Inactive Bank Accounts
Depending on your Banks procedures, most accounts will become dormant between 1 to 5 years. The reason for this is there is no activity in the account. The bank will attempt to notify the account Owner at their last known address on file. If the Bank does not receive a response the account will become escheated.
There are several ways to prevent this from happening & from losing control of your account. Below are a few easy suggestions to prevent your account from going dormant.
A. You should always keep your contact information current. The bank should have your current address, phone number, & email on file. Your bank will always try to contact you before they close the account. Do not assume they will be able to find you if you move or change your phone number.
B. You can have your payroll wages, social security checks, disability checks, unemployment checks, tax returns, etc, automatically deposited into your account.
C. You can enroll in automatic bill pay & have your account debited. Automatic bill pay is a money transfer scheduled on a predetermined date to pay a recurring bill. Automatic bill payments are routine payments made from a banking, brokerage or mutual fund account to vendors. Automatic payments can be made from a checking account or savings account.
D. Be sure to check your monthly bank statements. You should receive these statements from your bank every month.
These are some simple steps to prevent your account from becoming dormant. It can take motnhs to recover your account, once it has become escheated. In many cases the process is overwhelming & the account owner is unable to recover their assets.
All it takes is one simple transaction per year to keep your account active & to prevent it from closing.