Most bank branches offer the facility of safe deposit lockers to keep valuables such as jewellery or important documents securely. An ideal place to hire a locker would be the nearest bank branch where one has an account. Size of the locker can be chosen according to need and the rent.
Usually there is a high demand for lockers and one needs to apply to the bank for the same. If a locker is available then the bank and the customer enter into a locker rental agreement which spells out the terms and conditions, liabilities and responsibilities of the bank and the customer.
While entering into a locker agreement, a locker rental is collected depending upon the bank, branch and size or location of the locker. The customer should keep sufficient balance in the bank account which can take care of annual rental of the locker through a direct debit instruction. Typically banks ask for collateral in the form of deposits that cover a rent of up to three years.
Holding and nomination
A locker can be held by more than one person. On the death of one of the holders, the nominee and other holders get access to the contents of the locker on submission of necessary documents. It is mandatory to register nomination for the locker. If there is no nominee, the legal heir typically gets access to the locker.
If one wishes to close the locker, he/she can apply to surrender it. The customer needs to empty the locker and return the key to the bank. The agreement stands terminated and the locker rental collected at the beginning of the year is refunded to the customer.
Points to note
- Each locker has two keys out of which one is with the customer. If the customer loses the key, a penalty is charged for getting the locker opened and replacing the key.
- One can take a jewellery insurance plan which covers items kept in safe deposit lockers of specified banks.