Disadvantages of Safe Deposit Box
1. Limited Access: There is limited access to safe deposit boxes. It can be accessed only during specified working hours of the bank or financial institution. It may be inconvenient for some individuals, especially if the bank’s working hours are limited.
2. Rental Fees: Rental fees are charged by the owners for the safe deposit box, usually on an annual basis. The bank may terminate the rental agreement and remove the content of the box if the renter fails to pay the rental fees.
3. Limited Insurance Coverage: Safe deposit boxes are not insured against loss or damage by the bank. A separate insurance coverage for the items stored in the box is required to be obtained from another insurance provider to secure the assets in case of contingencies.
4. Size Limitations: There is a limit to the size of the box and hence, not all the important accessories can be kept inside the box. Moreover, there are restrictions on what can be stored in these boxes.