How to open a locker with a bank

Banks provide the facility of safe deposit lockers, which ensure the safety of valuables, such as jewellery, cash and important documents. The lockers may be provided at select branches and are available in various sizes—small, medium, large and extra large. These can be hired by adults, firms or associations individually or jointly. Bank branches usually maintain a waiting list register and allot the lockers on a first come, first served basis. While choosing a locker, keep in mind the location and ease of transaction. A neighbourhood branch in which one already has an account would be the best option.

1) Application

The person looking to hire a locker needs to fill up a simple application form and complete the KYC formalities with the bank.

2) Agreement

The hirer must sign a locker agreement, known as ‘memorandum of letting’, agreeing to abide by the bank’s terms and conditions.

3) Collateral

Most banks insist on some kind of collateral. Hence, they typically provide lockers only to their existing account holders, or to those who agree to open an account—savings or current—or make a fixed deposit that covers rentals for a period of three years.

4) Rent

A nominal rent is charged for hiring the locker. It depends on the size of the locker and branch location (both intra-city and inter-city). It is charged annually and is payable in advance.

Points to note:
1) Lockers cannot be allotted to minors in their names or jointly with others.

2) At the time of opening a locker, the hirer may give a standing instruction for rent payment from his bank account on the due date. Such direct debits save the hirer the trouble of writing out cheques.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)