I love it when things work out well... :)
I've now got a sum total of 4 spiral bits, which I keep inside their protective plastic sleeves with the caps on. Mine are carbide (since I couldn't get the HSS ones locally in my hour of need), which explains the protective storage. Carbide is DEADLY brittle, and a moment's inattention can scarf a nasty chip off a perfectly good bit... and they're the DEVIL to sharpen!
I'd not store steel in that way. That sorta' container would be a good place for rust to develop. Carbide is indifferent to the conditions that'd promote rust in steel, though, so I'm not worried about red stuff developing.
ALL my steel stuff is kept out where air can circulate freely around it. All but the steel stuff in my metalworking "zone", that is - and THAT is usually oiled by its very nature, so I'm not worried about rust there.
-- Tim --