One of South Africa’s large banks warns clients about ending storage service

Absa has informed clients that it decided to discontinue its safe custody storage service, known as safe deposit boxes, on 30 September 2024.

The bank warned its clients to schedule an appointment at the branch where their items are stored before 30 September 2024 to avoid having their items sold.

A safe deposit box is a metal box that is stored in a secure area in a bank, like a vault and is rented by a client.

Safe deposit boxes provide strong protection against theft, fire, and natural disasters, giving clients peace of mind that their valued possessions are safe.

Many people use them to store valuable documents, jewellery, family heirlooms, cash, and other items they value.

The boxes are accessible only to the client or individuals they authorize, ensuring privacy and confidentiality.

Safe deposit boxes date back to ancient civilizations in Egypt, Greece, and Rome, where people used temples and other secure buildings to store their treasures.

Modern safe deposit boxes emerged in the nineteenth century when banking institutions started to become popular.

The first safe deposit companies were established in the United States, offering clients a secure place to store their valuables outside of their homes.

Banks soon adopted this service, and it became a standard offering, providing clients with enhanced security and peace of mind.

However, many banks consider them an outdated service and have discontinued the service in recent years.

Absa is one of these banks. It informed clients that it decided to discontinue its safe custody storage service.

“This change aligns with our ongoing review of service offerings to ensure they align with our business strategy and are sustainable over time,” Absa said.

“To facilitate this transition, we kindly request that you schedule an appointment at your nearest Absa branch to retrieve any items currently held in safe custody by 30 September 2024.”

Absa warned that uncollected items may be sold to cover any outstanding fees where applicable.

“We will fairly evaluate and, if necessary, sell the goods at reasonable value or the best available price,” Absa said.

“The proceeds from any sale will be used to settle outstanding safe custody fees, with any remaining funds transferred to you, the customer, where traceable.”

It added that Absa will manage any proceeds where a customer is untraceable, following the applicable regulations regarding unclaimed funds and dormant accounts. 

“Customers can claim these proceeds at any time without incurring interest,” Absa said.

“We encourage you to contact us as soon as possible to arrange the retrieval of your safe custody items.”

FNB ditched safety deposit boxes

Absa is not the first bank to stop the service. In 2017, following a spate of high-profile robberies, FNB announced it decided to discontinue safe custody storage.

“With immediate effect, FNB will not accept any new safe custody applications from existing or new customers,” the bank said at the time.

“The decision follows the bank’s regular review of service offerings to align with its business strategy, as well as the assessment of the product’s sustainability.”

The bank was thrust into the spotlight following the high-profile safety deposit box robberies, which left customers fuming due to a lack of communication from FNB.

Two days before Christmas in 2016, a FNB branch in Randburg was targeted and hit by criminals, who escaped with over 200 safety deposit boxes.

The group was then again hit by a second bank heist in as many months, with the SAPS reporting that R1.7 million had been stolen from the bank’s branch in Parktown.

FNB noted that “the bank continues to remind customers that it is necessary to take out suitable insurance cover for all valuables held in safe custody.”

In 2018, 60 victims of the 2016 FNB safety deposit box heists sued the bank for R121 million in damages.

The victims argued there was reason to suspect that FNB employees colluded with criminals to execute the heists.

The bank was criticised by victims, who accused the bank of dragging its feet, shifting blame, and offering settlements at values well below what was lost.

They accused the bank of gross negligence in the matter, saying that FNB’s employees colluded with the criminals in executing the crimes.

Specifically, evidence pointed to FNB employees not locking the vault as required, as well as managing to block alarms.