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Does Keeping The Gold In Bank Lockers Is It Safe?

Don't know is it safe to keep gold in Bank Lockers? Read this article that will help you to understand how does keeping the Gold bank locker works?

30 May,2024 12:10 IST 4056
How Does Keeping The Gold Loan In Bank Lockers Work?

Most Indian households own or invest in gold. However, owing to its high value, they avoid keeping it at home due to a higher risk of theft. There are no extensive safety measures at home to safe-keep the physical gold, making storage of gold in bank lockers a wise decision.

A bank locker is a facility for people to store their valuables safely at a nominal cost. They prefer bank lockers as they protect the gold in high-safety vaults with a hardened steel doors. Every customer has a single key to use to access their lockers whenever they want.

Is It Safe To Keep Gold In Bank Lockers?

Bank lockers are one of the safest facilities to keep gold safe as financial institutions take numerous high-security measures to protect assets against theft and other external problems. Banks adopt innovative infrastructure to create such vaults deep inside the building for maximum security.

The bank locker area is highly secure, and no individual, staff member or customer, is permitted to enter without prior application. However, the gold owners do not earn any gold interest in bank lockers or get any other monetary benefit. They have to pay a fee to the banks for availing of the bank locker facility.

How Does Keeping The Gold Loan In Bank Lockers Work?

The gold ornaments kept in the bank locker have monetary value, which increases with the rise in the gold prices in the domestic market. However, the gold lies dormant in the bank lockers. One of the best ways to use the kept gold is through an ideal gold loan.
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You can either take a gold loan in a bank or choose an ideal NBFC to leverage the gold to raise immediate capital. A gold loan is a loan product through which you can raise quick funds by pledging the gold kept in bank lockers as collateral.

You can take a gold loan online for better benefits, such as application approval in under few minutes and disbursal after approval. A gold loan online has no end-use restrictions where you can use the loan amount for personal or business purposes without being answerable to the lender.

Step-by-Step Process for Keeping Gold in Bank Lockers

Step 1: Apply for a Locker:

  • Visit a bank branch, preferably where you have an existing account.
  • Request for a safe deposit locker application form.
  • Fill out the application with your details.
  • Consider adding a joint holder for access in your absence.
  • Submit the completed application form to the bank.

Step 2: Choose Locker Tenure and Access:

  • Decide how long you want to rent the locker (minimum one year).
  • Understand that you need to access the locker at least once a year to avoid it being sealed by the bank.
  • Be aware that you have a limited number of free visits per year (usually twelve). Additional access will incur charges.

Step 3: Wait for Allocation and Agreement:

  • The bank will allocate a safe deposit box to you upon availability.
  • Review and sign the locker agreement outlining terms and conditions.
  • You and any joint holders will need to submit required documents.
  • Pay the locker rent before you can start using it.

Avail Of An Ideal Gold Loan With IIFL Finance

IIFL Finance is India’s leading financial services provider offering customised and comprehensive gold loans. With IIFL Finance’s gold loans, you get industry-best benefits through our process designed to deliver instant funds based on the value of your gold within short time of application.

IIFL Finance Gold Loans come with the lowest gold loan interest rates, making it the most affordable loan scheme available. With a transparent fee structure, there are no hidden costs you have to incur after applying for the loan with IIFL Finance.


Q.1: How much do banks charge for a bank locker facility?
Ans: Bank locker charges are nominal and can range between Rs 500 - 3,000 per annum based on the locker size and the branch's location.

Q.2: Do I earn interest by storing gold in bank lockers?
Ans: No. You do not earn any interest on the gold you keep in bank lockers.

Q.3: How can I get a gold loan from IIFL Finance?
Ans: Getting a gold loan from IIFL Finance is super easy! Click on the ‘Apply Now’ button mentioned above and fill in all the required details to get a loan approved in few minutes.

Q4. Is a bank locker safe to keep gold?
Ans. Absolutely! The locker of a bank is a highly secure area, and no individual, staff member or customer can enter without prior permission or fulfilling the bank’s prerequisites. Hence, you can rest assured that keeping your valuable gold assets in a bank locker is completely safe and secure. 

Q5. How much gold can I keep in locker?
Ans. The Reserve Bank of India has not put any regulations with regards to the amount of gold that you keep in a bank locker. Keep in mind that it depends on the policies and terms and conditions of the particular bank in which you have a bank locker. 

Q6. Which bank locker is the cheapest?
Ans. Every bank has different set of charges depending on the branch's location and locker size. However, HDFC Bank charges Rs. 550 as locker charges for extra small lockers in rural areas. It is advisable to check the charges with the bank that you decide to entrust your valuable gold with. 

Q7. What happens if gold in bank locker is robbed?
Ans. In the unlikely event that bank locker is robbed, then the bank is liable to pay you an amount equal to one hundred times the existing yearly rent of the bank locker.

Q8. How much does it cost to keep gold in a bank locker?
Ans. Locker rentals are typically annual and in some cases, monthly too. Banks require you to pay the rent upfront in full before the new year (fiscal year) begins. The specific cost will depend on the bank's pricing structure.

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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