24 Feb Can you store cash in a safe deposit box?
Whether you have withdrawn money to give as a wedding gift that you do not want to keep at home, or you collect unusual notes and coins from currencies across the world, there are many reasons why you may wish to store cash in a safe deposit box.
In response to this demand, it is not unusual for secure storage firms to allow you to do so, although this isn’t universal. Some banks, for example, restrict the storage of cash in a safe deposit box.
At St James’ Safe Deposit, we provide safe deposit boxes in Manchester and Leeds, and are happy for people to deposit cash in our purpose-built vaults. But what are some of the advantages and disadvantages of doing so?
Why store cash in a safe deposit box?
There are few more secure places for the storage of cash than a safe deposit box. Our purpose-built underground vaults and sophisticated security arrangements – alongside our city centre location – act both as a strong deterrent and reliable obstruction against thieves.
Some of the scenarios in which it might be advisable to use a safe deposit for cash include:
- If you have received a large cash gift (potentially in a foreign currency) and need a safe place to keep it while you decide how it’s going to be used or invested.
- You have withdrawn a lump sum to be shared amongst your grandchildren, so you can see them enjoy it in life rather than it being left in a will.
- You are going to make a cash purchase of a large item but don’t want the money kept insecurely at home.
- You want to keep some liquid cash in times of economic uncertainty, in case of emergencies.
- You have a valuable coin collection.
The disadvantage of keeping cash in this way is that it won’t accrue interest or other financial bonuses, but for short-term storage or an emergency backup, it can make sense to store cash securely.
What legalities should you bear in mind when storing cash in a safe deposit box?
Safe deposit boxes should never be used to store cash that doesn’t have a paper trail. If you are ever asked by HMRC or the police to prove the provenance of the cash, a lack of documentation could cause serious legal trouble for you. Depending on how the cash came to you, ensure you keep:
- All sales and purchase receipts from any business you own.
- Evidence that all UK tax liability had been met, including VAT, Corporation, and Personal Tax
- A record of how much cash was gifted to you and by whom.
When these technicalities are taken care of, keeping your cash with us at St James’ Safe Deposit is both simple and secure. If you would like to find out more, please contact our friendly team in Manchester or Leeds, or book a visit.