Bank safe deposit boxes and financial planning |
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A reader notes:
While I was saving for my top surgery, I ended up homeless and had to go on food stamps. Prior to that, I had the money in a higher interest money market. I had to pull it all out, or the government would have required that I spend it before they gave me any services. The solution was opening a safe deposit box. No, it doesn’t grant any interest, but it does keep cash out of a checking account where it can be easily spent. It also keeps it off any official radars, since what is in a box is no one’s business but yours. No impulse spending can happen either, since you have to go all the way down to the bank and get someone to let you into it if you want the cash. It was a lifesaver, and I’m about to open one up again for another major expense.
This is an excellent option, especially for people who get paid in large amounts of cash. It’s generally safer than hiding it in your home, especially if you have roommates or a lot of visitors. The money doesn’t get interest and you have to set aside the time and money on a regular basis, but for some people, it’s a good way to keep cash from just slipping through their fingers on impulse purchases.
Starting costs range from $15 to $25 a year, but check with your local bank. You may ge a deal if you have an account with them already.