How to Reactivate Your Dormant Account. Kindly submit completed documents at any of our branches. A duly filled dormant corporate account reactivation form or Reactivation letter signed by authorized account signatory.
You can sometimes reopen a closed bank account depending on the bank's policies and the reasons for the closure. Accounts that you closed or that were closed due to inactive status tend to be easier to reopen than those that were terminated due to problems like frequent overdrafts.
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.
Your bank can reactivate the account, but it's best to avoid awkward social moments and the hassle of reactivating an account altogether. Keeping an account active is easy enough if you deposit money into it regularly. This is called 'funding' your account.
Provide the necessary identification documents and complete any required forms. Typically, you'll need to make a transaction such as a deposit or withdrawal to reactivate the account. Ensure that you meet any minimum deposit requirements. Once completed, confirm with the bank that your account is reactivated.
There are no fees for reactivating dormant accounts, and banks cannot impose penalties for not maintaining minimum balances in such accounts.
The financial institution begins charging an inactivity fee.
Some banks charge zero, but others slap on fees of $5 to $15 per month. Look for these fees on your monthly bank statement, or on your bank's app.
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.
When an account becomes dormant, it remains open but inactive, and the account holder cannot use certain features like online banking or ATM withdrawals. Banks may have policies to handle dormant accounts, such as charging fees, restricting access, or transferring funds to a separate account.
Second-chance checking accounts allow those who have been denied a traditional account to open a specialized one to help them build a strong financial foundation. Financial institutions offering second-change checking accounts include Capital One, Chime, GO2bank, GTE Financial, Fifth Third, Varo and Wells Fargo.
To reactivate your account, you need to either update your personal information, contact details, and any other required information or confirm that they are up to date. The system will guide you through the necessary steps during the reactivation process. Ensure that you have your valid IDs or proof of address ready.
Generally, an abandoned account is one for which there has been no customer-initiated activity or contact for a period of three to five years. States' abandoned-property programs require banks to turn over the funds of such bank accounts to the custody of the state treasurer.
Reactivating a dormant account is straightforward. You'll need to provide detailed information to your bank or building society, such as the account number, holder's name, balance, and any statements you have. This will help verify your identity and reclaim your funds.
After an account has been designated as dormant, you are not permitted to log onto it, make payments, transfer money, or withdraw money. However, dormant accounts can still earn interest on their balances, which must be reported as income on tax returns.
What happens to the money in a bank account if closed? If your bank account is closed with a balance remaining, the bank will issue a refund, typically by mailing you a check.
The Takeaway
Banks and credit unions take note of accounts that show no transactions for a long period of time. The dormant account process starts with one year of no activity. After three to five years, depending on your state, ends with your money being turned over to the state.
Branch will activate the account based on the KYC documents submitted by the customer. Customer will be informed through SMS / e-mails on activation of account. All request received by the branches for activation of account will be processed within three working days from the receipt of the complete application.
The first step is to contact your bank's customer service or visit the branch where the account was held. Explain your situation and inquire if the account can be reopened. If the bank allows reopening, you might need to provide updated identification documents, address proof, and comply with other KYC requirements.
These dormant accounts can pose a significant security risk, primarily because they are often overlooked or forgotten, yet still possess access privileges. As a result, they may become vulnerable to unauthorised access or misuse.
Inactivity (Bank Account Freeze Reason)
Reason: No account activity for over two years, including failure to maintain the minimum balance. Impact: Accounts are treated as dormant or inoperative and frozen. Action: Regularly use the account or reactivate it by following the bank's process.
The bank may keep the account open
If you happen to send money into a closed account, the bank may keep it open. This allows customers to fix the oversight if not replenish the balance within 24 hours.
Sir, I have a Savings/Current Account in your Branch. My Account Number: ____________________ is dormant/inoperative as I have not performed any transaction through this account since long time. Please reactivate my Account to enable me to perform day to day transactions in the above said account.
We take part in the Dormant Accounts Scheme, established under the Dormant Bank and Building Societies Act 2008. If your account is in credit and has been dormant for 15 years or more, we may transfer the balance to Reclaim Fund Limited (RFL).
Individual Customer may approach any branch of the bank with request letter for activation of inoperative account. The customer shall submit Aadhaar number to branch office and same shall be validated from UIDAI using biometric e-KYC.