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Bank Accounts - Inactive Accounts


When is an account considered inactive or dormant?

Generally, an account is considered dormant when no activity—deposits or withdrawals—has occurred for a period of 5 to 7 years. The length of time necessary to declare an account dormant is defined by State statute.

Once an account is declared dormant, the bank may be required to transfer the funds to the State treasurer or unclaimed property office. Most States require that the bank send notice of the impending transfer of funds to the account holder. The notice is sent to the last address of record on the bank's books.

If you wish to find out if funds from your account were sent to the State treasurer, contact your applicable State treasurer/unclaimed property office. You can start your search by visiting www.unclaimed.org.

Another bank recently took over my bank. The new bank cannot locate any record of my deposit account from 1980. What should I do?

It may be that your account was considered dormant and had to be turned over to the State. Most States have enacted escheat laws which require banks to transfer funds held in dormant accounts to the State treasurer or unclaimed property office.

The length of time necessary to declare an account dormant is defined by State statute. Generally it is when the account has had no activity for 5 to 7 years.

If you want to find out if funds from your account were sent to the State treasurer, contact the applicable State treasurer/unclaimed property office. You can start your search by visiting www.unclaimed.org.

Why would a bank send me a notice of escheatment?

Under escheatment laws, when a bank account has been dormant for a certain period of time, the money reverts to the State treasurer.

Generally, an account is considered dormant when it has had no activity—deposits or withdrawals—for 5 to 7 years. The length of time necessary to declare an account dormant is defined by State statute.

Most States require that the bank send notice of the impending transfer of funds to the account holder. The notice is sent to the last address of record on the bank's books.







Copyright 2007 by Mark McCracken , All Rights Reserved