How to open a locker with the Bank?
Having a safe deposit locker with a bank is considered to be one of the safest places to keep your prized possessions such as jewels, share certificates, important documents and other valuables. Most of the banks today offer locker facility. However, it is important to consider various aspects if you are going to opt for the locker facility with the bank. Read on to know more about how to open a locker with any bank.
Advantages of having a Bank Locker
While having a bank locker serves the biggest advantage of saving you from the threat of your valuables been stolen from your premises, there are some other advantages too that you can’t ignore.
- For most of the banks you can avail a nomination facility wherein you can name a person nominee of all the valuables kept in the locker in the event of your death.
- Sturdy and state-of-the art safety vaults and burglar alarm systems make your valuables all the safer than kept in your home.
- A combination key & in many case codes kept by the bank that along with your own key can only open the locker assures you of the safety of your valuables.
- Lockers are available in different sizes as per your requirement.
How to open a locker with a bank?
In order to obtain a bank locker in a bank, you must furnish the following requirements:
- You must possess a savings account with the bank you wish to open the locker in.
- As a prerequisite for some banks, you may also be asked to pay a cautionary deposit amount for a fixed period of time.
- A signature verification process has to be carried out before opening a bank locker along with the submission of regular documents
- An indemnity agreement has to be signed on a stamp paper of Rs100/110
- The locker can be operated individually or jointly, but the allotted key is only one
- A minimum security deposit as FDR for the amount equivalent to 3 years of rent and charges for breaking open the locker in any case of eventuality will have to be deposited.
- A copy of the agreement called the Memorandum of Letting will be provided to the hirer of the locker by the bank
- The hirer can issue a standing instruction of the rent to be paid on the due date.
- The locker should be operated at least once in six months. If the locker is not operated for over a year, the bank has the right to cancel the allotment
- Any loss of keys should be reported to the bank without any delay
Locker charges vary from bank to bank
Bank locker charges vary from bank to bank along with the size of the locker applied for. For a few banks the location also changes the rent. For example, if a bank is situated in the prime commercial area of the city, the rent may be higher. The annual rent charged by private sector banks is much higher than the rent of the public sector and nationalized banks. For example, the annual rent charges of the smallest locker of Citibank start from approx Rs2500 and goes up to Rs40, 000 for its largest locker, whereas, the Central Bank of India charges somewhere between Rs 830 to Rs 9600 approx depending on the size of the locker applied for.
Banks expect rent in advance
Some banks ask you to pay the rent of 2 or 3 consecutive years in advance where the rental date is calculated from the date you open the locker till the same date next year. Some banks also follow the date of the end of the financial year and charge you on pro-rata basis.
The rent of the locker largely depends on the size of the locker and you should think carefully before you opt for one. Evaluate the usage of the bank locker; whether it is to keep only jewelry or documents and a few valuables, a small locker should be sufficient. Whereas, if your usage is higher, don’t settle for a small locker to save the rent, instead go for a large one and maintain your prized possessions in safe custody.
