Saving Money Bank Account or Safety Deposit Box?
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The fact of the matter is that there are good ways of saving money and there are less good ways of saving money. Saving money, regardless of the form that it takes, can be a very good thing. Having said that, there are specific benefits to saving money someplace like a bank account over saving money by placing it into a safety deposit box.
First of all, if you have money to save, there is no reason that you shouldn’t put that money to work for you making more money. When you put your money into an interest-bearing bank account, your money will increase on its own. On the other hand, a safety deposit box will be a drain on the money you have saved, because you have to pay for the box. For example, if you have $1,000 to save, consider this. If your put that $1,000 into an account that makes just 3% per year, in two years you will have more than $1,300. While this is not a lot of money, and while there are bank accounts that can pay you much higher rates of interest, you can consider this the minimum that you might make. In contrast, if you put your $1,000 into a safety deposit box that costs you $10 per month, in just 9 years or so you will have to close the safety deposit box, because you will have spent more than $1,000 in fees for the safety deposit box!
Safety deposit boxes are not meant for saving money. Safety deposit boxes are meant to store important papers or valuable items. tax returns, titles to cars, deeds to houses are all the sorts of documents that you might want to keep in a safety deposit box. Another excellent idea is to take all of your important electronic information, such as electronic banking or tax records, plus a file listing your account numbers and passwords, and put the information onto a removable drive and put that device into a safety deposit box. Be careful, though, that as technology changes you still have something that can read the removable drive.
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