Some people transact in their bank accounts every week, whether it's taking a withdrawal from a checking account or putting money into a savings account. But it may be that you have an account you don't really use all that much.
Maybe you opened a savings account years ago, as a young adult, to deposit your holiday gift checks. If you've since gotten a job and steady paycheck, you may have opened a checking and savings account at a different bank, leaving your original savings account to largely sit untouched.
Nothing will happen if you don't make any transactions in a bank account for a few weeks. And usually, nothing will come of it if you ignore your bank account for a few months. But if you don't touch your bank account for years, there's a good chance it will be closed -- whether you want that to happen or not.
When there's nothing doing in your bank account
Let's say your only banking activity in the course of a given year is to transfer $5 into your savings account every month. That alone should be enough to keep your account active, which means the bank housing that account should not take any steps to close it out. But if you go years without doing anything in your bank account, then you should expect it to be closed at some point.
And to be clear, even if you have a savings account that's earning interest, those interest credits may not count as activity. Rather, you might need to make deposits or take withdrawals for your account to be considered active.
If your account is inactive for too long, your bank might opt to close your account. Usually, they'll send a letter to your address on record letting you know this.
If you're no longer at that address, though, you may not get that correspondence. And if your bank can't reach you, it can't confirm a way to give you the money you have in your account. In that scenario, you risk having your bank turn your funds over to your state as unclaimed property.
What to do if you think your old bank account was closed
It might dawn on you that you have a savings account with a few hundred dollars in it that you haven't touched in years. If that's the case, call the bank and see what the status of your account is. Your bank should be able to tell you whether the account is still open or not. If it's still open, they should be able to find a way to give you access by verifying your personal information, like your Social Security number.
Otherwise, if your bank account has been closed, your bank probably won't just hand over the money that was left in it upon its closure. You can, however, use a site like MissingMoney to try to reclaim your funds.
It's estimated that 1 in 7 consumers have unclaimed property. So it certainly pays to go after money from a bank account you ignored or forgot about.
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FAQs
Nothing will happen if you don't make any transactions in a bank account for a few weeks. And usually, nothing will come of it if you ignore your bank account for a few months. But if you don't touch your bank account for years, there's a good chance it will be closed -- whether you want that to happen or not.
What happens if you don't use a bank account for years? ›
If you ignore your savings bank account and let it become dormant, you'll face limitations. You won't be able to write checks, renew your ATM/debit card, change your address on file, or perform any transactions through ATM, internet banking , or phone banking.
What happens when you don't touch your bank account? ›
The bank may be trying to alert you that your account is inactive. If the account remains inactive, it may be classified as abandoned, and your funds may be turned over to the state. This practice may also be referred to as escheatment.
What savings account you can't touch for 3 years? ›
Fixed rate bonds are savings accounts that lock your money in at a fixed rate of interest for a specified amount of time, usually between six months and five years (more on those below). The term you choose will depend on your personal savings goals.
How long can a bank account be inactive before it is closed? ›
Inactive Accounts
Generally, an account is considered abandoned or unclaimed when there is no customer-initiated activity or contact for a period of three to five years. The specific period is based on the escheatment laws of each state.
How long does it take for a bank account to be deactivated? ›
How long does it take for a bank account to become inactive or dormant? The timeframe varies depending on the bank's policies, but typically an account becomes inactive after 12 to 24 months of no customer-initiated transactions. Dormancy usually sets in after a longer period, often exceeding two to five years.
What bank account can you not touch for 6 months? ›
With a certificate of deposit (CD) your money is stuck for a set time of your choosing — usually anywhere from one month to five years — while it earns a fixed interest rate. It's more restricting than a traditional savings account because you can't access your money until the term is finished.
How many years until a bank account is closed? ›
And when you leave a bank account unused for more than 24 months, it is considered a dormant account.
Can a bank take your money for inactivity? ›
Financial institutions are required by state laws to transfer property (e.g. money) held by inactive accounts, typically to your state's treasury department, if the account has been inactive for a certain period of time.
What bank accounts can't be touched? ›
One big difference between a CD and a traditional savings account is that you cannot touch the money in a CD during the term.
CDs, high-yield savings accounts, and money market funds are the best places to keep your cash when it comes to interest rates. Treasury bills currently offer attractive yields at the lowest risk.
Can they close your savings account? ›
Generally, banks can close your account without your permission, and they don't need to notify you to do it.
Is there a penalty for inactive bank account? ›
Will banks levy any charges. If an account is deemed inoperative, the banks are not allowed to impose penalties for failing to maintain the required minimum amounts. Activating inactive accounts will not incur any fees.
Can I withdraw money from an inactive account? ›
A bank account's holder is unable to conduct transactions once it is rendered inactive. However, dormant accounts are free of statute limitations. This means the beneficiary may withdraw funds at any time. You will need to activate your account to make a transaction.
How long does it take for an unused bank account to close? ›
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.
Do banks close accounts for inactivity? ›
Yes. Generally, banks may close accounts, for any reason and without notice. Some reasons could include inactivity or low usage. Review your deposit account agreement for policies specific to your bank and your account.
How long before a bank considers an account inactive? ›
In California, Connecticut, and Illinois, for example, most bank accounts go dormant after three years. In Delaware, Georgia, and Wisconsin, five years must pass.
What happens if a bank account is inactive for 3 years? ›
A dormant bank account is one that has no activity for over 2 years. Banks do this to mitigate fraud, comply with regulations, and reduce costs. You can reactivate your account by making a transaction or contacting your bank. Banks have regulations in place to activate dormant accounts.
What happens if bank account is not used for 10 years? ›
According to the RBI regulations, if a bank account remains inoperative for a period of 10 years, the money can be transferred to DEAF. An account is considered dormant or inoperative if there has been no transaction (apart from interest credited or maintenance fees charged) for a period of two years.
What happens if I don't use my bank account for a year? ›
Your Savings Account will become dormant if you don't use it for about 12 to 24 months. This does not mean that you will lose your money or that the bank will close your account. The account is still there, but you can't do some things anymore, like using online banking or withdrawing money from ATMs.
Account freezes aren't permanent, but they generally require certain actions on the part of the account holder before they can be lifted.
What happens if you never use a bank account? ›
Your bank account could become dormant if you make no transactions for a period of time. At that point, your bank might charge you an inactivity fee or close your account.
What happens if you leave a bank account unused? ›
If a current account or savings account is left inactive for a specified period of time it will be declared dormant by the bank, meaning it's inactive or no longer in use. But if there's any money left in it, you may still be able to track down the account and reclaim any funds.
What happens if you don t close a bank account you don t use? ›
Accounts that lie dormant for too long might even be closed by the bank automatically, and those that remain untouched for three to five years can be considered abandoned and turned over to your state's treasury.
What happens if account is not operated for 10 years? ›
As per extant instructions, the credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the “Depositor Education and Awareness” (DEA) Fund Scheme, 2014, are required ...
