For those who want to keep their valuable jewellery, documents or property papers safe in a bank locker, just knowing the locker rent amount is not enough. Banks also impose some additional conditions and charges related to your locker, which need to be known in advance, otherwise you may have to suffer financial loss later.
Annual rent and contract terms
The annual rent for a bank locker facility depends on the size of the locker and the location of the branch. This fee has to be deposited in advance at the beginning of every financial year. It is mandatory for the bank to give the customers a signed copy of the locker agreement, which outlines their rights and responsibilities.
Many times customers only think about the annual rent, but banks also charge some additional charges. These include:
– One-time registration charge, which is collected at the time of locker allotment to cover the cost of documentation and administration.
– Every customer is allowed to open the locker a limited number of times. If this limit is exceeded, additional visit charges have to be paid.
If the annual rent is not paid on time, the bank charges late fee (overdue penalty).
– In case of loss of key or non-payment of fare, separate charges are applicable for breaking of locker and replacement of new key. According to HDFC Bank, this work is done in the presence of the authorized vendor, in the presence of the bank official and the customer.
Term Deposit Terms
While giving lockers, many banks ask for term deposit (FD) from the customers keeping in mind the rent amount for three years and the cost of breaking the locker. However, SBI’s policy is that this FD will not be asked from those whose account is running satisfactorily or who are customers of the bank for a long time.
Some standards have been set for this. The account should be KYC compliant, active for the last three years, and the average balance should be equal to two years’ rent. Employees and VIP customers are also exempted from this condition.
Bank’s responsibility in case of loss
If an incident like theft, robbery, fire or building collapse occurs in a branch due to the fault of the bank or negligence of the employees, the customer will get compensation for the loss. In such cases, the bank is responsible for paying compensation up to 100 times the annual rent of the locker.
Therefore, it is very important to read every fee, condition and security rule carefully before signing the locker agreement in any bank so that there is no financial shock in the future.