain value if stolen. Metropolitan Safe Deposits, for example, charges between £132 and £2,180 per year and includes cover with Lloyds of London for up to £15,000 worth of goods.

Whichever option you choose you must make sure you tell your insurer to guarantee your things remain protected.

Compare home insurance policies

10 PHOTOS
Most complained about financial products
See Gallery
The end of bank safe deposit boxes: what you need to know

Figures from charity Age UK show that 29% of those over 60 feel uncertain or negative about their current financial situation - with millions facing poverty and hardship.

Even though saving for retirement is not much fun, the message is therefore that having to rely on dwindling state benefits in retirement is even less so.

To avoid ending up in this situation, adviser Hargreaves Lansdown recommends saving a proportion of your salary equal to half your age at the time of starting a pension.

In other words, if you are 30 when you start a pension, you should put in 15% throughout your working life. If you start at 24, saving 12% of your salary a year should produce a similar return.

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE


More stories
Read Full Story

FROM OUR PARTNERS