What are custodial services? Explanation of safety deposit box rental, custodial deposit and other services offered by banks.
CUSTODY SERVICES: SAFE BOXES AND CUSTODY STORAGE.
Safekeeping services consist of the rental of safety deposit boxes and safe deposits.
Safety deposit box rental is highly sought after by bank customers who often need to keep important documents, credit titles, valuables and so on in a safe place.
The problem is that to keep the safety deposit boxes the bank must have an underground armored vault which not all branches have.The rental of safety deposit boxes lasts for six months or one year and is automatically renewed unless the customer communicates otherwise at least 15 days before the expiry date.
To rent safety deposit boxes, you must pay a six-monthly or annual fee depending on the length of the contract.The protection of the customer’s privacy is guaranteed both by the absolute secrecy of the contents of the box, which are not known even to the bank, and by the particular procedure that must be followed every time the customer wishes to open the box to insert or withdraw material.
The other storage service as mentioned is the custodial storage .
There are open custody deposits , in which the bank is aware of the deposited goods which appear on a specific list and assumes all responsibilities relating to their conservation, but there are also closed custody deposits in which the material to be conserved is contained in an armoured box which the bank must limit itself to conserving, ensuring its external integrity.
Obviously, in this case too, the bank requires a fee which is generally paid every six months.
