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Best of: The Safe Deposit Box, Our Friend

in Best of, Safety Deposit Box

Another chest nut from the past, however, now with new rules, you will not be allowed to write off your Safety Deposit Box (next year starting March 31 2013 so in 2014) on your investments, keep that in mind!

The Safe Deposit Box, Our Friend

Safety Deposit Boxes

Safety Deposit Boxes

There are very few things in a bank I view as necessary, but one thing I do view as really important is my Safety Deposit Box. In my Safety Deposit box I keep bonds, an old stock certificate, and my wills. Why couldn’t I just keep those things at home? I don’t want to do that thanks. The advantages of a Safety Deposit box are many to me (my opinions follow):

  • I can write off the cost of my box rental as a carrying charge (in Canada you can do this), that’s good. I pay about $30 for the box, before my tax kickback on the write off.
  • This is OFF-SITE storage from my house. I should really put copies of my insurance policies in there as well, that way if someone breaks into my house or my house burns down (God forbid), I have a copy SAFE somewhere else. Might be good to put a home inventory in there too
    • I love writing in this blog, because many times I think of things while writing, I wouldn’t have!
  • The bank is more secure than my house ever will be. Safety of this information is really important, and someone else worrying about it, is one less thing for me to worry about.
    • Who is going to break into a bank and then find my safe deposit box, and then steal what is in it? Maybe someone reading my blog? Hope not :-).

These reasons are why I have a safe deposit box, and not a home strong box, or wall-safe to protect my important papers. No matter HOW you decide to protect your important papers and information, DO IT! Use a Safety deposit box, a strong box, a wall-safe, but keep those papers safe! It’s important. It’s all part of the Financial Plan.

 

{ 5 comments }

  • jase murphy November 23, 2013, 2:52 AM

    Safety deposit box have various benefits. And it’s rightly mentioned that they are our best friend as they are more secure than our house will ever be. It’s a really informative blog.

    Reply
  • Farris Jornales April 15, 2013, 6:34 AM

    I totally agree with you about the bank being safer than my home (or anyone else’s). The Sydney accountants I know also tell their clients how advantageous it is to have a safety deposit box.

    Reply
  • Bet Crooks April 13, 2013, 12:31 PM

    We will keep our SDB even after we can’t claim it because
    a) when we travel all of the good jewellery goes into it
    b) we have important papers like an overseas birth certificate in it that would be a MAJOR MAJOR pain to replace
    c) we have various financial papers and stock certificates in it
    d) we have DVDs of most of our photos in it
    e) we have money in it (I know this is against the rules for SDBs, but it’s more so we don’t lose the foreign currency by squirreling it away in the house somewhere. We also have some collector coins in it because it would be sad if they were stolen, even though they’re not worth much.
    f)our lawyer has our wills and POAs but we have copies of them in the box for reference
    g) all the family SIN cards and birth certificates and citizenship cards and stuff are in there. Again, it’s more to avoid accidental loss. It’s great knowing where they are.
    h) all but one of the credit cards are in there. We rarely use credit so no use having them stolen/lost if a purse or wallet goes astray.

    I think the boxes are useful, but even more importantly they’re fun. It’s cool to tell people “of course, that stuff’s in our box at the bank” and to watch the tellers speculating why you need such a LARGE and HEAVY box….

    Reply
  • LifeInsuranceCanada.com April 13, 2013, 8:18 AM

    BANG! You get hit by a car and are now dead. All your important papers, including your life insurance policy, are in the safety deposit box. Can anyone get into the safety deposit box now? Frequently the answer is ‘no’. So have a contingency plan in place for that.

    A home safe can be comparable. Cheaper over the long term even without the tax deduction, fireproof, and many of them are heavy enough that they’re effectively as secure locally as the bank. Safes like this (remove the g word):
    http://www.canadiantire.ca/AST/browse/5/SportsRec/1/Hunting/FirearmSecurityProtection/PRD~0755600P/Stack-On+24-gun+Fire+Resistant%2C+Convertible+Safe.jsp?locale=en
    can be had for like $500. And at 420 lbs, nobody’s going to walk away with it. Good as any bank, and way better access.

    Reply
  • Rob April 13, 2013, 8:11 AM

    Enjoy writing off safety deposit box rental fees as carrying charges while you can because according to the latest Federal 2013 budget:
    “For taxation years beginning after March 20, 2013, the budget proposes that a deduction of an amount paid or payable in respect of the use of a safety deposit box of a financial institution will no longer be allowed.”

    Reply

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