Absa warns clients about closing service at the end of the month

Absa is closing its safe deposit box service on 30 September 2024 and urged clients to retrieve their goods at the branch where their items are stored by the end of the month.

The bank warned that it may sell uncollected items from these safe deposit boxes to cover 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.”

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

Safe deposit boxes protect 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 authorise, ensuring privacy and confidentiality.

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

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, becoming a standard offering, providing clients with enhanced security and peace of mind.

However, many banks consider them outdated and have discontinued the service in recent years.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

Other South African banks, including Standard Bank and FNB, have also exited their safety deposit box businesses.

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 in 2017.

“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.”

In March 2022, IBV International Vaults, which specialises in private vault facilities, acquired Standard Bank’s safe custody business.

IBV took over Standard Bank’s book of more than 20,000 clients and the management of its seven private safety deposit vault facilities across South Africa.