Keeping gold in a bank locker - How does it work?

Nov 22, 2020

Keeping gold in a bank locker - How does it work?

India is a country that is famous for its gold and is one of the world’s largest consumers of the precious metal. It is a common occurrence for different households across the nation to own gold ornaments, many of which are also family heirlooms, passed on from one generation to the next. Moreover, with the rising rates of the metal, gold loans are becoming increasingly popular with borrowers across the country. Used for a wide range of purposes, these are also popular for the number of gold loan benefits in comparison to other loans.

With the purchase and ownership of gold jewellery being a popular practice, it is also important to take the right safety measures to prevent theft or loss. There are a number of ways this is done - from home lockers to keeping gold in bank lockers, people trust different security measures.

Ways to protect your gold

There are two main security measures that people take to keep their valuables safe, which includes their gold ornaments. These are namely with insurance and lockers. The lockers are either at home as a safe with a secure code, or at a trusted bank branch nearby. Many people also choose to insure their valuables and store them in lockers for safekeeping. The insurance guarantees that you have a coverage plan in case of an unforeseen event.

When it comes to keeping gold in bank lockers, many people are hesitant. The question of “is it safe to keep gold in bank lockers?” arises as people are uncomfortable with parting with their valuables to store them outside their immediate reach. But the fact of the matter is that this is the safest option, and is recommended by most insurance and financial companies.

Understanding bank lockers

Keeping gold in bank lockers is the safest means as banks take several measures to ensure this. Common features adapted by banks to do this are present in the security infrastructure of the branch itself. The lockers are usually situated in a strong-room, which is monitored closely by guards and CCTV cameras.

In addition to this high-level manual and electronic surveillance, entry and exit into these rooms are extremely restrictive. A single visit will show you for yourself that no other customer or employee is allowed to enter the strong-room when a single locker owner is present inside. People are also escorted to their locker box to prevent any confusion or mishaps, and to ensure privacy is maintained.

How to keep gold in bank lockers?

Filling out the application form

The procedure to keep gold in bank lockers is quite simple. You can hire a safe deposit locker with any bank branch which offers the facility, but it is recommended you open one with which you hold an account. It is also recommended to store gold and other valuables in a branch that is closest to you.

Once you have identified the branch, you will be required to fill out an application form to submit to the bank. It is recommended that you submit the application with a joint holder who can operate the locker in your absence. This is also to ensure that in the case of any unforeseen circumstances, the joint holder can access and claim the contents of the locker. If there is no nominee or another holder, the bank will refuse to release the valuables to anyone else.

Allocating the locker

The next step of the procedure to keep gold in bank lockers is the bank’s allocation of the safe deposit box. An agreement will have to be signed, which consists of all the terms and conditions of the duration you will be hiring the locker for.

All joint holders must be present to sign this document, and everyone must submit copies of their KYC documents. After this, you will be required to pay the rent for the locker in advance. This amount is usually for the duration of a single financial year. Banks may also request a fixed deposit be set up with coverage of a few years rent.

It is also important to keep in mind that there are different sizes available for storage options. Most people opt for small or medium sizes to store their most precious belongings. Some banks also charge higher rates depending on the location of the branch, the city, and the type of branch that it is.

Locker tenure

It is not enough to know how to keep gold in bank lockers. There are a few steps to maintain throughout the period that you have hired the safe deposit locker box for. You must operate and access the locker a minimum of one time every year. Banks will also maintain a record of this to ensure this is followed through.

In case you fail to do so, banks can reserve the right to seal the box. The number of free visits is also capped at twelve times a year. If you need to access it more than this, an additional charge will be levied. This also varies among different banking institutions.

Making the best use of a locker

Now that the answer to the question of “is it safe to keep gold in bank lockers” is clear, and the procedure on how to keep gold in bank lockers is better understood, it’s important to know how to make the most of this facility as well.

While many people do practice storing gold in bank lockers, this can lay as a dormant asset for months and years, only opened for weddings and special occasions. Instead, taking a gold loan can help raise funds for a variety of purposes. This includes personal and business requirements, like opening or funding a small business, making a large purchase, paying education fees, buying a new house, opening a salon, boutique, small shop, or anything more.

However, taking a gold loan might seem daunting with the high rates of interest and EMI that needs to be paid once the gold is pledged. This is where Rupeek Quick, a gold loan overdraft facility comes to the rescue. This scheme can also be a lot more useful as you need not store gold with any locker charges at all with this line of credit. The best part about Rupeek Quick and why it is better than storing your valuables in any locker is that you only need to pay interest for the amount used, only when you withdraw it. The cash gets transferred to your bank account with a single click, anywhere, anytime, irrespective of bank holidays. A gold loan overdraft simply makes it easier to manage your accounts and finances. You can check our gold loan overdraft facility - Rupeek Quick - to know more.

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