Why Banks Are Closing Their Safe Deposit Boxes

Nov 28 04:44 2019 Nancy Whitman Print This Article

For hundreds of years, banks have been offering their Vaults for Security Lockers and Safe Deposit Boxes.  Banks have been the obvious choice for securing valuable for many people. These secure storage lockers and boxes allow people to keep important documents, sentimental possessions, and valuable assets like bullion away from potential risks such as theft, damage, and natural disasters such as fire and flood.

With advances in technology banks have been modifying their services they provide to their customers. Basic services such as deposit and check accounts and ATM’s (Automated Teller Machines) continue to proliferate.  Secure lockers and Safe Deposit Boxers along with other custodial vaulting services are becoming a thing of the past.

So,Guest Posting why are banks closing their safe deposit boxes? Plus, what options exist for you to store you high-value assets away from home?

Why are Banks Closing Down Their SDBs?

In Australia and all over the world, more banks are closing down their safe deposit boxes. Many banks are now stopping this service for new clients or are offering to transfer their boxes to other locations or service providers.

There are a handful of reasons why banks are doing this. The normal suburban Branch is no more, and banks are closing, downsizing and relocating to smaller Retail outlets such as the Pop-up-Bank or Micro Bank branch.  Many cases these new branches do not have the vaulting facilities offered by the older average suburban branch.

One main reason is that Safe Deposit Boxes are not the core business model offered by banking institutions.  Therefore, they no longer see safe custody and SDB’s as a service to be continued. No bank really wants a client back of house as they see this practice as risky.  In addition, the management, additional security and Insurance plus the oversight required for a high security safe deposit box facilities cost too much.

The status quo in the banking system nowadays focuses on mobile and internet sales which often results not only in branch closures and therefore SDB closures as well. 

Private Vaulting Facilities: A Better Option for You

Unfortunately, many banking institutions have not given their SDB customers ample time to find an alternative as they close down their safe custodial services. Back in 2013, the Sydney Morning Herald reported that ANZ sent out a notice their clients that they needed to clear the contents of their safe deposit boxes in three months.

ANZ did not provide alternative arrangements for their customers’ valuables.   Many were left trying to find a suitable safe deposit box services on their own.  Banks like National Australia Bank, CBA, and Westpac were also downsizing their safe custodial services simultaneously as well.

Since banks are closing safe deposit boxes in Australia and various parts of the world, you may be wondering what options are left available for you when you need secure custodial services. The good news is that there private vaulting providers in existence today who are able to cater to your needs. As well as safe storage of your priceless possessions, many private facilities also allow you to buy / sell and store your Bullion (Gold, Silver and Platinum) in the one safe premise.

All reputable private facilities are non-government, purpose-built premises that are located safe distances from the threat of natural disasters. Quality providers protect your valuables against major threats including theft, robbery, fire, flood, and government or third-party intrusion. They will typically offer a wide range of services including:

What’s more, they will also generally offer discounts for long-term rentals through loyalty programs as well as complimentary insurance of up to $20,000 per box through underwriters.

Source: Free Guest Posting Articles from ArticlesFactory.com

About Article Author

Nancy Whitman
Nancy Whitman

Nancy Whitman is a writer and contributor to Private Vaults Australia, leading provider of safety deposit boxes and related services.

View More Articles