Sunday, October 2, 2022
After decades of offering safe deposit boxes as a way for customers to store valuables and important documents, the service is now viewed as an expensive relic of the past. JPMorgan Chase & Co. is officially phasing them out, and customers will no longer be able to rent out new boxes.
President of Safe Deposit Specialists, David McGuinn, says that safe deposit boxes the most expensive square footage you can put in a new branch. Banks have longed viewed the program as a loss given the extensive costs that are associated with building a vault, installing security, and training employees on how to properly work within that system.
While the cost is high, this has been traditionally overlooked due to the high net worth of individuals who typically use the boxes. These changes are anticipated to upset many longtime users, and has the potential to pose significant issues for the estate planning community, as safe deposit boxes are often used to store original estate documents.
For more information see Jennifer Surane “JPMorgan Chase is Phasing Out Safe Deposit Boxes”, Bloomberg, September 30, 2022.
Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.