Dormant savings account: A savings account may go inactive if it is not used for an extended period. Savings accounts that are inactive are not unusual. A bank account that has not seen any activity or transactions from the customer for a considerable amount of time is known as a dormant savings account.
A dormant account often lasts longer than the allotted time for an inactive account. A specific period of two years is required for an account to be deemed dormant. It’s possible that the owner passed away, moved without providing a forwarding address, or simply forgot about the account.
Banks typically have several policies in place regarding dormant accounts. They have the authority to impose fees on the account holder, limit account usage, or even move the money to another dormant account. Dormant accounts can occasionally pose a risk to financial organisations’ security.
What is dormant savings account?
Inactive and dormant accounts are not the same thing. They still qualify for funding and have a year to use it. Additionally, money from inactive accounts can be withdrawn, unlike dormant accounts. It also has less precise limitations than an inactive account.
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How is an inactive account reactivated?
• To find out how to reactivate a dormant account, get in touch with your bank. It is not permissible for banks to charge extra for reactivating a dormant account.
• You need to provide the bank with an application that explains why the account remained dormant. You must also present the required identification documents, most notably a legitimate government-issued identification form.
• To start the reactivation procedure, you need to finish the steps required by the bank. These steps include making a deposit, withdrawal, or transfer into or out of the account.
• After finishing every step, you need to confirm that the account has been successfully revived by calling your bank.
Even tiny transactions should be made frequently to keep your account active. Make sure you frequently use each and every bank account.
