Thinking of getting a bank locker? Here’s what you should know first

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A locker feels like the safest place in the world for your valuables, but there are rules, costs and limits most people don’t fully understand.

Bank lockers offer secure storage but do not insure valuables against all risks
Compensation capped at 100x annual rent for losses from bank negligence
Nomination and joint operation details are key for smooth access and inheritance.

For many families, a bank locker is almost a ritual. Jewellery from weddings, property papers, family heirlooms, all neatly sealed away behind a thick steel door. It gives comfort. It feels official. But before you sign up for one, it helps to know how lockers actually work and what responsibilities come with them.

A locker is not the same as insurance

A bank locker is a storage facility, not an insurance policy. Yes, your bank is responsible for maintaining a “reasonable amount” of security to secure your valuables, but you cannot sue them if something untoward happens and your valuables get stolen or ruined. The Reserve Bank of India has directed that in case of incidents like fire, burglary or building collapse due to bank negligence, you can get compensated up to 100 times of your annual locker rent.

So, if your locker rent is Rs 5,000 a year, that means you are eligible for a compensation of Rs 5 lakh. If the jewellery in your locker costs more than that, you should consider separate insurance.

You cannot store just anything

Lockers are meant for valuables and important documents, not for cash hoarding, illegal items or hazardous materials. Banks can break open a locker if rent remains unpaid for a long period or if there are legal directions to do so.

It’s also worth remembering that lockers are not anonymous. You sign an agreement, and access is recorded.

Nomination is critical

If something happens to you, your nominee can access the locker after completing the bank’s formalities. Without nomination, your family may face delays and paperwork at a difficult time.

Many people open lockers years ago and forget to update nomination after marriage, divorce or other life changes. Review this carefully.

Joint lockers need clarity

If you’re taking a locker jointly with a spouse or parent, check the operation mode. It could be either or survivor, jointly, or former or survivor. This determines who can access it independently and what happens if one holder passes away.

Don’t treat this as a formality. The wording matters in real situations.

There is a waiting list in many cities

In metro cities especially, lockers are limited. You may need to maintain a savings account with the bank and sometimes keep a fixed deposit as security. Some banks require a minimum balance or relationship value before offering a locker.

The annual rent varies depending on locker size and branch location.

Think about access and practicality

A locker is useful only if you can access it when needed. If the branch is far away or has limited hours, it can become inconvenient. Also, avoid visiting too frequently. Carrying high value items repeatedly increases risk.

Keep an updated list at home

Do not keep an inventory list inside the locker. Maintain a separate written or digital record at home of what you’ve stored, especially for insurance and estate planning purposes.

A bank locker can be a sensible way to safeguard family valuables. Just go in with your eyes open. It offers security, but not absolute protection, and a little planning upfront can save a lot of trouble later.

Courtsey To : Moneycontrol