Safe Deposit Box Processing: Overview

The purpose of the CU*BASE Safe Deposit Box Processing software is to enable the credit union to track the rental of safe deposit boxes to members. In addition, a flexible fee system allows the credit union to set up a fee structure which takes into account not only on the size and type of box, but also the status of the member and any special promotional offerings. Fees are charged to member accounts using an automated fee processing program.

· For example, perhaps you would like to offer special fees for board members and employees who rent safe deposit boxes, or offer a no-fee safe deposit box with a special membership program.

Information can also be recorded which helps the credit union employee control member access to the box.

There are 4 basic steps required to set up and maintain safe deposit box information:

1. Configure a box type, description, and fee schedule for all box types.

This step, which is generally done only once, involves determining an annual fee structure for each classification of box. For example, you may have a set of fees for 3” x 5” boxes, with another fee for 5” x 8” boxes. Configuration is done using the Safe Deposit Box Configuration feature. Click here for details.

2. Create records for each individual numbered box.

This one-time step involves recording the availability status of each individual box, along with member and fee information for each rented box. CU*Answers can assist with this step by setting up the entire group of boxes, ready for rental information to be entered, or by converting your credit union's existing tracking system. Click here for details, or contact a client service representative for assistance.

3. As boxes are rented or released, update individual box information.

Boxes are maintained on an on-going basis, to record the rental status of each box. In addition, boxes can be marked as “suspended” (unavailable) if keys are lost or the box is damaged. Click here for details.

4. On a monthly basis, post annual fees to member accounts.

Each rented box is assigned a due date (month and year). When fees are posted for that month and year, fees are withdrawn from member accounts. Up to two different member accounts can be attached to each box, so that if funds are unavailable from the first account, the system will try the second account. Posting can be done multiple times during the month until all fees have been satisfied. Once the fee has been successfully posted to the member's account, the due date increments to the next year automatically. Click here for details.

· As described below, you may use the same month for all boxes, or stagger the months depending on when the box was rented.

Methods for Charging Fees

There two different ways that your credit union can approach charging fees for safe deposit boxes. The system is set up to charge fees on an annual basis only. However, you can choose whether all boxes will be charged during the same month each year (e.g., January), or whether each box will be set up individually (e.g., if a member rents a box in March, his fee is charged every March from then on).

With both methods, the fee for the first year, whether a full year or pro-rated, is generally collected up front when the box is rented.

Method 1 - Single Fee Month (Pro-rated first year)

With this method, your credit union can choose a single month during which all annual fees are posted to member accounts for safe deposit box rentals. This method requires less time on the part of staff, as the posting procedure is only done during one month of the year.

If using this method, the first year rental is pro-rated and paid up front by the member. For example, say your normal fee month is January each year. In October, a member rents a $24.00 box. You collect a fee of $6.00—the pro-rated rental for three months. The box is then set up to charge the entire annual fee starting in January.

· If your credit union wishes to use this method, each box must be set up with the same fee month and year. In addition, an internal policy must be established for collecting the first year pro-rated fees when the box is initially rented.

Method 2 - Staggered Fee Months

With this method, the fee month/year is set up separately for each individual box. If a member rents a box during the month of March, the annual fee will be charged to her account each March, from that point on.

This method is helpful if you do not wish to pro-rate the fee for the first year, but simply begin the annual fee on the month when the box was rented. With this method, annual fees are posted each month for any boxes which are due during that month.

· If your credit union wishes to use this method, simply enter the fee month and year when each box is rented. In addition, an internal policy must be established for collecting the full fee for the first year when the box is initially rented.

If your credit union wants to start using safe deposit box processing for the first time, a client service representative can assist by setting up the entire group of boxes, ready for rental information to be entered, or by converting your credit union's existing tracking system.