Non-Bank Safe Deposit Boxes in Switzerland – Who Are They For?

Family heirlooms, expensive jewelry, and valuable collections are just a few of the items which you may not feel comfortable storing at home where the danger of fire or theft is ever-present. Although you may be able to insure certain valuables (at least in part) with household insurance or specialized valuables insurance, there is no way to recover the sentimental value of stolen or damaged goods. In the case of one-of-a-kind items, a loss can be devastating, regardless of insurance benefits.

Because of this, many people store their most valuable items in safe deposit boxes. Many Swiss banks cater to this need by hosting secure storage units at some locations. Aside from individuals storing personal possessions, these secure storage facilities are popular among people who prefer to hold their wealth in precious metals or banknotes rather than as bank account balances.

Valuables held in safe deposit boxes are not affected by bank insolvencies, while only a very limited portion of assets held in banks are insured against bank bankruptcy. Keeping your money in a safe deposit box also lets you avoid the limitations on withdrawals imposed by almost all banks.

Additionally, as explained in the moneyland.ch guide to bank safe deposit boxes, storing your wealth in this way can also safeguard it during periods of negative interest rates. In that case, the deciding factor is whether or not the cost of renting a safe is lower than the cost of negative interest charged by banks.

What are the advantages of non-bank safe deposit boxes?

Access to bank-operated safe deposit boxes is limited. In order to hold a safe deposit box at a Swiss bank, you are usually required to have a bank account at that bank. Non-bank safe deposit boxes provide a more accessible alternative for people who cannot or prefer not to store their valuables at a bank. A number of private organizations rent out safe deposit boxes in Switzerland.

Another possible advantage is that most non-bank safe deposit box service providers let you insure the contents of your safe. That generally is not the case with bank safe deposit boxes. Many private Swiss secure storage companies give you some insurance for the contents of your safe deposit box at no additional cost. You generally have the option of buying more insurance, for which you pay a separate insurance premium. The downside is that this insurance is often expensive.

What are the disadvantages of non-bank safe deposit boxes?

The main disadvantage of non-bank safe deposit boxes is the price. Many service providers charge much higher rents for their safe deposit boxes than Swiss banks do.

How much do Swiss non-bank safe deposit boxes cost?

The rents of private safe deposit boxes are typically higher than those charged for bank safe deposit boxes. However, because you are not required to maintain a bank account, you avoid paying possible bank account fees. This is especially beneficial in the case of non-residents who pay high non-resident fees at most Swiss banks, if they can open or maintain an account at all.

Prices vary broadly, so comparing the price in addition to the security and location of a storage unit is important. Price is the deciding factor when storing insured cash, gold bullion or other replaceable items. If you are storing irreplaceable items which no amount of insurance compensation can bring back, location and security play a much more important role. Location is also important if you expect to deposit and collect items from your safe deposit box frequently.

There are many more non-bank safe deposit box providers across Switzerland. It is worth comparing offers based on your needs and location.

Some secure storage providers require you to put down a security deposit for safe deposit box rentals. You get this deposit back when the rental agreement ends.  

In addition to rent, there are other costs that can apply, depending on which services you use. These include:

• Monthly or annual fees for leaving your safe deposit box keys with the secure storage provider for safekeeping.
• Monthly or annual fees for having the secure storage provider hold mail related to your safe deposit box until you can collect it. 
• Fees for secure transportation, if required.
• Penalty charges for the loss of safe deposit box keys, or damage to the safe.
• Some service providers charge you a fee for accessing your safe deposit box. When this is the case, you normally get a certain amount of free visits that are included in the standard fee, with the access fee only applying to additional visits.
• Service providers that offer 24/7 access to your safe deposit box may charge an additional fee for this service.
• Some service providers charge a one-time fee (100 francs, for example) when the rental agreement is created. 
• Service providers that give you the option of giving additional people access to the safe deposit box may charge a fee for this service.

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