Tag Archives: IRS

Chase Bank Prohibiting Cash From Its Safe Deposit Boxes?

Sounds like JPMorgan Chase Bank, or Chase Bank, here in the United States now prohibits cash from being stored in its safe deposit boxes. Joseph T. Salerno, academic vice president of the Mises Institute, wrote on the Mises Wire blog Monday:

In a letter to its customers dated April 1, 2015 pertaining to its “Updated Safe Deposit Box Lease Agreement,” one of the highlighted items reads: “You agree not to store any cash or coins other than those found to have a collectible value.” Whether or not this pertains to gold and silver coins with no numismatic value is not explained…

(Editor’s note: Bold added for emphasis)

Salerno pointed out this was in addition to Chase now prohibiting the use of cash for payments on credit cards, equity lines, auto loans, and mortgages.

Storing currency in safe deposit boxes is a subject I’ve addressed before on this blog. Regular readers of Offshore Safe Deposit Boxes may remember a series of posts I published starting March 11, 2014, entitled “Can Americans Keep Cash In An Offshore Safe Deposit Box?” I concluded in that three-part series:

I explored the legality of Americans storing cash in safe deposit boxes. Two “popular” claims made about this activity being unlawful included:

1. “Consumers should never conceal cash from the United States government and not pay income tax on it.”

2. “This is considered taking currency out of circulation which is against federal law.”

From my research, I couldn’t find any regulations/laws to back up either of these claims.

So can Americans keep cash in an offshore safe deposit box?

Providing there really is no federal law prohibiting the activity and the bank or private vault allows it, why couldn’t they?

(Editor’s note: Bold added for emphasis)

Clarifying “claim” number one, I blogged on March 13, 2014:

Short of contacting the Internal Revenue Service directly about this matter, I can’t find anything out in cyberspace that backs the claim currency stored in a safe deposit box is illegal under some IRS regulation stating “consumers should never conceal cash from the United States government and not pay income tax on it.”

Regarding that bit about paying income tax, obviously one should address tax liabilities when and where applicable.

But getting back to the matter at hand:

“So can Americans keep cash in an offshore safe deposit box?

Providing there really is no federal law prohibiting the activity and the bank or private vault allows it, why couldn’t they?”

This development at Chase Bank- the largest bank (by assets) in the United States, by the way- looks to be an example (albeit a domestic one) of a financial institution not permitting currency being stored in their safety deposit boxes though it may be perfectly legal.

Question is, will more banks- American and overseas- join the “Chase”?

By Christopher E. Hill
Offshore Safe Deposit Boxes (www.offshoresafedepositboxes.com)

Source:

Salerno, Joseph T. “Chase Joins the War on Cash.” Mises Wire. 20 Apr. 2015. (https://mises.org/blog/chase-joins-war-cash). 22 Apr. 2015.

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