Why the Online Safe Deposit Box Will Pique Interest

Imagine identity thieves paying for gas using credit cards in your name. Picture a flood or fire destroying your home. Consider a loved one suffering an accident. Unforeseen events require access to records, such as credit card, insurance and will and trust documents. And the speed with which you retrieve this information is crucial as it may prevent further hardship. But where and how do you obtain instant access? The answer may be an online safe-deposit box.

The online safe-deposit box is a timely topic; given recent shocks to the economy and catastrophic weather events have many wondering, "What's next?" One sure thing analysts bet on is that consumers will seek additional security in uncertain financial times. Rest assured banks, such as Wells Fargo, aim to provide that security.

In a recent press release, Wells Fargo announced its plans to offer the vSafe, a virtual-safe-deposit box, to retail banking customers later this year. The online safe deposit box can store copies of financial statements, loan and tax documents, wills, passports, and birth, marriage and death certificates.

The cost of an online safe-deposit box ranges from $4.95 a month for a 1GB safe to $14.95 a month for a 6GB safe, as reported in "A Virtual Lock Box," in the July 2008 issue of Kiplinger's. Additional layers of security are available at extra cost.

Wells Fargo's virtual safe-deposit box is not the first form of online storage. Websites such as, Carbonite.com and Symatec.com have offered online data storage for years. Likewise Keepyousafe.com offers consumers safe-deposit boxes for personal documents. But this is the first time that online storage has been provided by a financial institution.

That fact is expected to resonate with consumers and the competition alike. Bob Meara, a financial analyst, predicts the online safe-deposit boxes will be popular with other banks too, as reported in Kiplinger's magazine.

But not everyone is sold on the virtual safe-deposit box. "A secure online storage space seems like a good idea, but I'm not fully sure I'd personally trust [online storage]" Scott Nichols, a PC World reviewer, said in response to the Wells Fargo press release at PC World.com. But Nichols added, if Wells Fargo proves secure, then the virtual safe-deposit box could be a great option for backing up of important documents.

Given the popularity on paying bills online, the safe-deposit box is sure to pique the interest of many.

Print sources:

A virtual lock box: Store everything from wills to family photos in an online safe. Kiplinger's Personal Finance, [62(7)], 18.