What Happens If A Bank Account Is Inactive?

How long can bank account be inactive?

If you don’t use your account for a long period of time the bank or building society may declare it dormant, but the length of time before this happens will vary between institutions.

It could be as little as 12 months for a current account, three years for a savings account, or in some cases up to 15 years..

Can we deposit money in inactive account?

You can simply make a deposit or withdrawal transaction to reactivate your inactive bank account. To reactivate your dormant account, submit a written request for reactivation at your home branch. Remember that your bank cannot charge you for reactivating the account.

What happens if you transfer money to an inactive account?

What will happen when money os transferred by someone to such account? Then? You can reactivate your inactive bank account by simply making a deposit or withdrawal transaction. To reactivate your dormant account, visit your home branch and provide a written request for reactivation of your account.

What is the difference between inactive and dormant account?

INACTIVE AND DORMANT ACCOUNT If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant.

How do I activate an inactive bank account?

Reactivating your accounts is very simple. You can simply make a deposit or withdrawal transaction to reactivate your inactive bank account. To reactivate your dormant account, submit a written request for reactivation at your home branch. Remember that your bank cannot charge you for reactivating the account.

Why do banks close inactive accounts?

In the US, accounts are closed for inactivity because state law on unclaimed / abandoned property forces financial institutions to escheat funds to the state after a state-defined period of dormancy. There are very stiff penalties for financial institutions that fail to comply.

What happens if you don’t use your bank account?

If the account is no longer useful, best is to close the account. … If you still don’t take any action, the bank will send a letter declaring the account dormant. Charges: An inoperative account may not affect your credit history. But, it would attract a penalty, depending on the bank’s policy.

What does it mean when an account is inactive?

Inactive account. An inactive account is a bank account with infrequent or no use. In the case of credit cards, if no activity is recorded for the account, some card issuers will close the account and revoke charging privileges. An inactive account is also called a dormant account.

Why do banks charge customers who have inactive accounts?

It’s the inactivity fee. Many banks and credit unions will charge your savings or checking account a monthly inactivity fee after a certain period of time in which there are no customer-initiated deposits or withdrawals. … The longer the time after the fee, the less chance you’ll be able to get a reimbursement.