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Why Are You Not Supposed to Keep Money in a Private Safe?

  • Writer: Brandhype India
    Brandhype India
  • Jun 19
  • 3 min read

Safe deposit boxes have long been trusted for storing valuables like jewellery, documents, and heirlooms. But one thing you’ll often hear—even from your provider—is this: don’t keep cash in a safe deposit box. This may sound odd at first. After all, what could be safer than locking your money away in a secure vault?


Why Are You Not Supposed to Keep Money in a Private Safe?

Let’s break down the reasons why storing cash in a safe deposit box isn’t recommended—and what you should be using one for instead.


It’s Not Illegal, But It’s Risky


To clarify, keeping money in a safe deposit box isn’t technically illegal in India. However, financial institutions and private providers alike strongly discourage it—and in many cases, explicitly prohibit it in their terms and conditions.


At MySafe India, we offer a world-class safe deposit box service in India trusts for security, privacy, and automation. But like many top providers, we advise against storing physical currency due to the limitations and liabilities involved.


1. Cash Isn’t Covered by Insurance


Perhaps the most important reason: cash stored in a safe deposit box is typically not insured. At MySafe India, our lockers are insured through Lloyd’s of London for approved valuables—but this insurance doesn’t extend to currency notes.


If something were to happen—fire, theft, flood—you wouldn’t be able to claim insurance for any cash stored inside. That’s a significant financial risk, especially when there are safer, insured ways to hold your money.


2. Currency Can Deteriorate Over Time


You may not think about it, but currency notes can degrade over time, especially in enclosed environments. Humidity, temperature changes, or even the paper's natural ageing process can leave your notes faded, torn, or mouldy—rendering them unusable.


While a modern safe deposit box facility like ours offers climate-controlled environments, cash is still best stored in bank accounts where it remains safe, accessible, and unaffected by physical conditions.


3. No Interest, No Growth


Another practical reason not to keep money in a safe deposit box is simple economics. Cash kept in a box earns no interest. It sits idle.


In contrast, money placed in a savings or fixed deposit account not only remains secure but also grows over time. This is especially important for long-term financial planning. If you’re storing large amounts of cash for the future, a locker is not the place.


4. Legal and Tax Scrutiny


Keeping large sums of undeclared cash in safe deposit box services in India could also raise red flags in the eyes of tax authorities. If found, you may be asked to prove the legal source of that cash.


In recent years, there’s been increased scrutiny over unaccounted wealth, particularly in physical forms. While lockers offer privacy, they don’t exempt you from following financial laws and regulations.


5. It’s Not the Intended Use of the Box


Ultimately, a safe deposit box is designed for secure, long-term storage of items that are valuable but infrequently accessed. This includes:

  • Jewellery

  • Property deeds

  • Wills and contracts

  • Investment certificates

  • Digital storage devices

  • Heirlooms and sentimental items

Cash, on the other hand, is meant for liquidity. Keeping it locked away in a box defeats its purpose and adds unnecessary risk.


What Should You Store In A Private Vault Instead?


If you’re considering a safe deposit box service in India, here’s a better idea of what you should be using it for:

  • Gold and precious metals

  • Antique coins and collectibles

  • Important family or legal documents

  • Emergency backups of digital data (on encrypted drives)

  • Rare or sentimental items that are irreplaceable

These items benefit from both the security and limited-access nature of a locker.


Final Thought


Storing cash in a locker might feel like a safe option, but in practice, it exposes you to more risk than reward. A safe deposit box is ideal for valuables that need to be protected but aren’t part of your day-to-day financial activity.


At MySafe India, our safe deposit box service for India customers is built around modern security, automation, and customer education. We're here to help you make smart choices about what to store and how to store it—so your assets stay safe and your mind stays at ease.


Want to see how it works? Book a demo at your nearest MySafe India facility today.


 
 
 

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