Custodial fees are costs that you'll pay to a bank or brokerage for taking care of and managing your investments. They're sometimes also called safekeeping fees. At some point in your investing journey, you'll likely encounter these fees.

What does safekeeping mean in finance?

Safekeeping, also known as safe keep, is the storage of assets or other items of value in a protected area. Many individuals choose to place financial assets in safekeeping. ... Financial institutions are custodians and are therefore legally responsible for any items in safekeeping.

Is safekeeping the same as custody?

As nouns the difference between custody and safekeeping

is that custody is the legal right to take care of something or somebody, especially children while safekeeping is the act of keeping something safe; protection from harm, damage, loss, or theft.