What Is A Custody Account And How Beneficial It Is?

Safe Keeping Receipt (SKR) is generally used to protect the deposit. Knowing more details about it will help in gaining more benefits from it. SKR is one of the banking instruments which is issued by the financial institutions that can be used to store the assets or other valuable things in the bank. The issuer of this SKR will take the responsibility of taking care of the assets or other valuable things secured with the custody account. Opening an account after knowing all the features and details of the SKR is always recommended so that you can be more confident.

Know the benefits of opening a custody account:

Do you want to save your assets without prior payment immediately? Then you must order for a Safe Keeping Receipt in the reliable bank. With the issuing of the SKR the bank will take the complete responsibility of taking care of the assets or deposits without any advance payment. You can pay the fee after six months of issuing the SKR. You can simply open the custody account and get this SKR easily. Usually, when you run a business you will need the bank endorsement and other financial instruments to run your business successfully.

The various forms of monetizable SKR are collectible art, bonds, precious gems, valuable documents, antiques, property, gold, fur, above-ground assets, and any other important things that can be stored in it. The SKR cannot be owned by the client always, thus when the issuer of the SKR requests to return it, then you have to return the document. While returning the SKR you can collect the things which you have stored in the bank. Despite the other bank endorsement, the SKR will be owned by many people since everyone wishes to keep their assets safe in the bank.

It is important to understand that the issuer of the SKR does not own the things or documents which are stored in the bank. So, the asset or the valuable items must be returned to the client when it is requested. This instrument is more or less like a collateral-based banking instrument which provides an alternative way for financing. This SKR is like any other bank endorsement like LC, SBLC and so on. The fee required for this storage and other terms and conditions depends upon the financial institution which you choose to store the assets and other valuable things.

The best way of obtaining the SKR is after understanding the features provided by the bank and other conditions. This process is made easy so that all the people especially businessmen can use it. Opening the custody account is not difficult. You must submit the required documents and then open the account with the minimum balance in it. However, you must pay the fees to the financial institution without fail to ensure the security of the assets stored there. You must not transfer the SKR obtained from the bank without knowing how to deal with it.