WHY keep your valuables at home when you can keep them in the safety of a bank locker?

Bank lockers are often equipped with burglar alarms and their vaults are made of fire-resistant material to safeguard their contents.

Also, the locker is almost totally tamper-proof since it can be opened only with two keys, one of which is with the bank and the other with the customer. Some banks also have a provision for latches, on which customers can put additional locks if they like.

Making A Choice
There are two factors you should check before making a choice. One is the annual rentals, the other is the amount of security deposit required, if any.

Bank rentals differ depending on locker sizes. The bigger the dimensions, higher the annual rentals. So, first of all, decide on what size you want to go for. It might be wise to choose one that accommodates possible future requirements.

Banks like Bank of Baroda, Bank of India and HSBC offer as many as 10 different locker types to suit a customer’s varied needs. For instance, an ‘A’ class locker from the Bank of India (115 X 150 X 517 mm in height, width and depth respectively) is available for an annual rent of Rs 500.

The rates are higher for foreign banks like HSBC, which charge Rs 1,750 for a similar dimension. In addition, HSBC also asks for a one-time administrative fee of Rs 1,000 at the time of opening the locker, which is non-refundable. Private banks like HDFC Bank offer four sizes — small, medium, large and extra large. The small-sized locker has an annual rent of Rs 1,250 in Mumbai and Delhi.

Most banks give lockers only to their banking customers, which means you have to either open a savings or a fixed deposit account. This, for a person who doesn’t have a savings account in that bank, would mean additional cost. Instead of a savings account, go for a fixed deposit, since here, you at least earn interest on the money.

If you choose a savings bank account, fulfilling the minimum balance requirements would mean losing interest. Public sector banks score on these parameters as their rentals are lower than the private and foreign banks. Also, their minimum balance requirements aren’t a drag on your resources.

Go through the terms and conditions before signing on the dotted line. Some clauses might catch you on the wrong foot. For instance, one public sector bank has a clause that disallows using duplicate keys.

Then, there are clauses that allow banks to break your locker and do a public auction of your items, if the rent is not paid for six years.

And finally, consider the location of your bank. The closer the better so that the items can be transported safely or accessed quickly as and when required.

Dos And Don’ts
• Always go for joint names with a nominee specified.
• Prefer lockers with additional latches.
• Avoid operating lockers with duplicate keys.
• Operate lockers only after the bank official leaves the premises.
• Choose a locker size that also accommodates your future requirements.
• Check annual locker rentals and deposit requirements.