Why Do Banks Monitor Dormancy?
Banks monitor dormancy to protect your funds and comply with state laws. If an account remains inactive for too long, the funds may be considered unclaimed property and must be turned over to the state.
When Does Dormancy Take Effect?
Dormancy occurs after the following periods of inactivity:
How Can I Prevent My Account From Becoming Dormant?
Preventing dormancy is easy and helps you avoid fees and extra steps later. Here’s what you can do: Tip: Even if you don’t use your account often, logging in once or twice a year can keep it active.
What is a Dormant Account and Why Does It Matter?
A dormant account is an account that has had no customer-initiated activity for a certain period of time. Dormancy matters because financial institutions are required by law to safeguard inactive accounts and eventually turn over unclaimed funds to the state if the owner cannot be reached. This process is called escheatment.
How Do I Get My Funds Back Once They Are Escheated?
Once an account has been escheated, you must contact your state’s unclaimed property division for instructions.
What Is Escheatment and Why Does It Happen?
Escheatment is a legal process that occurs when unclaimed property, such as dormant bank accounts, is transferred to the state of the account holder’s residence because the owner cannot be contacted after a certain period of inactivity. The state then becomes the custodian of the funds and holds them until the rightful owner claims them […]