Skip to main content

Banks Aren’t Only Option for Locker Facility

With rising break-ins in their neighbourhood, Brendan and Alexia are looking at locking away their valuables in a safe deposit locker. Earlier, their options were limited to only banks, both public and private sector, but now there are private players that offer this specialised service.

Some of these companies include Kothari Safe Vaults, Sakthi Safe Vaults, India Safety Vaults and A smita Safe Deposit Lockers. To target the customer, there are innovative techniques as well. Sakthi Safe Vaults, for instance, allows operation of the locker even on a Sunday.

Unlike banks, these companies are not regulated by the Reserve Bank of India (RBI). So, they can stay open longer and for more number of days.

What limits private players is the reach. Banks do have an edge when it comes to the number of branches that offer the locker facility. Bank branches that offer this facility are located in many more cities compared to the private companies.

At present, Kothari Safe Deposit Lockers has branches only in Chennai, while Sakthi Safe Vaults has its presence only in the four states in south India. India Safety Vaults has two branches each in Mumbai and Pune. But many a times, banks have had to turn away customers because they did not have enough lockers in their branches.

But the number of lockers private players have in each branch is much higher. Kothari Safe Vaults in its five branches has around 2,000-4,000 lockers per branch. In addition, the variety of lockers offered by the private players is much more than the banks.

As far as charges go, these are reasonable for both players. The annual rental is around `1,000-5,550. However, they will also ask you to maintain a security deposit. And, if you do not pay your annual rent, it gets adjusted with the safe deposit. Once that security deposit is crossed and you still do not pay your rent, the bank can break the locker, record the contents of the locker and may be, file a police complaint.

Banks could also ask the customer to maintain a fixed deposit with them, so that they can use the interest income towards annual payment. R U Trivedi, chief manager at Kothari Safe Vaults, says his company takes three years rental as deposit money, unlike in a bank where one has to pay a monthly rental as deposit. "In a bank locker, the interest earned is adjusted with the monthly rental. We charge between 600 and `4,000 a year, depending on the size of the locker." As for the security of the private company lockers versus the banks, some claim that they have even bettered the safety standards set by RBI'S currency 'A' chest specifications.

Both banks and private players do insure vaults, though the contents in it are not insured. This is because the contents in the vaults are only known to the owner of the locker. You will have to take an insurance policy yourself to safeguard the contents in the locker.

Though private players have fewer branches, their costs are competitive

Bank Lockers Company Lockers

Accessibility Only during office hours; Sundays closed Open all day and holidays. Number of lockers Limited number of lockers per bank; can be added 2,000-4,000 per branch Cost Annual rental (depends on the size of the locker Security deposit, between three months and from branch to branch), security deposit and three years of advance. No or fixed deposit. annual rental

Popular posts from this blog

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...

Birla Sun Life Mutual Fund Launches Birla Sun Life NIFTY ETF

Birla Sun Life has launched a new fund namely, Birla Sun Life Nifty ETF, an open ended exchange traded fund. The new fund will be open for subscription from 4th July to 18th July 2011, at an offer price of Rs 10 per unit. The investment objective of the scheme is to generate returns that closely correspond to the total returns of securities as represented by S&P CNX Nifty, subject to tracking errors. No exit load will be charged under the scheme. The performance of the scheme will be benchmarked against S&P CNX Nifty and will be managed by Satyabrata Mohanty.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Birla Sunlife Mutual Funds: http://prajnacapital.blogspot.com/2011/...

Mutual Fund Reivew: Birla Sun Life Asset Allocation Conservative

Birla Sun Life Asset Allocation Conservative has numbers on its side to prove its credibility… Don't be surprised to find this Fund of Funds ( FoF ) in our recommendations. It has earned its place. And despite the difference in the structure of the product, there is no arguing with the numbers.   Of the total 6 years of its existence, the fund has been among the top 10 funds in its category in four of them. Last year it put up an average show and the only year it underperformed its peers was in 2008.   One aspect to look at when investing in an FoF is the expense ratio. The expense ratio of an FoF is capped at a lower limit of 0.75 per cent (2.50% for an actively managed fund). However, the FoF not only has its own expense (though lower) but even the expense ratio of the fund it is investing into. Fortunately, the fund manager takes that into account. "Expense is one of the important criteria used for fund selection and is the main reason for our investment in BSL Ind...

Short-Term Investment Options in Mutual Funds

Mutual funds offer liquid funds and ultra short term funds in the debt category, which are suitable for short investment periods. Ultra short-term funds were earlier known as liquid plus funds. Liquid funds invest in money market instruments with a maturity of 91 days or less. However, there are no such restrictions for ultra short-term funds. Who should invest in these? These are open-ended schemes. Investors with a short investment horizon or with surplus cash and low risk appetite should look at these. These could include corporate as well as retail investors. Those interested in staying invested for less than 15 days can opt for liquid funds. Retail investors who want to remain invested for two-four months, can look at ultra short-term funds. The short duration for both liquid and ultra short-term funds shields them from any interest rate volatility.   What kind of returns do they offer? In terms of an investment period less than 15 days, these funds are comparable to a ba...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now