How Much FD is Required to Get a Locker in the Bank? What Things Can You Keep? Know These Rules

Bank lockers have long been seen as a safe and reliable place to store valuable items like jewelry, important documents, and family heirlooms. However, before you can rent one, most banks in India require you to maintain a Fixed Deposit (FD) as collateral. This often raises questions: How much FD is required to get a locker in the bank? What things are allowed or not allowed to be kept inside? What are the official rules?

Bank Locker FD Requirement & Rules

Key Points	Details
FD Requirement for Locker	Banks usually require an FD covering 3 years’ locker rent + charges to break open locker (if needed). Example: ₹6,000 FD for ₹2,000/year rent.
RBI Guidelines	Banks cannot demand arbitrary FD amounts. FD should be strictly linked to rent + incidental charges.
Locker Rent (Varies by Bank & Size)	Small locker: ₹1,000–₹3,000/year, Medium locker: ₹3,000–₹8,000/year, Large locker: ₹8,000–₹12,000/year (approximate range)
Permitted Items in Locker	Jewelry, legal documents, collectibles, family heirlooms
Prohibited Items	Cash, firearms, hazardous materials, perishable goods, liquids

Understanding how much FD is required to get a locker in the bank and knowing what things you can keep is crucial before opting for one. RBI’s customer-friendly regulations ensure banks cannot misuse locker allotment policies or demand arbitrary deposits. Always review the locker rent, FD requirements, and storage rules before signing up.

Why Do Banks Require an FD for Locker Allocation?

The Fixed Deposit (FD) requirement is mainly for security and operational efficiency. Banks need assurance that locker rent will be paid regularly, and if a customer defaults or abandons the locker, banks must have the means to recover costs incurred to open the locker forcibly.

Key reasons why FD is required:

1. Locker Rent Prepayment:
   Banks typically calculate the locker rent for three years and require an FD of that value to cover it in advance.
2. Incidental Charges:
   In cases where a locker needs to be broken open due to non-payment or abandonment, the FD also covers breaking charges and maintenance fees.
3. Risk Mitigation:
   It minimizes the risk for banks in case the locker holder passes away without settling dues or without a nominee.

Example Breakdown:

• Annual Locker Rent = ₹2,000
• FD Requirement = ₹2,000 x 3 years = ₹6,000 + ₹1,000 (estimated breaking charges)
  Total FD = ₹7,000

Important:
Per the Reserve Bank of India (RBI) guidelines, banks cannot demand random FD amounts beyond this specific calculation. Always refer to your bank’s policy and RBI’s official notification for confirmation.

see also: New TDS Rules from April 1 Key Changes in Tax Deduction

What Items Can You Keep in a Bank Locker?

Bank lockers offer safe, insured storage for valuables. But not everything is allowed.

Permitted Items:

Allowed Items	Examples
Jewelry & Precious Metals	Gold, silver, diamonds, family heirlooms
Important Documents	Property deeds, wills, car titles, academic records
Collectibles	Stamp collections, rare coins, artifacts
Other Valuables	Bonds, share certificates, insurance papers

Prohibited Items:

Not Allowed Items	Reason
Cash/Currency	Against RBI locker usage guidelines
Firearms, Explosives, Weapons	Illegal and hazardous
Perishable Goods & Liquids	Risk of damage, spoilage
Hazardous or Illegal Materials	Safety & legal concerns

How to Apply for a Bank Locker: Step-by-Step Guide

Getting a locker is straightforward but involves specific paperwork and deposits. Here’s how:

Step 1: Choose Your Bank & Locker Size

• Visit your preferred bank.
• Select locker size: Small, Medium, Large based on your needs.

Step 2: Open a Bank Account & FD

• Most banks require you to be an account holder.
• Deposit the Fixed Deposit (FD) covering rent + incidental charges.

Step 3: Submit Documents

Required KYC documents:

• Identity proof: Aadhaar, PAN card, Passport
• Address proof: Utility bill, bank statement, rental agreement

Step 4: Sign Locker Agreement

• Read the locker agreement thoroughly.
• It outlines usage rules, fees, liabilities, and terms.

Step 5: Nomination Facility

• Nominate a trusted family member to ease access in case of unforeseen events.

Step 6: Collect Locker Key & Start Using

• Bank provides a key (you retain).
• Always log locker usage in the bank’s register.

What Happens If You Don’t Use or Pay for the Locker?

Banks allow some grace period if rent is unpaid. However:

• Non-payment for more than 3 years: Bank may break open the locker after sending notices.
• The FD is used to cover dues and breaking charges.
• Any remaining contents are stored securely, but the customer loses locker rights.

RBI mandates clear notice protocols to ensure fairness.

see also: Punjab & Sind Bank FD Interest Rates Revised Earn Up to 7.50% on FDs

Bank Locker FD Requirement & Rules FAQs

1. How much minimum FD is required to open a bank locker?

Typically, banks require an FD equivalent to 3 years’ locker rent + incidental charges, usually ranging between ₹5,000 to ₹20,000 depending on locker size and bank policies.

2. Can banks force customers to open large FDs beyond locker fees?

No. As per RBI guidelines, banks cannot coerce customers into opening FDs beyond necessary rent and charges. Always refer to RBI’s official locker circular.

3. Can I store cash in my bank locker?

No. RBI rules explicitly prohibit storing cash. Lockers are meant for valuables, documents, and jewelry—not liquid money.

4. What happens if I lose my locker key?

Inform the bank immediately. The bank will arrange to break open the locker in your presence, and charges will apply.

5. Is the locker insured?

Contents of the locker are not automatically insured. Customers need to avail separate insurance policies for valuables stored inside.