While visiting various blogs, I came across the Canadian Personal Finance Blog, which many of us know the author a Big Cajun Man. He wrote an article that brought to light a topic I was unaware of. The topic is in fact that TD is increasing the cost of their Safety Deposit Box.
Like with any other bank, TD simply sent out a letter stating that they are increasing the fees, similarly to when they increased the interest rate on their line of credit.
As it stands, the cost of owning a TD Safety Deposit Box was $42/ year. The increased price will definitely have you looking at another bank.
TD increased the cost of owning a safety deposit box, and several costs related to it.
How much was the price increased and what else was increased?
The price of having a TD safety deposit box increased 42%, sitting at $60/ year. You know, after hearing about a 42% increase in price, you would think TD would end it there but they didn’t.
For any TD safety deposit box holders, if you were to lose your key, then the cost of replacing it was $4.95, however that has also increased (by a lot as well). If you were to lose your key, you will now have to pay $50 plus HST.
The last increase that TD does is the cost of having your safety deposit box drilled open. The previous fee was in fact $104, however it has increased to $200. I do not see that many people having this done, but still, the increase in price is quite high.
Why did these changes occur?
It looks like a lot of banks are increasing various things. We have heard rumours of increases for RBC’s personal chequing accounts.
I was speaking with a reader recently and was told of how his business account increased recently. He took action, and instead of taking these increases, he went and switched banks.
We contacted TD about the recent change, and were able to speak with Barbara Timmins, Corporate Communications, TD Canada Trust.
We know that safety deposit boxes are a highly valued service in our branches, as they are in great demand. We haven’t changed fees in several years on safety deposit boxes and this pricing reflects the realities of the servicing costs to offer and maintain these products.
From what was said, I understand that TD Canada Trust has made this increase to allow them to continue to provide the product to clients. Personally, I would prefer to see a small increase every year instead of a large increase at once, but that is not what happened here.
Barbara explained to us that the fees reflect the costs associated with engaging an external locksmith. This to me explains why the cost to replace a key increased and the cost of drilling.
Realistically, for those who own a safety deposit box safeguard it as to not misplace it.As I mentioned above, the fees like getting your safety deposit box drilled it likely not to even happen.
What do you think of the increase cost to owning a safety deposit box?