The Advantages of Private Vaults Over Banks
8 June 2023
With considerable wealth comes the need to secure and preserve it in the best way possible. For this, a safe deposit box vault in Singapore remains the best solution for safekeeping your valuables. There are two main avenues to get access to this secure storage solution, namely through a private vault or a banking institution.
Of course, choosing the best option for your needs requires some thorough research. To help you reach the best decision, the following contents will outline the advantages you get by opting to protect your riches in private secure storage.
1. Banks Are Exiting the Safe Deposit Box Business
Major banks are gradually eliminating safe deposit boxes, which were once highly regarded as the most secure method of storing tangible assets.
It was reported by Bloomberg in October 2022 that JPMorgan Chase had terminated its safe deposit box service, disallowing clients to rent new boxes from November 2022 onwards. The Wall Street bank joins the likes of HSBC, Barclays, and Capital One as internationally renowned banks phasing out their safe deposit services - a trend that is attributed to the increased use of online banking and digital storage options.
Of course, not everything can be stored digitally, which is why private vaults are still relevant in today’s time. Private vaults like The Reserve offer an extensive range of safe deposit box sizes and choices that range from small to very large and everything in between. Naturally, this also extends to pricing options that provide various secure storage solutions suited for different budgets and sized objects.
2. Greater Flexibility of Hard Asset Storage
Given that bank safe deposit boxes are often located in branches that are prime locations to offer convenience to customers, the space allocated for storage is often limited due to costs. Therefore, bank safe deposit boxes are often unable to accommodate odd-sized items like art, high-end timepieces and other collectables at reasonable storage rates.
It is simply easier to diversify your hard assets by opting for private vaults. From precious metals and jewelry pieces to fine art and other valuable collectables, these alternative assets are more likely to be economically stored in a reliable and protected environment that private vaults provide.
Moreover, these vaults often provide customizable storage options, allowing for efficient organization and management of diversified portfolios.
3. Option to Insure Your Valuables
Getting insurance for the things that matter to you is a no-brainer, and this applies to the valuables you keep in a safe deposit box. If you choose to store your wealth in a bank, be aware that their safe deposit boxes are generally uninsured because any contents placed within are not declared to the bank.
On the other hand, while it is yet to become a universal standard, more and more private vault providers are allowing clients to declare their assets to be insured. By engaging with a private vault that offers such a feature, you can enjoy the peace of mind of having all-encompassing and comprehensive protection for your stored wealth.
4. Diversification of Asset Locations
The 2008 Great Financial Crisis exposed the banking system's vulnerability, and recent bank failures in the U.S. and the collapse of Credit Suisse in 2023 have served as a stark reminder to investors about the sudden and unforeseen risks associated with such failures.
While banks are useful in holding cash deposits, storing valuables and other hard assets in a private vault outside the banking system can be a wise strategy to diversify risks in wealth management.
Private vaults are often focused on providing storage, making them a safer option than banks.
Upon comparing these key deciding factors, private vaults come out on top in nearly every scenario. All these benefits add up to a storage solution that meets the needs of most people looking for a highly secure and convenient way of storing their assets for safekeeping. If you are convinced that private vaults are the way to go, look no further than The Reserve.
The Reserve serves as a safe haven for generational wealth and is the most secure place to store your valuables, be it precious metals in our gold and silver vault in Singapore, luxury timepieces, art, and more. With state-of-the-art security complemented by premier alternative asset services, including authentication, digitization, and collateralization, we provide everything you need to safeguard your riches.
For more details, don’t hesitate to send us an inquiry today.