Can You Keep Cash in a Safe Deposit?

A safe deposit box is a secured, personalized vault within a banking institution designed to enable people to store a variety of valuable possessions. This type of secured storage has very few regulations are far as laws are concerned in regard to contents. There are some caveats that can come along with the storage of cash within a safe deposit box, however.

While federal law does not specifically prohibit the storage of cash with in a safe deposit box, some banks might. There are two main reasons why banking institutions might frown upon this practice:

  • The loss of deposits – When customers choose to store cash in a safe deposit box instead of within a bank account, banks lose out on deposits. This can actually cost customers money, as well, since they will miss out on the potential earnings interest rates provide.
  • Concerns about tax evasion – Some banking institutions might discourage cash deposits not out of fear of seeing deductions from their own bottom lines, but to avoid problems with the Internal Revenue Service. There are regulations that prohibit the concealment of cash to avoid paying proper taxes on it.

While it is not technically against the law to store cash in a safe deposit box, this is a move consumers should weigh carefully. Keeping money in the box instead of the bank can actually cost them a loss in potential earnings.

blog comments powered by Disqus