Savings accounts are a common type of offering provided by banks. They allow you to deposit your saving funds while you reap an interest rate on your money. The concept of a savings account is simple, but what is a ‘dormant’ savings account?
Well, an account that has not been operated for a period of 15 years and more is categorized as a dormant savings account. Despite attempts on part of the bank to contact the account owner, there may be no avail.
When does the account become dormant?
The account becomes dormant when there is absolutely no activity. This includes absence of any withdrawals, deposits or any kind of transaction. The bank may send out statements or communications to the holder, if they continue to be returned without reply, the bank assumes that holder is unavailable. The bank tries different means of communication such as mail or phone before the account is declared dormant.
Time period before the account becomes dormant
Typically, an account is classified as dormant when it has not been in operation for anywhere from 3 to 15 years. The period of time is decided upon by the savings account provider or bank. When the bank account has not seen any transaction for an extended period, the bank tries to contact the account owner. If there is no response from the account holder for up to 4 months, the bank may reach an assumption.
When opening a savings bank account, you must inquire with your bank of the cut-off period. In the case that you savings account becomes a dormant, it can still be operated when you contact the bank again.
However, there are a few things that you must follow:
Reclaiming a hold on the account
If your account becomes dormant, you can conveniently get in touch with the bank and start operations again. However, you will be asked to provide essential details before the account can be accessed. The details that must be provided include the name of the account holder, the account number, the account balance and any old bank statements if available.
Essentially, you must try and provide as much available information about your savings account. This makes it easier for the banking officials to source your information and track your account. Therefore, being able to give you quicker access to your funds and account.